Aussie home market cooling as banks tighten reins
Regulators step in after low mortgage rates and a flood of Chinese investments propel home prices 29% higher in three years
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NICK Hart bought four homes in Adelaide in less than two years, and was getting ready to make an offer for a fifth, when a regulator-inspired move to cool the sizzling Australian property market spoiled his plans.
"I went to my bank for my next home loan and their response was eligibility assessments have changed, and they can't lend more to me just yet," said the 37-year-old sales manager at a software services firm. Mr Hart said the bank told him his existing loans, equivalent to 93 per cent of the value of his A$1.8 million (S$1.8 million) properties, need to be reduced before he can borrow any more.
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