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Banking royal commission impacting property prices as lenders tighten the rules

The banking Royal Commission is having an impact on property prices, as a result of tighter lending conditions.

Housing prices have dropped for the ninth consecutive month and are down more than 1% since last September.

Deloitte Chief Economist Chris Richardson tells Ross Greenwood changing behaviour by the banks is playing a role.

“These days the big banks are dotting I’s and crossing T’s in a way that they seemingly weren’t before and it means that you get the same borrowers… getting a substantially smaller loan.”

“No yet dangerous but certainly one of the things you should be keeping an eye on.”

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