APRA publishes updated FAQ on prudential treatment of residential mortgage loans

The Australian Prudential Regulation Authority (APRA) has published an updated frequently asked question (FAQ) for authorised deposit-taking institutions on the treatment of loans issued under the Government’s Home Guarantee Scheme.

The FAQ clarifies that loans extended under the expanded scheme will be subject to the same regulatory treatment as previous tranches.

The FAQ is available on the APRA website at: Calculation of credit risk weighted assets – frequently asked questions.

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