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APRA faces home lending grilling

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Housing investors be warned.

There is a growing expectation that Australian regulators will be tightening the rules surrounding mortgage lending.

Federal politicians will try and glean how soon so-called macro-prudential measures will be imposed when they grill the Australian Prudential Regulation Authority during a three-hour hearing on Friday.

Global credit rating agency Standard & Poor's said in a report on Thursday it is increasingly likely that financial regulators will look to address the growing risks to financial stability from strong house prices and investors lending demand.

However, it does not expect the application of measures will have an immediate impact on the ratings of financial institutions.

Friday's latest credit numbers for October from the Reserve Bank will again likely highlight how investors are outstripping owner-occupier demand for mortgages.

In September the annual rate for home loans by investors was 9.5 per cent, almost double that of owner-occupiers.

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Plans to tighten mortgage lending standards come under Canberra spotlight.

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