24 Jan 2024

Economist on Reserve Bank plans for debt-to-income lending

From Morning Report, 7:48 am on 24 January 2024

A property economist is welcoming the Reserve Bank's plans to introduce debt-to-income lending rules for house buyers.

From the middle of this year, owner-occupiers will have loans set to six times their income, while investors will be set to seven times their income.

Loan-to-value ratios will be relaxed at the same time, intended to help first-home buyers who can service a loan but can't raise a big enough deposit.

CoreLogic chief property economist Kelvin Davidson spoke to Corin Dann.