Banks are approving fewer high risk home loans

Banks do not seem to be lowering lending standards as they battle for new business in the intensely competitive mortgage market.

The latest Australian Prudential Regulation Authority data shows that 12.5 per cent of new loans in the June quarter 2014 had loan-to-valuation ratios equal to, or greater than, 90 per cent. That is lower than any other quarter this year.

Low-doc loans made up only 0.7 per cent of new loans in the quarter.

Source: Banking Day