Apologies if this has already been posted but today Adelaide Bank introduced a 95% + LMI loan for owner occupied purchases.
It's a good product for FHBs with a small deposit. Another good feature is that LMI isn't capped (most lenders offering 95% loans will cap at 97%). The variable rate is on par with the majors at 6.74%.
For investors, it's nothing to get excited about – the deal only applies to owner occupiers on a P&I basis.
Cheers,
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Yeah but these deals are getting written every day of the week with CBA – – all you need is to have had a CBA credit card for more than 6 months to be an CBA ” existing lending client”. Other banks are also doing similar for existing clients…
Difference is CBA you don’t need LMI to approve the deal…
I don’t think this will open up any markets – it’s nothing new!
You don't need to be an existing client.
LMI is uncapped.
Those on a probationary period with their employer may be considered.
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Still nothing new. CBA is an example. Westpac do them on a case ny case. So do NAB.
If you don’t have a connection with a major e.g. No cards etc :- you are a minority.
If you are a minority there are already lenders filling this gap.
95% with ad bank is not opening any market not already open – just another bank in an existing space – subject to the mortgage insurers – tight as a mouse in panties.
All up it’s good but it will take losening buy the majors to make a difference.
This is an Abbott style – shandy with 70% lemonade and 30% light beer…
I agree with Banker the email arrived last week i took a look at it and then filed it accordingly thinking well nothing new there.
Admitedly the rate is par for the course and i do like Adelaide Bank for a lot of other reasons but just couldnt convince myself it will set the world alight.
Richard Taylor | Australia's leading private lender
Mortgage House are introducing a 99% LVR loan too
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Hi Terry
It's interesting that you hear in the media how the availabilty of finance is becoming more difficult, but the major banks will give you 95% LVR no problems with several of the small lenders moving back to 95% + home loans…
Matt
True Matt but many will fall over on Credit scoring.
Richard Taylor | Australia's leading private lender
Do any of these higher LVR loans apply for IP's or are we only talking PPOR's?
Andrew
itsandrew
Go as far as you can see and you will see further.
Matt_Arnold wrote:Hi TerryIt's interesting that you hear in the media how the availabilty of finance is becoming more difficult, but the major banks will give you 95% LVR no problems with several of the small lenders moving back to 95% + home loans…
Matt
I went in to one of my banks yesterday to talk about refinancing a property and bringing the loan over to them. The bank manager, whom I know reasonably well, came out and kissed me on the cheek and told me how hard the lending manager would work to try to get the loan over the line. When I spoke to the lending manager (whom I also know reasonably well) I felt like I was just about begging for the money. All I want is a low doc 60% LVR on my PPOR. It's not that hard. Yet I still left feeling like the bank wasn't going to be able to do it.
Just because they advertise products, doesn't mean they are going to give them easily.
Cheers
K
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