More buyers with low deposits getting into housing market

Credit demand for housing continues to lift, growing 5.1% in the year to July.

In its latest housing update, the bank says lending to home borrowers on lower incomes appears to be rising, as is lending on properties to people without a 20% deposit.

Westpac says these trends are consistent with increasing housing demand as interest rates have declined.

“Anecdotally, mortgage advisers note the lower mortgage test rates now being applied is enabling a broader range of households to enter the market,” Kelly Eckhold, Westpac chief economist says.