Credit crunched in Sydney and Melbourne ‘mortgage rings of fire’

Via Domain:

With the bank forecasting house price falls of up to 15 per cent, Mr Hand was asked if this meant ANZ would limit loan-to-valuation ratios (LVRs) in Melbourne.

Mr Hand responded that the 15 per cent fall forecast was a “worst case scenario” but it would impose LVR limits on some postcodes, and there were parts of the country where it would not lend more than 80 per cent of a property’s sale price. He said for some luxury properties it would limit LVRs on new loans to 70 per cent.

There are 959 words left in this subscriber-only article.

Start your free 14-day trial today!

Comments are hidden for Membership Subscribers only.