Banks cut loans to first home buyers

Many banks have cut the maximum amount they will lend to first home buyers according to a shadow shopping exercise by Deutsche Bank. Deutsche researchers cold called banks pretending to be a first home buyer with no dependants, a good income of $70,000 and a good credit history.

They found that St George had cut the maximum loan they will consider from $455,000 to $400,000. NAB will lend the least to first home buyers, with a maximum loan of just $290,000, down from $310,000. Westpac’s maximum first home loan went down by $33,000 from $479,000. ANZ has cut its maximum first home loan by $46,000 to $439,000. Bankwest cut its maximum loan by $28,000 to $442,000 while Bendigo Bank’s lending limit was also down $10,000 to $420,000.

Commonwealth Bank has kept its lending limit steady for first home buyers at $420,000. Suncorp has also not cut its lending limit, currently $450,000. Bank of Queensland is the only bank surveyed to have raised its maximum loan, by $7,000 to $425,000.

Source: The Sydney Morning Herald