An incoming Coalition government will direct APRA to lower the 3 percentage point serviceability buffer on new home loans, The Australian reports.
Opposition housing spokesman Michael Sukkar told The Australian the setting was no longer fit for purpose, while making it harder for existing mortgage holders to refinance loans.
The Coalition would direct the regulator to adjust the capital treatment of loans backed by mortgage insurance.
This would be done by rewriting the regulator’s Statement of Expectations.