The Australian Prudential Regulation Authority has proposed a seven per cent home loan buffer be removed.

APRA’s serviceability buffers have been in place since 2014.

The regulator wants to raise the second buffer against the actual interest rate paid by customers, from 2 per cent to 2.5 per cent.

ANZ CEO Shayne Elliot tells Ross Greenwood he’s in full support of the change.

“They were put in place with really good intention but at a different time when interest rates were higher.

“Now interest rates are a lot lower, and so the buffer just wasn’t as relevant as it used to be, and it was clearly beginning to lock some people out of the market.”

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