Banks are starting to curb risky home loans, limiting the number offered to homebuyers that have deposits of less than 5 per cent, according to Fairfax Media.
Financial comparison website RateCity discovered the percentage of loans in its database with a maximum loan-to-valuation ratio (LVR) of 95 per cent or more has dropped from 73 per cent to 69 per cent over the past 10 months, indicating lenders are less willing to take risks as the property market heats up.
''That's quite an interesting decrease in a relatively short period of time,'' RateCity chief executive Alex Parsons said of the percentage drop, according to Fairfax.
While the data doesn’t highlight the actual loans taken up by homebuyers, it does show what banks are offering, with current numbers now in line with those from 2011-12.