Banks are clearing a backlog of lending requests after 'unacceptable' delays of up to five weeks, which caused stress for borrowers before Christmas.  

A significant drop in interest rates late last year resulted in a surge of new home loan applications and refinancing and restructuring requests, according to mortgage brokers.  

Loan market advisor Michelle Isemonger says the weeks before Christmas are always a busy time - but December's OCR drop inspired this notable increase in applications.

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