APRA released its quarterly bank property exposures data yesterday and interest-only loans keep falling with issuance at only one third of the bubble peak:
The stock of interest-only loans is also easing:
Judging by this there is scope for banks to ramp up interest-only lending in the short term given the cap is 30% of flow though I don’t expect them to get far given the new affordability criteria.
And they won’t have long, either. As the great reset approaches they will need all the capacity that they can find to absorb it:
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