Westpac and LMI

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

Mortgage Hunter
Participant
@mortgage-hunter
Join Date: 2003
Post Count: 3,781
February 9, 2005 - 12:39 am
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.
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Spanky
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@spanky
Join Date: 2004
Post Count: 102
February 9, 2005 - 1:20 am
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.
Alistair Perry
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@aperry
Join Date: 2004
Post Count: 891
February 9, 2005 - 3:08 am
Colonial do this also.
Stuart Wemyss
Member
@stuart-wemyss
Join Date: 2003
Post Count: 598
February 9, 2005 - 3:42 am
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
MrVip
Member
@mrvip
Join Date: 2004
Post Count: 28
February 9, 2005 - 11:52 am
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?
brahms
Participant
@brahms
Join Date: 2004
Post Count: 485
February 9, 2005 - 1:15 pm
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
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Terryw
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@terryw
Join Date: 2001
Post Count: 16,213
February 9, 2005 - 1:31 pm
Mr VIP. You will also need money for closing costs – about 5% of PP.
Terryw
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