In the past couple of weeks we have noticed senior bank staff in the newspapers indicating a willingness to lend. Further evidence of this is seen today with ASB easing its home loan lending criteria. Namely they have reduced the internal interest rate used to calculate a clients home loan servicing ability, or in other words, affordability. This has a direct effect on the calculation that the bank is willing to lend you based on your income level.
Effectively your income will now support a larger loan amount today with the ASB than it did yesterday. The bank had raised this interest rate back in May 2009 as a result of the general nervousness of that time, and its reduction today, is further evidence of home loan lending criteria improving.