SYDNEY (CU)_Over the past year, house prices in Australia have surged to record highs on the back of historically low interest rates amid the pandemic, which made larger loans more affordable. In order to tackle the situation, the Australian Prudential Regulation Authority (APRA) in October, increased the home loan serviceability buffer from 2.5 per cent to at least 3 per cent. According to experts, the move will reduce the maximum borrowing capacity for the typical borrower by around 5 per cent.
Meanwhile, the chief of the agency revealed this week that the decision announced last month had…
