Australia’s second-largest lender, Westpac Banking Corp, reported a 20% fall in mortgage applications following the Labor government’s tax changes. The bank forecasts investor housing credit growth to halve next year.
Impact on Housing Market
The tax changes have weakened housing demand, affecting Australia’s top four banks that control over 70% of the national mortgage market. Westpac’s CEO, Anthony Miller, stated that the undersupply of housing combined with population growth will partially offset the impact of higher interest rates and recent policy changes on the housing market.
Westpac reported cash earnings of A$1.8 billion for the quarter ended June 30, down from A$1.9 billion a year earlier. The bank’s core net interest margin was broadly stable during the quarter, while its lending and deposit books rose 2%, reflecting broad-based growth across the Australian portfolio.
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.
