For the first time ever, the Australian banking regulator has announced it will impose new debt-to-income limits on housing loans made by banks.
Such limits are a common tool used by regulators in other nations – including the United Kingdom, Ireland, New Zealand and Canada – to cool housing market lending. The aim is to prevent meltdowns like we saw in the global financial crisis in 2008.
Here’s what’s changing – and what it could mean for prospective home buyers and the housing market as a whole.
