'Something will be done' to cool home lending

A senior Reserve Bank official says regulators will take action to cool home lending, but that action is "unlikely" to involve loan-to-value limits.

Fronting the Senate Economics Committee, Reserve Bank assistant governor (financial system) Malcolm Edey said "something will be done" to limit risky home lending.

Dr Edey told committee members that the tools will be focussed particularly on investor finance, but might extend beyond that segment.

However, he all but ruled out limiting high loan-to-value ratio (low-deposit) loans, saying such a move would target the "wrong segment of the market".

more: 'Something will be done' to cool home lending

A senior Reserve Bank official says regulators will take action to cool home lending, but that action is "unlikely" to involve loan-to-value limits.

Fronting the Senate Economics Committee, Reserve Bank assistant governor (financial system) Malcolm Edey said "something will be done" to limit risky home lending.

Dr Edey told committee members that the tools will be focussed particularly on investor finance, but might extend beyond that segment.

However, he all but ruled out limiting high loan-to-value ratio (low-deposit) loans, saying such a move would target the "wrong segment of the market".