Property slump affecting small business

By Ericka Pingol | 12 Jul 2019

Loans to small businesses declined as real estate prices fell, according to the Council of Financial Regulators (CFR).

The CFR, composed of the Reserve Bank of Australia (RBA), the Australian Prudential Regulation Authority (APRA), the Australian Securities and Investments Commission (ASIC), and the Australian Treasury, found loans to small businesses dropped during the past year.

“Lenders are, themselves, applying stricter verification of expenses and income to small businesses, and lending may be affected by declining collateral values as housing prices decline,” the CFR said.

Housing credit growth remained steady at a low level, with weakened lending investors including major banks, the council said.

The council also noted that there were signs of stabilisation in Sydney and Melbourne, but the adjustment over the past two years was sizeable, with conditions in capital cities remaining soft.

“Risks to lenders from housing price falls have, to date, been limited by the strength of the labour market, low interest rates, and the improvement in lending standards in recent years. Housing loan arrears have continued to edge higher, but with significant variation between regions,” the council said.


Top Suburbs : trott park , ferntree gully , woolloongabba , newtown , nightcliff


Get help with your investment property

Do you need help finding the right loan for your investment?

When investing in property, it is important to make sure that you not only have the lowest available rate that you can get, but also have the correct loan features for your needs.

Just fill in a few details below and we'll then arrange for a local mortgage broker to contact you and work out what features or types of loans are right for your needs. We'll even help with the paperwork. Plus an appointment is free.

How soon would you like a mortgage?
What is your Annual Household Income i $
Do you currently own any Investment Properties?
Do you own your own residence?
How much equity do you have in all your current properties?
First Name
Last Name
Where do you live?
What number can we reach you on?
E-mail address
We value your privacy and treat all your information seriously - you can check out our privacy policy here