property loans


PHOTO: Banks have become much more restrictive with their lending practices.

Home buyers keen to capitalise on Sydney’s falling prices may want to go on a diet. Or learn to cook.

Housing experts have warned that lending institutions have become so strict in their assessments of prospective buyers’ spending habits they are scrutinising every dollar of expenditure.

And that includes what buyers spend on food, going out, hobbies, travel, clothes and so much more.

More frivolous spending has tended to attract the ire of banks, which have been mandated by financial regulators to be more cautious in their determinations of what buyers can afford to borrow.