Home loan affordability improves as loan limits kick in; banks favour loans 80% LVR
August 26, 2013 – 03:34pm,
Home loan affordability improved slightly in July after the median house edge price edged lower as banks began tightening their lending to comply with the Reserve Bank’s new ‘speed limit’ confirmed last week.
Mortgage brokers have reported banks increased their effective mortgage rates for low deposit borrowers over June, July and August, slowing lending growth and coinciding with a cooling of house prices.
The Reserve Bank announced a ‘speed limit’ on high loan to value ratio (LVR) mortgages last week, regulating high LVR mortgages to just 10% of new mortgage flow, down from the 30% seen before June.
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