PHOTO: The credit squeeze is forcing people to fork out bigger deposits to get a home loan approved. ABC News: Nic MacBean

A new crackdown on property lending has emerged in the wake of the Banking Royal Commission, with borrowers now being asked for deposits of up to 30 per cent and banks throwing greater scrutiny on location and living expenses when assessing loans.

Key points:

  • Data showing the riskiest suburbs in each city has been revealed
  • Location is a factor banks are increasingly looking at when assessing home loans
  • Finance experts say the current environment is particularly hard for borrowers

The pull back on new finance comes in the wake of a scathing assessment of the nation’s banks delivered by Commissioner Kenneth Hayne.

But the squeeze on credit has coincided with tumbling house prices on the east coast, creating what analysts have branded a “perfect storm” for borrowers trying to access finance.

While the biggest changes to lending standards happened between 2015 and 2017, banks have continued to bolster their assessment processes, now giving a specific focus to the living expenses of borrowers.