Banks’ Home Lending Mobbed By A Wet Lettuce (Again)!

As I have been highlighting, lending for mortgages has been growing way faster than inflation, including for investor borrowers, and this is first lifting prices because the growth of credit is one of the stronger levers of home price growth, along side higher migration, but also put more households in high-debt to income scenarios, while lifting typical repayments for many to more than 40% of income. The red warning lights have been flashing for months, and even the Reserve Bank recently warned of risking risks in their latest statement on monetary policy. Investor activity, the RBA’s analysts wrote, “tends to […]