One third of new home loans have very high LVRs

Of the 79,012 new residential term loans approved in the June quarter, 13.5 per cent had loan-to-valuation ratios of above 90 per cent according to the Australian Prudential Regulation Authority.

Another 19.3 per cent of loans approved in the June quarter had loan-to-valuation ratios of between 80 per cent and 90 per cent.

Only 572 bank loans (0.7 per cent) were low-doc loans. The average loan size of outstanding residential mortgages was $230,000, compared with the average size of a new mortgage of around $300,000.

Source: Banking Day