In the June 2023 quarter $4.442 billion worth of mortgages were subject to 'serviceability verification waivers', and $4.157 billion were subject to 'exceptions to serviceability policy'. 

This contrasts with the previous quarter where exceptions totalled $3.764 billion; and waivers, $3,401 billion.

This represents a 30.6% uptick in waivers.

Banks are expected to apply a 3% buffer on mortgages, as outlined by APRA, meaning a 5% home loan is assessed at 8% to 'stress test' the borrower.

In the June quarter, various banks introduced serviceability buffer exemptions for those looking to refinance, including Westpac group, CommBank, and other challenger banks. 

This also corresponds with a record quarter of external refinances, totalling $70.926 billion, or more than half of the 'new loans funded' figure of $151 billion.

There has been a marked slowdown in lending for those borrowing more than six-times their income at just over $9 billion in the quarter, versus a peak of $40.6 billion in the December 2021 quarter.

There has also been a notable uptick in investors taking out interest-only home loans, up more than $3 billion over the quarter to $18.69 billion.

There was also a $7 billion jump in overall new investment lending to $47.6 billion, despite flatlining credit growth in the sector.

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