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

According to Kelvin Davidson of Cotality, lower interest rates are now driving a noticeable rise in mortgage lending. New lending is up for the 10th consecutive month, with First home buyers (FHBs) being a major force.

Banks are showing increased flexibility with lending criteria. Many FHBs are successfully securing loans with less than a 20% deposit. There is also more leeway for borrowers with higher loan-to-value (LVR) and debt-to-income (DTI) ratios, showing that money is available for qualified buyers.