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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.
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“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
