Higher-equity borrowers pick up mortgage slack
The bank is releasing data on high-LVR loans on a monthly basis as part of its monitoring of the new LVR regulations.
From October 1, banks have only been able to lend 10% of their new loans to borrowers with a deposit or equity of less than 20%.
The data shows that banks were lending 26.5% high-LVR in August and 25.5% high-LVR in September. It had been 30% earlier in the year but dropped to 11.7%, after exemptions, when the rules were introduced.
It’s still above the cap but that is likely due to preapprovals that had to work through the system. Lending will be measured over a six-month period initially.
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