A poster at an NAB branch advertises a 1.89pc two-year fixed rate with a house in the image.

Is it getting harder to get a big mortgage?

Two of Australia’s largest banks have moved to curb risky home loans as the regulator revealed it has warned some institutions to cut back on risky loans.

This week, ANZ told mortgage brokers and its bankers that from June 6 it would stop lending to borrowers who would owe more than 7.5 times their annual income.

That’s less than a previous limit of nine times the income.

Earlier this month, NAB lowered its debt-to-income (DTI) limit from nine to eight times its income.

As a result of these movements, the maximum amount a homebuyer or someone who refinances can borrow from what was previously possible is reduced.

#harder #big #mortgage

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