Home owners have less equity
Commonwealth Bank offered confirmation, of a sort, that home loan prices are in decline across the board in Australia. The bank published a slide that shows that loan to valuation ratios on home loans, at current market value, are higher now than when the loans were originated. The bank said current LV R ratios were higher in aggregate for all loans with equity of 20 per cent or less, and for all loans with equity of 40 per cent or more. The CBA analysis showed that loans where the borrower's equity was worth between 20 per cent and 40 per cent of the dwelling's value in fact had a lower current loan to valuation ratio than at origination.