Bottoming out at less than 5% of total deferrals in September, in October 90%-or-greater LVR borrowers amounted to 10% of the deferred loan book, implying more of them asked for an extension than those with larger deposits.

In the wider market, those with 90%-or-greater LVRs made up just 6% of the total loan book, according to the Australian Prudential Regulation Authority (APRA).

This is at a greater ratio than in June, where 90%-or-greater borrowers made up 5% of the loan book and 8% of deferred loans. 

APRA does not publish data on the proportion of specific risk profiles that re-enter or extend their home loan deferrals.

Buying a home or looking to refinance? The table below features home loans with some of the lowest variable interest rates on the market for owner occupiers.

Rates
Features
Fees
Other
Lender
VariableMore details
Online ExclusiveUp To $4K Cashback Includes NOV RBA Rate Increase
  • Immediate cashback upon settlement
  • $2000 for loans up to $700,000
  • $4000 for loans over $700,000
Online ExclusiveUp To $4K Cashback Includes NOV RBA Rate Increase

loans.com.au – Variable Basic Cashback Home Loan (Principal and Interest) (LVR < 70%)

  • Immediate cashback upon settlement
  • $2000 for loans up to $700,000
  • $4000 for loans over $700,000
More details
VariableMore details
Refinance OnlyApply In Minutes
  • No application or ongoing fees. Annual rate discount
  • Unlimited redraws & additional repayments. LVR <80%
  • A low-rate variable home loan from a 100% online lender. Backed by the Commonwealth Bank.
Refinance OnlyApply In Minutes

Unloan – Variable Rate Home Loan – Refinance Only

  • No application or ongoing fees. Annual rate discount
  • Unlimited redraws & additional repayments. LVR <80%
  • A low-rate variable home loan from a 100% online lender. Backed by the Commonwealth Bank.
More details
VariableMore details
  • Up is 100% owned by Bendigo Bank.
  • Up to 50 offset accounts
  • New joiners get $10 by signing up to the app using code UPHOMESAVINGS. (T&Cs apply)

Up – Up Home Variable (Principal & Interest) (LVR ≤ 90)

  • Up is 100% owned by Bendigo Bank.
  • Up to 50 offset accounts
  • New joiners get $10 by signing up to the app using code UPHOMESAVINGS. (T&Cs apply)
More details
  • Immediate cashback upon settlement
  • $2000 for loans up to $700,000
  • $4000 for loans over $700,000

More details
Important Information and Comparison Rate Warning

Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to be made on variables as selected and input by the user. Some products will be marked as promoted, featured or sponsored and may appear prominently in the tables regardless of their attributes. All products will list the LVR with the product and rate which are clearly published on the product provider’s website. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. *The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Rates correct as of December 6, 2023. View disclaimer.

As of 31 October, $88 billion worth of loans were deferred, representing just 3.3% of the banks' total loan books.

Exits also outweighed new entries for the fourth straight month, totalling $100 billion loans expiring or exiting deferral, and just $12 billion entering or being extended.

This was because as many as half of borrowers came off their six-month deferrals at the start of October.

In August, CommBank's 90%+ LVR borrowers had a 13.5% share of the total loans deferred, a figure which climbed to 15% in October. 

Newcastle Permanent also had a 24% share in 90%+ LVR loans deferred.

Bendigo and Adelaide Bank also had the highest share of interest-only loans deferred at 21%.

For investor loans, 86% of Regional Australia Bank's investor loans were deferred.

Photo by Jonathan Francis on Unsplash



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