Today, CoreLogic/QV released the first batch of data relating to Investor Lending at 70% LVR limits since the new limit was introduced on January 1 this year.
It’s interesting to see that, on the face of it, the introduction of 70% LVR Lending (up from max 65% LVR limit) has had little measurable impact on the level/demand for lending from residential investment borrowers.
In-fact, as a proportion of total new lending, the demand for residential investment lending has continued to decline whilst the level of owner-occupier lending has increased year on year. Interestingly the proportion of lending to First Home Buyers is as high as it has been at any point in the past 15 years.
So with further OCR cuts widely expected (next OCR announcement is on the 7th August) and some strong sentiment that there may also be some relaxation in the LVR “speed limits” and potential LVR levels later in the year, on the face of it, it seems the market is fairly stable - particularly when you consider the level of mortgagee sales is around the lowest it has been for about 15 years.
Check out the full article from CoreLogic/QV here - it’s worth a quick read.