Reserve Bank loosens lending restrictions

Prospective property owners could find it a little easier to secure a new home loan, after the Reserve Bank announced yesterday that it is easing the loan-to-value ratio requirements. However, these adjustments are minor and, given the other factors currently at play in the housing market, we don’t expect to see any resurgence in house prices or house sales. The lack of any changes to retail banks’ internal lending conditions and criteria mean there will only be an effect at the margins.