APRA Maintains Current Lending Rules Amid Economic Uncertainty

The Australian Prudential Regulation Authority (APRA) announced on Monday its decision to maintain existing lending standards, keeping the 'serviceability buffer' unchanged. This requirement ensures that banks assess home loan applications assuming interest rates could rise by 3%. For instance, if a borrower applies for a loan at a 6% interest rate, the bank must evaluate their ability to manage payments at a 9% rate.