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

Lower interest rates are fueling a noticeable rise in mortgage lending, according to analysis from Cotality's Kelvin Davidson. New lending reached $7.6 billion in April, marking the 10th consecutive monthly increase and a clear sign of growing borrower confidence.

First home buyers (FHBs) are a major force in this market, with many taking advantage of low-deposit lending options. Banks are showing increased flexibility on both loan-to-value ratios (LVRs) and debt-to-income (DTIs), making it easier to secure a loan.