• Contact
  • Feedback
Banking Day
Stay Ahead. Stay Informed.
Concise. Candid. Provocative.
Get the daily banking news that matters
Banking Day – Your trusted source for independent financial insights.
Subscribe Now
  • News
  • Topics
    • All Topics
    • Briefs
    • Major Banks
    • Authorised deposit-taking institutions
    • Insurance, funds and super
    • Payments, mobile & wallets
    • Consumer lending
    • Mortgages
    • Business lending
    • Finance regulation
    • Debt capital markets
    • Ratings agencies
    • Equity capital markets
    • Professional services
    • Work & career
    • Foreign news
    • Other topics
  • Free Trial
  • Subscribe
  • Resources
    • Industry events
  • About us
    • About Banking Day
    • Advertise
    • Feedback
    • Contact Banking Day
  • Search
  • Login
  • My account
    • Account settings
    • User Admin
    • Logout

Login or request a free trial

Mortgage risk edges up in the June quarter

02 September 2016 4:01PM
Mortgage lending in two of the Australian Prudential Regulation Authority's high-risk categories - investment and interest-only lending - rose as a proportion of total lending in the March quarter. However, the proportion of new loans with high loan-to-valuation ratios fell in the quarter.According to APRA's latest report on the property exposures of authorised deposit-taking institutions, total new mortgage lending by ADIs in the June quarter was worth A$98.4 billion, compared with $81.5 billion in the March quarter.The big jump - more than 20 per cent - is due in part to a data revision after three institutions re-submitted their figures.Investment loans made up 34.6 per cent of the value of new lending in the June quarter, compared with 31.5 per cent in the March quarter.Loans with loan-to-valuation ratios between 80 per cent and 90 per cent made up 13.7 per cent of the value of new lending in the June quarter, the same proportion as in the March quarter.Loans with LVRs above 90 per cent made up 8.3 per cent of the total, compared with 8.6 per cent in the March quarter.Interest-only loans made up 36.2 per cent of the total, compared with 34.9 per cent in the March quarter.Loans approved outside serviceability made up 3.5 per cent of the total, compared with 4.4 per cent in the March quarter.The proportion of loans originated by third parties (APRA consider broker originated loans riskier than loans originated through proprietary channels) rose from 46.5 per cent to 48.1 per cent.

I'm a returning subscriber

*
Password reset *
Login

Request a free trial

  • Emailing you the news at 7am.
  • Covering core lending and funding issues, strategy, payments, regulation, risk management, IT, marketing and more.
  • Original news and summaries of major stories from other media – ditch your newspaper subscriptions.
  • Focused on banking and finance, saving you the time spent wading through newspapers and other services.
  • With reporting from former editors and senior writers from the AFR and The Australian.
  • Configured for your phone, laptop and PC.
Free trial Banking Day
Stay Ahead. Stay Informed.
Concise. Candid. Provocative.
Get the daily banking news that matters
Banking Day – Your trusted source for independent financial insights.
Subscribe Now

Consumer lending

  • Latitude, Harvey Norman liable for interest free GO card con

Copyright © WorkDay Media 2003-2025.

Banking Day is a WorkDay Media publication

WorkDay Media Unit Trust

  • Privacy policy
  • Terms of access and use