All Topics / Finance / Westpac and LMI

Viewing 7 posts - 1 through 7 (of 7 total)
  • Profile photo of Mortgage HunterMortgage Hunter
    Participant
    @mortgage-hunter
    Join Date: 2003
    Post Count: 3,781

    Westpac shrinks minimum home loans deposit
    The Australian 07/02/05

    Westpac Banking Corp will allow borrowers to capitalise the cost of mortgage insurance in the loan, rather than have to come up with this bank fee in addition to their deposit. This means the bank will effectively increase its maximum loan to valuation ratio on new home loans to 97 per cent from 95 per cent. Borrowers must still demonstrate “genuine savings” of at least five per cent of the value of the property. The revised approach does not apply to low doc loans.

    Simon Macks
    Interest Free Home Loan Agent
    [email protected]
    0425 228 985

    Please email me rather than using the PM service here.

    Fully Accredited With Derivex LTD and IFHL PTY LTD

    ***Ask about our Interest Free Home Loan***

    Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.

    Profile photo of SpankySpanky
    Member
    @spanky
    Join Date: 2004
    Post Count: 102

    As I understand, ANZ already does this. I’m not sure about any of the other major banks, however.

    Age doesn’t negate effort – you can never be too young or too old.

    Profile photo of Alistair PerryAlistair Perry
    Participant
    @aperry
    Join Date: 2004
    Post Count: 891

    Colonial do this also.

    Profile photo of Stuart WemyssStuart Wemyss
    Member
    @stuart-wemyss
    Join Date: 2003
    Post Count: 598

    Yes, there are many lenders that do this. Westpac is just the most recent lender to offer this (policy changed last week). 97% LVR up to a maximum loan amount of $500,000.

    Cheers

    Stu

    Profile photo of MrVipMrVip
    Member
    @mrvip
    Join Date: 2004
    Post Count: 28

    so explain this to a dummy guys, if can save 5% of what my house is worth and the back see’s this they will lend me 97% of the house’s value?

    A guy on his horse rides into town on friday, three days later he leaves on friday, how can that be?

    Profile photo of brahmsbrahms
    Participant
    @brahms
    Join Date: 2004
    Post Count: 485

    mr vip

    whats being discussed is…

    with a 5% deposit, genuine savings, the bank will now allow you to capitalise (add too the 95% loan) the cost of mortgage insurance – that is, to a maximum overall % of 97%.

    what does this mean, it means you don’t have to pay the MI upfront, you pay for it in the loan.

    westpac have just come on board with this policy – which may be new for them, but old news for lots and lots of other lenders (sort of a shame they missed the property boom with that one, oh well…)

    cheers

    brahms
    CALL NOW…adults only (boys and girls ask mummy or dad first) ~~ 1900 hot broker ~~

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213

    Mr VIP. You will also need money for closing costs – about 5% of PP.

    Terryw
    Discover Home Loans
    Mortgage Broker
    North Sydney
    Click below to email me

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

Viewing 7 posts - 1 through 7 (of 7 total)

You must be logged in to reply to this topic. If you don't have an account, you can register here.