St George Bank may be making the riskiest home loans of any bank.St George late last month made no-deposit home loans easier to get. The bank lifted the maximum value of no-deposit loans it is willing to make to $750,000, cut the interest rate on no-deposit loans to 8.14 per cent and reduced the "loan extension fee", the notional insurance premium charged on this class of loan for two thirds of applicants, to a shade more than two per cent.This means St George is happy to carry a higher risk for a lower return at the extremes of its home lending business. The bank is making these pricing and feature decisions at a time when interest rates on consumer lending are rising (though not, yet, on big bank mortgages) and growth in demand (or is it the supply?) of credit is in retreat across the economy.Speeding up processing time appears to be one rationale for the changes as well as the need to look cheaper and more flexible than competing loans.Not that many contest no-deposit lending with St George. Most major banks offer no-deposit loans though they don't much emphasise the fact, as do Wizard Home Loans and ING (through the mortgage managers Better Option Home Loans and QuickDirect).St George has relied upon higher margin, niche home lending products to underpin its growth in the home loan market for several years. No-deposit loans represented six per cent of St George Bank's home loan settlements in the year to September 2007.