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PHOTO: SUPPLIED The Reserve Bank has loosened its restrictions on low-deposit lending.
Banks are now allowed to lend more to people with small deposits – but they’re not jumping at the chance.
From January 1, banks have been able to lend up to 20 per cent of new owner-occupier lending to borrowers with a deposit smaller than 20 per cent.
The loosening of loan-to-value (LVR) restrictions means they can also now lend up to 5 per cent of new loans to investors with a deposit of less than 35 per cent, instead of 30 per cent previously.
Corelogic researcher Kelvin Davidson said it might have been expected that a lift in low-deposit lending would have become apparent in December.
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