Home Loans - ANZ Makes it More Difficult

If you're new here, you may want to subscribe to my RSS feed. Thanks for visiting!

Today, ANZ have announced a further tightening of lending policy and will no longer approve loans above 90% of the house value.

This is a major contraction and points to more credit “squeezing”, making it harder for new home buyers.

Additionally they have determined to no longer capitalise the Mortgage Insurance Premium, meaning the total loan will be limited to preciseley 90%. For new home buyers planning to apply with ANZ this means they will need an extra 5% PLUS the Premium. On a house value of $400,000, this means about $25,000 extra will be needed.

My thinking is that prospective new buyers should consider getting in sooner rather than later with other lenders before similar contractions are announced by other banks.