After today’s news that Westpac and other banks are giving highly-leveraged property investors their marching orders, Martin North discusses the drivers including:
- the interest-only mortgage reset driven by APRA’s Macroprudential 2.0 which limited interest-only lending;
- APRA’s Macroprudential 3.0 which is introducing limits to high leverage lending as well;
- the risk of litigation arising from the Royal Commission which identified many of these loans as effectively predatory.
You go Martin: