Homeowners who want to tap into their increased equity in their homes are being warned they may be disappointed, unless they have had an income boost, too.
Mortgage broker Christine Lockie, of LoanPlan, said, provided borrowers met loan-to-value restrictions, banks were putting means, income and cashflow first.
"It would appear that many home owners don't want to risk selling their properties if they are unable to replace their existing home within their affordability.
"Instead they're looking to stay put and renovate. However, often increasing an existing mortgage is not easy even when there is good equity,” she said...MORE»
Thursday, July 21st, 10:14AM
The Reserve Bank says more official cash rate cuts are likely as it fights to get inflation into its target range.MORE»
Wednesday, July 20th, 9:57PM
[UPDATED - ANZ position added] Three banks, and Sovereign, have introduced tougher new LVR rules for property investors.MORE»
Westpac has acted early and stopped taking any applications for investor loans with less than 40% equity.MORE»
Two of the biggest non-bank lenders are looking to merger to take advantage of the changing lending environment in both Australia and New Zealand.MORE»
The Reserve Bank has today released a consultation paper proposing changes to loan-to-value restrictions (LVRs) to further reduce risks to financial stability arising from the current boom in house prices.MORE»
Lower than expected inflation has economists predicting another cut to the official cash rate.MORE»
Assistant Reserve Bank Governor John McDermott has explained how the bank formulates and assess monetary policy and comes to its OCR decisions.MORE»