Westpac and the Australian and New Zealand banking group (ANZ) began lowering the interest rates they use to submit loan applications for stress tests, following the announcement by Australian Prudential Regulatory Authority (APRA) with less stringent lending rules.
The two banks were the first among the big four to apply more flexible credit rules.
Westpac began to evaluate the service capacity of its customers using a minimum ground test of 5.75%. ANZ has announced a new floor rate of 5.50% for retail credit, according to a memo market consulted by Reuters.
Meanwhile, the Commonwealth Bank of Australia (CBA) was in the process of revising its own test rate, said a spokeswoman for the ABC.
"The time has come to change the approach used to determine the floor of the economic affordability, given the current low interest rate environment," said the spokeswoman. in a statement sent to Reuters by email.
Housing prices are now stabilizing and the APRA credit easing measure was "likely to see an increase in the borrowing capacity of many new borrowers," according to the account. of the July Central Bank Policy Meeting.
The reduction means that borrowers who apply for home loans with variable loan rates of about 3.5% will now be tested on their ability to repay a loan with a 6% interest, or 1, 5% less than before.
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