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PHOTO: GLENN HUNT/AFR – If you’re shopping for a house, you should find all the banks are willing to talk.
A move to relax loan-to-value restrictions has altered the mortgage market.
As of this year, banks have been able to lend 15 per cent of their new lending to borrowers with deposits of 20 per cent or less of a property purchase price. That is compared to 10 per cent under the previous rules.
Property investors also now need only 35 per cent, compared to 40 per cent under the old rules.
Mortgage broker Bruce Patten, of Loan Market, said, even though it had only been a small move, it made a big difference to the market.
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