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

Drawing on analysis from Kelvin Davidson of Cotality, falling interest rates are fueling a significant rise in mortgage lending, which has grown for 10 straight months.

First home buyers are a key driver, taking advantage of low-deposit lending and more flexible bank criteria around LVR and DTI ratios. While money is more available for qualified borrowers, the housing recovery's strength will depend on broader economic and employment improvements before it gains significant momentum.