Customers can avail loans with less than 20 per cent deposit as the banks are easing norms related to mortgages given to prevailing economic conditions.

Some banks are even lending 80 per cent of the total value of the property. As per reports, Westpac is providing loans by lending up to 90 percent of a total value of mortgaged property.

Westpac spokesman Craig Dowling said, "The bank's success raising even local deposits and funding through retail deposits, that's going very well. So we've got the money and we're happy to look to lend it to good customers." He expressed satisfaction over stability of interest rate and property prices and termed it as a good time to enter in the market with new offers to attract home loan buyers.

Mr. Dowling further added, "For those people, first home buyers, who've maybe been thinking that they're not able to get into a house because a 20 percent equity level is assumed, we're saying don't assume that - come and have a discussion."

However, customers repaying ability will play a crucial role in extending loan under relaxed mortgage norms.

Banks are still cautious about norms and select customers after examining their previous loan repayment history besides asking for extra security or a guarantor.