RBA’s Kent warns mortgages are still risky, despite offsets
RBA assistant governor says use of offset accounts does not remove the need for tighter lending standards
The popular use of “offset accounts” by interest-only mortgage borrowers does not mean the tightening of lending standards was unnecessary, a Reserve Bank of Australia (RBA) assistant governor has said.
“I would caution against any suggestion that this similarity regarding the build-up of financial buffers means that the tightening of lending standards for interest-only loans was not warranted – far from it,” Christopher Kent told the audience at a conference in Sydney on August 14.
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