Interest- Only Mortgages to come back to the Market

19 Dec 2018

Back in March 2017 the Australian Prudential Regulation Authority (APRA) introduced a limit to the amount of Interest only loans financial institutions could have on their books. Now it appears that those restrictions will be lifted as on January 1st 2019.

At its peak, interest-only loans accounted for around 40 per cent of all mortgages, it was believed that these loans carry more risks than interest and principle mortgages, leading APRA to tighten standards on such lending.


IT’S WORKED, we have seen interest only loan numbers fall off a cliff, and APRA now say these lending restrictions have done their job of improving the health of our banking industry and protect everyday consumers from risky loans.

I feel this change will have a positive impact onto the Australian Property Market, and Brisbane’s market specifically. The Brisbane market has seen some mild growth in the last 12 months but the opportunity for double digit growth is underlaying and waiting for the right lending environment and buyer confidence.


Zoran Solano

Senior Buyers Agent

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