All Topics / Finance / Westpac withdraw 95% LVR

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  • Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024

    Effective 26 April 2009 the Bank is making the following Credit Policy changes:

    MAXIMUM LVR
    • Maximum LVR of 92% for new customers to the Bank
    • Maximum LVR of 97% for existing customers of the Bank Existing Customer

    AIPS must be made formal by that date

    SERVICEABILITY
    • The monthly interest rate buffer, used to assist in serviceability calculations, has increased to from 0.10% to 0.13% (+0.03%).

    GENUINE SAVINGS
    • The Non Genuine Savings product has been removed from sale
    • 5% Genuine Savings is to be validated for all:

    RAMS rumoured to follow suit Monday.

    Richard Taylor | Australia's leading private lender

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024
    Didnt take RAMS long

    Please be advised that RAMS has introduced the following changes to its credit policy for the broker channel:

    • The maximum LVR available will now be 90% (previously 95% LVR)

    • All loans where mortgage insured, will become "standard" loan applications requiring a deposit of 5% minimum genuine savings

    • Mortgage Insurance premium capitalisation is to a maximum LVR of 92% for fully documented loans (90% LVR + 2% LMI) and 82% for low doc loans (80% LVR + 2% LMI)

    What is classified as genuine savings?
    Where the LVR exceeds 80%, a 5% minimum deposit is now required which is sourced from the borrower’s genuine savings and must be verified with satisfactory evidence.

    Examples of genuine savings could include:
    • Personal savings accounts or term deposit accounts
    • Real estate equity
    • Tax refunds
    • Bonuses and dividends
    • Accessible superannuation (non-preserved portion)
    • Historical Rental Statements (New)
    • Value of Excess loan repayments (New)

    Richard Taylor | Australia's leading private lender

    Profile photo of god_of_moneygod_of_money
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    @god_of_money
    Join Date: 2008
    Post Count: 970

    Richard,

    Well.. I hope that the LVR will continue downwards to 80%… it will stabilise the current property price..

    I think sooner or later the bank(s) will do the same to the current REIT

    GPT, Stockland, CPA tc… despite their LVR is <50-60%…. but the bank(s) keep devaluing their assets price.

    http://business.smh.com.au/business/banks-suck-reits-dry-20090422-aerk.html

    Love to see re-valuation happening to residential market….

    Profile photo of JimmyJJimmyJ
    Member
    @jimmyj
    Join Date: 2007
    Post Count: 49

    Hi GOM,

    What do you mean by "stabilise the current property price"?

    Would it not be fair to say the property prices have stabalised in the past 12 months… especially in the higher end of the market?

    Cheers.

    Profile photo of RaymondBDMRaymondBDM
    Member
    @raymondbdm
    Join Date: 2008
    Post Count: 32

    over-reaction IMO Richard, and Franchise is sure to follow in the next few weeks
    this will effect a lot of people, from first home buyers to people working in credit
    will be interesting to see the knock-on effect in the next couple years…

    Profile photo of danielleedaniellee
    Member
    @daniellee
    Join Date: 2006
    Post Count: 197

    Hi

    I think from a serious RE investor's point of view, 'stabilising the current property price' means removing the emotional strings pushing the offer prices upwards above what a property is reasonably valued.

    With 35-40% of all new loans issued to FHBs, the market has become quite unstable for many RE investors to handle.

    Regards
    Daniel

    Profile photo of god_of_moneygod_of_money
    Participant
    @god_of_money
    Join Date: 2008
    Post Count: 970

    Jimmy,

    I believe that our current residential property price has been inflated by 10-20%… By only lending up to 80%, it will make the price become more sensible.

    Just look at commerical properties…. the value has been slashed by up to 80%. I am saying that some of them are really blue chips commercial property (i.e. Pitt street in Sydney or Bourke St in Melbourne). So why the residential property can't be devalued by 10-20%… that is what my understand about 'stabilise the price'

    Cheers

    Profile photo of matkatmatkat
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    @matkat
    Join Date: 2009
    Post Count: 1

    Witch lenders out their are still offering 95% LVR. Can you get this with a low doc loan?

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024

    No i am sorry matkat lodoc 95 was withdraw 9 months ago and maximum lodoc is 80% lvr.

    There are still one or 2 lenders offering 95% loans and one recent lender announced they are reversing the trend and doing away with the genuine savings requirement.

    Richard Taylor | Australia's leading private lender

    Profile photo of PosEnterprisesPosEnterprises
    Member
    @posenterprises
    Join Date: 2006
    Post Count: 290

    So does Westpac stil offer .7% discount to borrowers of $500k?  Also what is the maximum LVR you can get without LMI

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024

    Post – 7% discount to borrowers of $500k – NO.

    Maximum full doc loan without LMI is 80%.

    Richard Taylor | Australia's leading private lender

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