Curbing soaring prices

All quiet: A man walks along the harbour waterfront across from the Sydney Opera House. The rapid house-price gains in Sydney have come despite the current lockdown. — Reuters

SYDNEY: Australia’s banking regulator raised the minimum interest-rate buffer that lenders need to account for when assessing home-loan applications, citing growing risks to financial stability from a booming housing market.

The Australian Prudential Regulation Authority (APRA) told lenders it expects them to assess new borrowers’ ability to meet loan repayments at an interest rate that is at least three percentage points above the loan product rate, according to a statement yesterday.