"Cannot believe that these two Gen Y'ers were offered $900k to...

"Cannot believe that these two Gen Y'ers were offered $900k to buy a place. An architect and communications worker! "

I can. Australia's banking regulator, APRA can.

In fact, in the AFR review today, APRA has challenged lenders to better understand the ability of their customers to repay loans.

They have enlisted Auditors of the banks and other ADIs to a targeted review of housing loan approval standards.

APRA Chairman said "Debt interest payments as a proportion of disposable income, although falling recently, remain quite elevated compared to the experience of earlier decades"

Looks like there could be further improvements to lending standards following this targeted review. Gen Y might not be able to afford even a house out in the sticks soon.

About time APRA acts.