The latest figures from the central bank show just 4.8% of the $3.09 billion lent in January was to people with deposit of less than 20%.
That figure fell to 3.8% after exemptions, such as Welcome Home Loans and construction finance, were taken out.
Under the speed bump restrictions introduced in October registered banks could only lend 10% of their mortgages to customers who had equity of less than 20% in a deal.
Before the restrictions were introduced 25.1% of lending was to low deposit home buyers in September. The January figure is down from 5.6% in December.
However this situation is likely to change. ANZ has told brokers that it has worked through most of the pre-approvals it had on its books when the restrictions started and is now looking to do more in the low-equity space.
It said that in the next month or so it will become far more active in this market and borrowers who have a strong ability to service a loan will be welcomed. It’s approach won’t be to just existing ANZ customers.
Likwise Westpac has indicated it will be more aggressive in this market too.
