Westpac reduce LVR to 87% for new clients

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

Richard Taylor
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@qlds007
Join Date: 2003
Post Count: 12,024
January 18, 2010 - 2:24 am
Effective Wed 20th 2010 Westpac have announced the max lvrs for new clients will be 87%.
Wouldnt be that they are running out of money !!!!.
Think this could be the first of many changes over the coming months.
Richard Taylor | Australia's leading private lender
wealth4life.com
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@wealth4life.com
Join Date: 2003
Post Count: 1,248
January 19, 2010 - 10:58 pm
Yes and others are dropping down to 80% and soon less …
New investors or buyers will have to go back to the old days of a "savings account"
We have lost to concept of saving 20% of our earnings … everything is interest free or no deposit … a friends of mine 19 year old daughter just leased a 26,000.00 mini minor car … god I never even thought of doing that at 19 … this is the way of the young people today NO FINANCIAL LITERACY
Terryw
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@terryw
Join Date: 2001
Post Count: 16,213
January 20, 2010 - 2:54 am
At the risk of sound old, I agree with you wealth. Young people just want everything now.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
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Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
DWolfe
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@dwolfe
Join Date: 2009
Post Count: 1,253
January 20, 2010 - 3:03 am
Dya think it's all young people or just that their parents don't say, hang on let's think about this first! My first car cost $1000 bucks, guess what sort of car my kids are getting…yep a bomb! They also want the best house straight away, must buy THE dream house first, no forward thinking.
D
DWolfe | www.homestagers.com.au
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kennyd
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@kennyd
Join Date: 2010
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January 24, 2010 - 12:50 am
Interesting, What seems to be the general LVR for lenders at the moment?
A close friend of mine was able to borrow 97% for an IP which i thought was strange. I thought most banks were around the 90% mark at the most?
DWolfe
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@dwolfe
Join Date: 2009
Post Count: 1,253
January 24, 2010 - 1:14 am
Do a lot of people borrow at 90%? Or do most people leave a safety net of 20%? Or is the idea to borrow as much as you possibly can? We have always done 80%.
D
DWolfe | www.homestagers.com.au
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YoungInvestor
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@younginvestor
Join Date: 2003
Post Count: 377
January 24, 2010 - 2:13 am
It's okay to borrow maximum for an IP as long as u have an IO loan and an offset account (and some discipline!)
I think a lot of the younger couples have difficulty leaving their cash in the offset account and not spending it, so I have recommended P&I loans to a few people I know.
Better to have untouchable equity at the expense of a tax deduction if the cash will be spent on lifestyle items…