Banks relax a little over home loan rules

Latest bank-lending statistics suggest that the Reserve Bank leash on low-equity home loans is finally starting to loosen.

Loan to value ratio (LVR) rules introduced in October meant that banks were not able to allocate more than 10 per cent of new lending to borrowers with less than 20 per cent deposit. High-LVR lending reached a new monthly low in January, at just $147 million compared to $1.19 billion immediately before the rules came into force.

Latest figures for February have shown that the trend has reversed slightly.

Latest bank-lending statistics suggest that the Reserve Bank leash on low-equity home loans is finally starting to loosen.

Loan to value ratio (LVR) rules introduced in October meant that banks were not able to allocate more than 10 per cent of new lending to borrowers with less than 20 per cent deposit. High-LVR lending reached a new monthly low in January, at just $147 million compared to $1.19 billion immediately before the rules came into force.

Latest figures for February have shown that the trend has reversed slightly.

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