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: