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One lender has changed its lending rules in response to the booming Sydney and Melbourne property markets.
La Trobe Financial has increased its maximum loan amount threshold from $1 million to $1.5 million for loans of 80 per cent LVR.
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This applies to both full-doc and lite-doc loans, but only for borrowers in metropolitan New South Wales and Victoria.
La Trobe said it had seen strong levels of interest for properties valued between $1 million and $2 million in the Melbourne and Sydney metro areas.
Head of distribution Cory Bannister said that had driven La Trobe’s change in policy.
“This is to ensure we are able to continue to deliver market-leading products to our customers,” Mr Bannister said.
Sydney's median house price reached $858,000 at the end of December after increasing 17.6 per cent during the year, according to CoreLogic RP Data.
The median unit price also skyrocketed, increasing 13.3 per cent to $615,000.
Melbourne house prices jumped 12.1 per cent to $660,000, while unit prices climbed 5.4 per cent to $490,000.
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