Within the speed limit, each bank would make their own assessment of which customers received high LVR loans, based on their own criteria including other risk measures, such as debt servicing capacity, and the potential long-term value of those customers to the bank. Exemptions A number of submissions to the recent consultation have proposed targeting particular borrower segments.
But lower house prices may add stress for those people who purchased recently. They will have reduced equity, and this may limit their options to refinance. So back to our framework to monitor financial stability.