Slowly but surely the LVR rules are being watered down and not before time
Low deposit home lending edges up in April
Paul McBeth | Monday May 26, 2014
The proportion of home lending with deposits of less than a fifth of a property’s value edged up in April, a month after the Reserve Bank embarked on lifting interest rates.
About 4.3 percent of new home loans in April were at a loan-to-value ratio of 80 percent or more, up from 3.6 percent in March, according to Reserve Bank figures. Banks loaned $4.67 billion for new mortgages in the month of which $253 million was at an LVR of 80 percent or more and a further $54 million was exempt from the central bank’s restrictions. Excluding exemptions, high LVR mortgage lending made up 5.4 percent of all new loans, up from 4.8 percent in March.