Shifting tides: lower interest rates begin to fuel a hotter lending market

Expert analysis from Kelvin Davidson of Cotality shows falling interest rates are fueling a rise in mortgage lending, which hit $7.6 billion in April. This marks the 10th consecutive monthly increase.

First home buyers (FHBs) are a major force, with nearly 46% in April securing loans with less than a 20% deposit. Banks are showing more flexibility on loan-to-value ratios (LVRs) and debt-to-income ratios (DTIs). While money is available, the recovery may remain slow until the economy improves.