Invest
‘Foolish’ loan choices flagged for investors in 2019
Investors have been warned to be cautious in adopting interest-only loans, despite APRA recently lifting its cap on lenders, with one expert labeling the uptake of such loans “foolish” in the current market.
‘Foolish’ loan choices flagged for investors in 2019
Investors have been warned to be cautious in adopting interest-only loans, despite APRA recently lifting its cap on lenders, with one expert labeling the uptake of such loans “foolish” in the current market.

Robert Muller, managing director of BIS Oxford Economics and property expert, explained to Nest Egg that although APRA’s lifting of the 30 per cent cap placed on lenders offering interest-only loans has been welcomed by many in the industry, investors should be careful of diving into such loans head first in the current market.
“Would I borrow at the moment and take an interest-only loan? I wouldn’t call it a wise financial decision,” he said.
“It’s all good and well in a period of strong capital growth but [at the moment], you’re gaining no equity in the property, basically, in fact you’ve got negative equity in a current falling market.”
He said while APRA’s changes, which came into effect on January 1, does offer the opportunity for demand in housing loans to rise, this will not occur for some months as savvy investors will fail to be enticed until markets begin to recover.

“It’s not these side issues that will be a critical thing, it will be a turn-around in property prices in terms of the fundamentals of the market turning from negative to flat,” he said.
“As long as prices keep falling, investors are going to remain out of the market in the numbers they were in the past, so we’re not going to see a return to higher demand.
“Could we see a reduction in the rate of decline in demand for housing loans? Yes, that could happen over time if the signs were there that price declines are reducing,” Mr Muller said.
“I don’t think we will see that in the next six months. Could we see that in the second half of this year? Yes. And if that was to occur, then that might encourage more people.”
APRA’s announcement
Towards the end of last year, Australian Prudential Regulatory Authority (APRA) announced it would lift the 30 per cent cap on the number of new interest-only mortgages it had placed on lenders since March 2017.
The change came into effect on 1 January this year, on the requirement that lenders offered APRA assurances that they had strengthened their lending practices and were offering loans prudently.
APRA has previously said that most lenders, including the four major banks, have met such criteria.
Areas of growth in 2019
Mr Muller did identify a few key areas were small growth is predicted to occur over the coming year.
He said Brisbane’s detached housing market, Adelaide and Hobart may all see some improvement in growth rate, with regional areas such as Newcastle and Queensland’s Sunshine Coast and Gold Coast worth keeping an eye on.

Property
Hidden cost, higher prices: Why a council fee fight matters for Australia’s housing pipeline
A dispute between the Housing Industry Association and Goulburn Mulwaree Council over development cost estimates is more than a local skirmish—it spotlights a systemic pricing lever that can compound ...Read more

Property
Why Aussie homes are turning into stepping stones for the new generation
A new cohort of buyers is treating their first property as a launchpad, not a destination—and the mortgage industry is pivoting in lockstep. Read more

Property
Rate cuts ignite an upsizing wave: how to win the next phase of Australia’s housing cycle
Cheaper money is reviving borrowing capacity and confidence, and upsizers are back in force — most visibly at auctions where clearance rates have lifted to yearly highs. The ripple effects extend ...Read more

Property
Rate anxiety fades, affordability bites: What Australia’s property market shift means for business
Australian buyers are no longer driven primarily by interest rate fears; the binding constraint is affordability. New research shows price pressure, not policy moves, is shaping behaviour—forcing ...Read more

Property
South Australia's first-home buyer boom fuels a frenzy for lenders, builders and retailers
South Australia has quietly become the nation’s most active first‑home buyer market, fuelled by falling rates, generous state incentives and a responsive broker ecosystem. Read more

Property
Melbourne’s turning point: the 2025 playbook for investors—and the 2026 upside
After lagging other capitals, Melbourne is quietly moving off the floor. Prices have logged several consecutive months of growth, rental markets remain tight, and forecasts point to a sharper upswing ...Read more

Property
Brisbane hits the million-dollar mark as growth takes a detour and investors eye new opportunities
Brisbane has crossed the symbolic $1 million median for houses, but the more investable momentum is in units—and the growth curve is flattening. Read more

Property
North platform adds household reporting feature to boost adviser efficiency
AMP's North platform has launched consolidated household reporting across multiple client accounts, helping financial advisers streamline their client review processes. Read more

Property
Hidden cost, higher prices: Why a council fee fight matters for Australia’s housing pipeline
A dispute between the Housing Industry Association and Goulburn Mulwaree Council over development cost estimates is more than a local skirmish—it spotlights a systemic pricing lever that can compound ...Read more

Property
Why Aussie homes are turning into stepping stones for the new generation
A new cohort of buyers is treating their first property as a launchpad, not a destination—and the mortgage industry is pivoting in lockstep. Read more

Property
Rate cuts ignite an upsizing wave: how to win the next phase of Australia’s housing cycle
Cheaper money is reviving borrowing capacity and confidence, and upsizers are back in force — most visibly at auctions where clearance rates have lifted to yearly highs. The ripple effects extend ...Read more

Property
Rate anxiety fades, affordability bites: What Australia’s property market shift means for business
Australian buyers are no longer driven primarily by interest rate fears; the binding constraint is affordability. New research shows price pressure, not policy moves, is shaping behaviour—forcing ...Read more

Property
South Australia's first-home buyer boom fuels a frenzy for lenders, builders and retailers
South Australia has quietly become the nation’s most active first‑home buyer market, fuelled by falling rates, generous state incentives and a responsive broker ecosystem. Read more

Property
Melbourne’s turning point: the 2025 playbook for investors—and the 2026 upside
After lagging other capitals, Melbourne is quietly moving off the floor. Prices have logged several consecutive months of growth, rental markets remain tight, and forecasts point to a sharper upswing ...Read more

Property
Brisbane hits the million-dollar mark as growth takes a detour and investors eye new opportunities
Brisbane has crossed the symbolic $1 million median for houses, but the more investable momentum is in units—and the growth curve is flattening. Read more

Property
North platform adds household reporting feature to boost adviser efficiency
AMP's North platform has launched consolidated household reporting across multiple client accounts, helping financial advisers streamline their client review processes. Read more