News: UPDATE 1-Australia's McGrath Ltd plans restructuring on weak fiscal 2018 earnings

(Adds details on restructuring plan and costs, year-to-date stock price performance)

Nov 6 (Reuters) - McGrath Ltd (MEA) said on Monday that it expected weaker fiscal 2018 earnings because of government policy changes around foreign buyers and developers compounded by tightened lending requirements in the housing sector.

The Australian residential realtor, which did not provide an estimate of its own, said it did not expect to meet the A$16.6 million ($12.70 million) EBITDA target set by Bell Potter Securities because of a slowdown in its company-owned sales segment and lower listing volumes.

The company, whose stock has fallen 29.1 percent in the year to Friday's close, said it believed the cost cuts required to meet Bell Potter's target would not be in its long-term best interests.

McGrath said it was working preliminarily on a plan to cut about A$5 million in annual costs mainly by restructuring its board and executive team as well as reducing roles linked to acquisitions and other non-revenue generating activities.

It said the plan would involve incurring one‐time restructuring charges between A$1.4 million and A$1.6 million and that fiscal 2018 earnings could be 20 to 25 percent lower than Bell Potter's estimate, as a result.

The company said in a statement it based its forecast on a weak financial performance in the first four months of fiscal 2018.

Some of the Australia's biggest banks have hiked home loan rates since March amid regulator concern of a property bubble in two of the country's biggest cities - Sydney and Melbourne.

($1 = 1.3075 Australian dollars)