Will there be a Australia Real Estate Credit Crunch ? Westpac and APRA prepare for a banking shock

The chatter among economists and the Australia real estate industry is that the tighter LVR credit standards by APRA and higher rates announced by Westpac is not just a speed limit to deter property investors but, has a possible motive to prepare the banks for an economic shock. By Scott O. Talbot

The Linkedin discussion on October 19, 2015 ‘Australian Real Estate Financing Conundrum’ days prior to the Westpac rate rise saw the smoke on the horizon and speculated a possible outcome.

I suspect, hidden inside the matrix of dozens of recent articles and sources reporting the Westpac rate hike, a possible set of triggers to justify Westpac’s unprecedented interest rate hike. That being said, these are my opinions from a property market prospective.

Trending in the media is APRA and the effect of the new policies are having on the banking industry, in particular the Australian real estate investor LVR bondage. Westpac increase is in despite of predictions that the Reserve Bank will further cut official interest rates to a new record low at the next RBA meeting.

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Australia real estate credit crunch