Leading mortgage brokers say banks are cautiously taking the brakes off home lending and removing extra checks on borrowers that were introduced at the height of the pandemic.
The trend comes amid an ongoing surge in new lending, but brokers say they are not seeing a rise in high-risk borrowing, and nor do they believe regulatory caps on home lending will be introduced any time soon.
Several brokers including Aussie Home Loans and its merger partner Lendi say banks have become less conservative compared with the height of the pandemic last year.
Aussie chief executive James Symond says banks had “pulled in their horns” during the peak of the pandemic, but are now taking a more “commercial” approach to credit assessments. “We are seeing a more balanced approach by the banks,” he says.
Lendi says the proportion of loan applications where lenders are requesting more information from the customer has dropped from 48% in March 2020 to 28% this year.