- LVR changes for new Home/Investment Home loans and Line of Credit (LOC)
From Saturday 20 March 2010 we are
• changing the maximum base Loan to Valuation Ratios (LVRs) for new Investment Home Loans (including Top Ups) and new LOCs; and
• introducing new requirements for existing and new Home/Investment Home Loan/LOC and Top Up customers borrowing for the purpose of 'personal investment'.The new maximum base LVRs are:
• 90% for new Investment Home Loans (including Top Ups) except where one of the loan purposes is personal investment then the maximum LVR is 80%
• 90% for new Lines of Credit (including Owner Occupied/Investment) except where one of the loan purposes is personal investment then the maximum LVR is 80%.
• 80% for loans where the loan purpose is 'personal investment' (including existing and new Home Loan/Investment Home Loan/LOC/Top Ups.)Richard Taylor | Australia's leading private lender
Worth pointing out that the 80% restriction for personal investment relates to 'not property' transactions. E.g. if purpose is selected as 'purchase an investment property' then you are fine at 90% plus LMI.
CBA still has no cash out policy for lines of credit at 80% and lends 95% plus LMI for existing customers buying owner occupied properties. They are almost writing 50% of all loans in Australia at the moment –
Do the other 3 majors still accept 95% + LMI?
No
NAB Do thru their 4 start brokers (95% less LMI)
Anz current max 90% less LMI but they are looking at pushing back into the 95% landscape.
Westpac – Only for existing customers otherwise 87%.
Still a few non major lenders offer such a product.
Richard Taylor | Australia's leading private lender
Cba do 95% plus lmi to a max of 97% total: if you’ve had a credit facility for more than 6 months with good conduct. Credit card is the easiest qualifier – even if you havnt used it …
Must be owner occupied transaction – investment is 90%
Might be a stupid question but how does the bank know whether you live there or not? Could there not be a reason that you had intended to move in there but it becomes unfeasible and you dont?
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