ING and Macquarie Bank are among the latest lenders to announce they are restricting lending to borrowers linked to industries hit by the pandemic.

The changes will apply from Wednesday.
Other lenders including Macquarie Bank, Bluebay Home Loans, Auswide Bank and Gateway Bank are also tightening their lending in response to the pandemic downturn.
Macquarie Bank is introducing new credit controls for borrowers from Thursday.
Loans greater than 70 per cent the maximum debt will be capped at six-times income where the loan-to-value ratio is greater than 70 per cent of the property’s value. In addition, equity release or cash outs, which is borrowing against the value of the property, are banned for debt consolidation loans.
“This is a very difficult time for the many Australians impacted by COVID-19,” the bank states. “Our approach is intended to support new borrowings while also ensuring customers are able to meet their loan repayments without undue hardship.”
Bluebay, a boutique Perth-based lender funded by Adelaide Bank, is imposing new terms on self-employed and bridging finance applicants.
For example, those seeking bridging finance will need an unconditional contract of sale on the existing security.
Others are increasing deposit sizes, tightening scrutiny of business activity statements and lowering the percentage of less stable income, such as commissions and bonuses, considered as income for a loan application.
ING is lowering bonus, commission and overtime income assessed from 80 per cent to 50 per cent for those not employed in essential services.
Casual or contractor income will not be assessed for servicing investment loans.
It will also require the most recent evidence of rental income to ensure tenants are continuing to make payments.
In addition, cash outs will not be available for self-employed workers. ING said its list of industries affected by the virus is “not exhaustive” and each application will “take into account individual circumstances”.
Last week, La Trobe Financial said it will cancel some residential and commercial real estate loans it had approved, partly in reaction to government-enforced rent holidays and moratoriums on evictions in response to the coronavirus.
The Melbourne-based national lender has said it is reviewing its existing pipeline of credit applications, including pre-settlement loans “that had been previously approved”.