EXCLUSIVE | ANZ overhauls home loan approvals
ANZ bank has said it will no longer lend to people who have a debt to income ratio greater than nine times.
Money News obtained a document showing ANZ will not lend to customers with extremely high debts.
Under the new policy customers with a debt to income ratio greater than nine times will be rejected.
For example, if a customer’s gross income is $100,000, they will automatically be rejected if they apply for a loan of more than $900,000.
Already, banks including the Commonwealth Bank say any loan with a loan to income ratio of more than seven times must be manually approved.
ANZ general manager of home loans John Campbell tells Ross Greenwood the policy will protect the customer.
“There are very, very, few instances where customers actually get anywhere close to being nine times geared.
“The bulk of the loans that come through our applications are at levels way, way, below that nine threshold.”
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