APRA - 5% deposit scheme

Question

? What is APRA's view of the 5% deposit scheme? ? You are restricting lending while the government supports people taking out 95% loans. How does that work? ? APRA has limited high debt-to-income home loans to constrain riskier lending, have not changed the serviceability buffer. Does the government tying lenders to 95% leverage conflict with APRA's aim to reduce high risk lending? ? Would a better system just be to stop the Government's risky 5% deposit and just relax macro prudential settings?

Answer

See attached response.

Documents

• Question with answer (PDF) (opens in a new tab)
• SQ26-000252 APRA - 5- deposit scheme.pdf (opens in a new tab)