RBA’s Kent warns mortgages are still risky, despite offsets

RBA assistant governor said the popular use of offset accounts by interest-only mortgages does not mean the tightening of lending "was not warranted"

RBA assistant governor said the popular use of offset accounts by interest-only mortgages does not mean the tightening of lending “was not warranted”

The popular use of “offset accounts” by interest-only mortgage borrowers does not mean the tightening of lending standards was unnecessary, a Reserve Bank of Australia (RBA) assistant governor has said.

“I would caution against any suggestion that this similarity regarding the build-up of financial buffers means that the tightening of lending standards for interest-only loans was not warranted – far from it,” Christopher Kent told the audience at a conference in Sydney on August 14.

The use o

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