Loan limits have an anti-competitive effect!

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SYDNEY (CU)_Throughout 2020, amid the economic downturn brought about by the COVID-19 pandemic, owner-occupied buyers in the housing market significantly increased their purchases, while investors withdrew from the trade. Nevertheless, in the recent months, investors have returned to the property market, particularly inspired by ultra-low interest rates and rising prices. Meanwhile, last month, the Council of Financial Regulators said they are paying attention to the high levels of household debt and are considering policy options that could be deployed to address the risks involved.

These “policy options” may include restrictions on…

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