ASIC ups focus on interest-only home loans
Data collected from 16 home loan providers including large and small banks and non-bank lenders shows mixed developments on the interest-only lending for home loans front, according to the Australian Securities and Investments Commission (ASIC).
The regulator has completed a review on interest-only home loans announced in April, with results showing Australia’s major banks have cut back interest-only lending by $4.5 billion in the past year. Conversely, other lenders have offset this decline, with smaller banks and non-bank lenders increasing their share of interest-only lending.
The 16 lenders reviewed in the ASIC research provided a total of $14.3 billion in interest-only loans in the June 2017, down $19 billion from the September 2015 quarter.
ASIC will now enter the second stage of its review to assess interest-only lending patterns from both lenders and mortgage brokers.
Data for the first stage of the review was collected from Westpac Banking Corporation, ANZ, and the Commonwealth Bank of Australia (CBA), in addition to ING Bank, Teachers Mutual Bank and the Bank of Queensland amongst others.
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