CBA Tighten the screws further with LVR reductions

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 - richard@tayloredfinancialsolutions.com.au Tel: 07 3720 1888
Residential Mortgage Broker providing structured home loan advice for investors and owner occupiers all over Australia.
Thinking of buying your next investment property using a SMSF. Email me for a copy of my SMSF EBook.

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.

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 - richard@tayloredfinancialsolutions.com.au Tel: 07 3720 1888
Residential Mortgage Broker providing structured home loan advice for investors and owner occupiers all over Australia.
Thinking of buying your next investment property using a SMSF. Email me for a copy of my SMSF EBook.

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?