Three out of the Big Four Banks have responded to The Reserve Bank of Australia’s decision to hold interest rates.

These banks have lowered the ‘stress-test’ which applies to those who apply for home loans.

Peter White, Managing Director of the Finance Brokers Association of Australia, told Jamie Burnett on Perth Live, “When somebody is going for a loan, when you assess their capabilities to make the repayments…you want to make sure if things move around a bit, people can afford it and you’re not intentionally putting them into a situation that could push them into hardship…”

“We are pretty much at the peak of where they’re going to go…if we are currently running at a three percent stress-test, is that really fit for purpose? My view, our view at the Association is that it’s not,” Mr. White continued.

Press PLAY to find out which bank has made changes to the stress-test

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