Moves to curb risky lending could take some of the heat out of Sydney and Melbourne's property markets. Photo: Rob Homer
Australia's financial regulators have launched a joint attack on risky home lending as investment and interest-only loans threaten the stability of the financial system.
The Australian Prudential Regulation Authority called an emergency meeting with the nation's banks to tell them of new speed limits that will prevent them from aggressively pursuing investment property borrowers.
At the same time, the Australian Securities and Investment Commission said it would investigate interest-only loans, which make borrowers highly sensitive to movements in interest rates.
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