Higher mortgage repayments on cards for holiday home owners under Apra crackdown

Australian Prudential Regulation Authority has tightened rules covering what qualifies as 'owner-occupied' home loans

Owners of holiday houses may be hit with higher mortgage repayments as the effects of a change in the way the prudential regulator collects statistics works its way through the banking system.

As part of efforts to make sure Australia's banks are "unquestionably strong" and could resist another global financial meltdown, the Australian Prudential Regulation Authority has tightened the rules covering what type of loans qualify as "owner-occupied" home loans - the safest and generally the cheapest type.