You will find its no so much the banks tightening as they are in the game to lend money out.
The mortgage insurers are the ones who are tightening their reins more so.
Now with a lowdoc loan for example
Genworth insurance.....wanting to borrow over 60% and you have a default, even the smallest of defaults, and they are knocking it back on a low doc scenario.
Insurance is tightening their risk deals, the banks will always wish to lend and need to in order to make money.
But if you need LMI make sure your squeaky clean, they have also just put up their costs as well.
