• Real estate continues to dominate the headlines in tandem with speculation on the future of the housing market as the banking regulator’s crack down on interest-only loans begins to bite.

Bank of Queensland chief executive John Sutton was front-page news last week when he revealed that some of his competitors were offering maximum loans of up to 30 per cent more than his bank was prepared to write. He finished with a timely warning: “This will end in tears.”

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It’s better to trim your sails than suffer mortgage stress or worse, a distressed sale. Photo: Louise Kennerley