New legislation proposed in last week’s budget would extend APRA’s (the Australian Prudential Regulation Authority’s) ability to control the non-bank sector.
This would put even more pressure on investors who have bought in suburbs blacklisted by the traditional banks and who are looking for alternative lenders.
The Treasurers budget speech suggested that new legislation could allow APRA to “differentiate the application of loan controls by location.”
“Non-ADI’s would also be disinterested in those suburbs, but they may be getting strong inquiries from borrowers who have fallen out of favour with banks,” private lenderAustralian Financial Review.
“Those postcodes would be those which could be overheated … had a lot of borrowing.”