Macroprudential 3.0 takes aim at Sydney and Melbourne property

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By Leith van Onselen

Last month, UBS released damning analysis of Westpac’s mortgage sample from the Royal Commission, which revealed that ‘liar loans’ are prevalent among its $400 billion mortgage book, and that 35% of Westpac’s sample loans had Debt-to-Income ratios above 7 times:

Now, in the wake of the Australian Prudential Regulatory Authority’s (APRA) recent letter to Authorised Deposit-Taking Institutions (ADIs) indicating that ADIs will need to limit lending at very high debt-to-income levels, CoreLogic’s Cameron Kusher has analysed the impact of limiting loan-to-income (LTI) levels at 6 times across Australia’s capital cities:

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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.