Why is it getting more difficult to get a home loan?

It is becomming increasingly more difficult to obtain a home loan - why is this:

• The Federal Government is worried that the Australian property market is in a bubble, because home loan interest rates are low and credit is easy to obtain;
• The Government uses its banking regulatory body APRA to force banks to make it harder to get property loans in an attempt to cool the housing market.

This article in The Australian Business Review points to recent APRA requirements for lenders to obtain actual living expenses from borrowers and not just use benchmark expense ratios.

Remember just because the bank approves your loan, doesn't mean you can afford it, and you need to complete detailed expenditure analysis before determining how much you should borrow.  MCKFS will do this for you when assessing your needs for a home loan.