Mortgage lenders continue to tighten lending criteria

According to a study by RateCity, most of the lenders in Australia show no signs of easing their lending criteria. Research of more than 2,000 home loans has found a decline in the number of home loans with an LVR of 95% or above.

The report found that there were 1,079 home loans with a LVR of 95% available in May 2010, compared to 1,110 in  February 2010. For home loans with an LVR of 98% or more, there was only one mortgage loan recorded in May 2010, compared to 20 home loans in February 2010.