Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.

Credit lending conditions ‘loosen’

Staff Reporter 1 minute read

Following ANZ’s announcement earlier this week that it will look to ease its lending criteria, new research from RateCity has found there has been a general loosening of credit over the last five months.

According to RateCity’s chief executive officer Damian Smith, there are 18 more home loans offering 95 per cent loan to value ratio (LVR) today than five months ago.

“But it is still way off the number offered 18 months ago, when there was 1,165 home loans offering 95 per cent LVR,” Mr Smith said.

Over the last 18 months, the lending environment has changed dramatically. Previously there were 654 loans with a 100 per cent LVR, however, today no lenders offer 100 per cent LVR loans.

Similarly, 97 percent LVR home loans were popular in 2008 with 355 available; the number is now just 62.

Out of the major four banks, NAB offers the highest LVR of 95 per cent on some of its home loans, ANZ and Commonwealth Bank offer up to 90 per cent, while Westpac recently dropped its maximum LVR to just 87 per cent for new customers

Credit lending conditions ‘loosen’
TheAdviser logo

If you’re feeling overworked and overwhelmed in this fast-paced mortgage market, it’s time to make some changes, and the Business Accelerator Program can help! Early bird tickets are on sale now. Work smarter, not harder, this year.



more from the adviser
handshake news MyState names banking general manager

A former broker head has returned to MyState Bank, to tackle turn...

BBS 2021 ta SA/NT’s top brokers crowned

The leading brokers in South Australia and the Northern Territory...

Paul Kearney ta AFCA recruits from ME Bank

The complaints authority has named a new executive general manage...