1 Comment 1 CommentThe latest figures from the central bank show just 4.8% of the $3.09 billion lent in January was to people with deposit of less than 20%.
That figure fell to 3.8% after exemptions, such as Welcome Home Loans and construction finance, were taken out.
Under the speed bump restrictions introduced in October registered banks could only lend 10% of their mortgages to customers who had equity of less than 20% in a deal.
Before the restrictions were introduced 25.1% of lending was to low deposit home buyers in September. The January figure is down from 5.6% in December.
However this situation is likely to change. ANZ has told brokers that it has worked through most of the pre-approvals it had on its books when the restrictions started and is now looking to do more in the low-equity space.
It said that in the next month or so it will become far more active in this market and borrowers who have a strong ability to service a loan will be welcomed. It’s approach won’t be to just existing ANZ customers.
Likwise Westpac has indicated it will be more aggressive in this market too.
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In my personal opinion, there are better banks/places to go to for a low equity loan, my advice to all would be to shop around and read all the fine print/work out what it's going to cost you in fee's first.
Best of luck to all out there struggling for a homeloan