Lenders are discreetly imposing tough new borrowing conditions that are reducing the amount property buyers qualify for by thousands of dollars, excluding many buyers from the market who qualified a few months ago, according to Mortgage Choice, the listed broker.
Conditions used to assess a property loan are being tightened so that living expenses are increased, assessable incomes reduced and the maximum amount borrowed cut in some cases by more than 10 per cent, the company, which has 570 brokers across the country, said.
Borrowers who sought pre-approval for a loan six months ago before looking for a new property are being told their home loan application expired and no longer qualifies, it claims.
“This is squeezing a lot of homebuyers out of the market,” said Jessica Darnbrough, a spokesperson for Mortgage Choice, the nation’s largest network of mortgage brokers.
Mortgage Choice says lenders are tightening home loan rules again - The Australian Financial Review
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