Are you a mortgage sheep or a mortgage goat?

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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:

About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.