New Interest-Only Mortgage Lending Falls Sharply in June 2017 Quarter

The quarterly property exposures data of authorised deposit-taking institutions (ADIs) reveals a big fall in interest-only mortgage lending in the June 2017 quarter.  Although the Australian Prudential Regulation Authority (APRA) has mandated a 30% cap on interest only mortgage terms, this cap becomes effective from the September 2017 quarter.  The latest data indicates that although there is still some work to do, most of the heavy lifting was done over the June 2017 quarter.