PHOTO: Average new loan sizes could fall 8 per cent amid a regulatory crackdown. Photo: Glenn Hunt
Australians will be able to borrow $30,000 less to buy a home as banks tighten their lending practices amid new regulations and a bruising royal commission.
The average new loan size is expected to fall about 8 per cent – from $379,000 to $349,000 – as banks specifically target high-risk loans, according to new Morgan Stanley research.
New borrowers with a modest deposit are likely to have a “materially different” conversation with their banker than prior to the regulation changes, according to IFM Investors chief economist Alex Joiner.
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