The commission headed by former High Court judge Kenneth Hayne may recommend tighter safeguards around bank lending practices and strengthened regulators to oversee them. The opposition Labor Party’s proposals to limit negative gearing tax breaks to investment in new housing and to halve the capital gains tax deduction to 25 per cent have many investors wary.
Total housing credit rose 0.3 per cent for a third straight month in November, while from a year earlier it increased 4.9 per cent, the slowest seasonally adjusted rate since August 2013, when it grew 4.8 per cent, the RBA figures showed.
“The recent softening in housing credit growth is not surprising given the slowing in major capital city house prices and sluggish residential sales transactions volumes,” NAB credit analyst Andrew Jones said.
JP Morgan’s Ms Auld said APRA’s lifting of restrictions in interest-only loans would do little to stimulate investor lending.
“We doubt whether this will be material for investor lending in the months ahead given the macro-prudential constraint on interest-only lending has not been binding; dwelling prices continue to decline in the major cities; and lending standards remain tight, with a continued focus on serviceability and loan to income ratios,” she said.
from Viral up Blog http://bit.ly/2EVmtum
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