Australian mortgage brokers avoid regulatory interference
AFG, Australia’s largest mortgage broker, has urged the country’s regulation authority, APRA, to ‘hold fire’ on efforts to cool the property investor lending market, and it would appear that the regulator has listened. An APRA representative yesterday stated that although there remains the possibility of future regulator interference, this would be unnecessary if investor loans continue to avoid the limits set by the regulator. As a result, shares in AFG increased by almost 5%.
The chief executive of the country's largest mortgage broker, the newly listed Australian Finance Group, has urged the banking regulator to "hold fire" on more moves to cool the investor lending market, saying current measures are already "starting to bite".

AFG managing director Brett McKeon said investor loans had fallen as a percentage of AFG's book.

APRA said it would prefer "if lenders themselves maintain a healthy dose of common sense in their lending practices". Credit: Peter Braig

"May and June investor numbers are off quite significantly over the previous six months – we think APRA is starting to bite in that regard," he said during a briefing after AFG posted its maiden profit result as a listed company on Thursday that is 8 per cent above the prospectus forecast.

He urged the Australian Prudential Regulation Authority to take stock of its regulatory efforts.