REIA President, Adrian Kelly said APRAs announcement, by its own admission, is expected to have a relatively modest impact on the mortgage market.
“Given most borrowers do not lend at their maximum capacity, this will – according to APRA – reduce maximum borrowing by around five per cent.
“REIA has always wanted responsible lending practices because the last thing we want to see in our industry is people ‘biting off more than they can chew’.
“We would all like to see a return to a more balanced market with some longevity to it and one way to return to that is by addressing supply which should kick in as lockdowns end and more properties come to the market,” Mr Kelly said.
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