Forums / Getting Technical / Finance / ANZ Increases LVRs

2019 Money Magnet Symposium - Discover how to make, and keep, more money and achieve a financially empowered future
Viewing 10 posts - 1 through 10 (of 10 total)
  • Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,173

    Effective Monday 6 September 2010 the maximum Loan to Value Ratio accepted by ANZ for Home and Residential Investment Loans will change to reflect the following:

    • For eligible existing lending customers, the maximum Loan to Value Ratio is 95%, with the option to finance the LMI premium up to a maximum of 97%
    • For all other customers, the maximum Loan to Value Ratio is 90%, with the option to finance the LMI premium up to a maximum of 92%

    The above changes to Loan to Value Ratio replace the policy rules that were implemented in April 2010 which allowed existing customers, who met specific criteria, to extend the LVR to 95% (inclusive of premium).

     

    New Criteria: Definition of an eligible existing lending customer

    At least one of the applicants must be an existing ANZ customer who has held a retail lending product for greater than 6 months with satisfactory credit history. A retail lending product is defined as a home or residential investment loan (including lines of credit), personal loan, credit card or overdraft facility. Existing customers of other retail products are not eligible under this policy.

     

    Eligible Home and Investment Loan Products

    Products eligible for a maximum LVR of 95% include all ANZ home and residential investment loans, excluding Equity Manager and the ANZ Portfolio Facility, which continue to have a maximum LVR of 90%.

    Product Customer Type Maximum LVR: Excluding LMI premium Maximum LVR: Including LMI premium
    Home & Residential Investment Loans:

    • Principal & Interest
    • Interest Only
    Eligible existing lending customers (existing customers who have had a lending relationship for a minimum of 6 months with a satisfactory credit history)
    95%
    97%
    New customers & customers who do not meet existing customer criteria
    90%
    92%
    Equity products

    • Equity Manager
    • Portfolio Facility
    All customers
    90%
    90%

    Additional conditions and information

    • All applications over 90% LVR require a Full Valuation
    • Total Mortgage Lending (TML) requirement of $500,000 is no longer applicable
    • Other standard ANZ credit policies apply

    Why are we making this change?

    In late 2008 ANZ tightened lending standards in response to the softening in the economic environment because as a responsible lender, we did not want to put our customers in a situation where they were over extended. As the economy outlook has improved and customers continue to manage repayments well overall, we are now in a position to moderate these standards for existing retail lending customers with good credit history. In April 2010, an interim step was taken to service a small number of customers through a manual approval process.

    ANZ are now in a position to extend this policy to a wider customer base with the full support of systems and tools. This will remove some of the restrictions imposed in the April 2010 changes. This now means that all existing retail lending customers, with a satisfactory credit history, have the option to borrow at a higher Loan to Value ratio.

    Terryw | Structuring Lawyers / Loan Structuring Pty Ltd
    http://propertytaxbook.com.au/
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Aust wide) http://propertytaxbook.com.au/

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,173

    See your broker for further details.

    Terryw | Structuring Lawyers / Loan Structuring Pty Ltd
    http://propertytaxbook.com.au/
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Aust wide) http://propertytaxbook.com.au/

    Profile photo of Jamie MooreJamie Moore
    Participant
    @jamie-m
    Join Date: 2010
    Post Count: 5,069

    More good signs :)

    Jamie Moore | Pass Go Home Loans Pty Ltd
    http://www.passgo.com.au
    Email Me | Phone Me

    Mortgage Broker assisting clients Australia wide Email: [email protected]

    Profile photo of BankerBanker
    Participant
    @banker
    Join Date: 2010
    Post Count: 371

    Sounds good. Very similar to CBA so wondering how much of this is influanced by the insurers? Do ANZ also use Genworth?

    I got a letter from another major today offering no fees If I refinance. Appl, Val, and even annual fees waived for the life of the loan! 6.68% with min loan of 50k. Interesting to see them getting more aggresive…

    Profile photo of LinarLinar
    Member
    @linar
    Join Date: 2004
    Post Count: 567

    Hi Banker

    Care to share which lender offered the refinance deal?

    K

    Profile photo of BankerBanker
    Participant
    @banker
    Join Date: 2010
    Post Count: 371
    Linar wrote:
    Hi Banker

    Care to share which lender offered the refinance deal?

    K

    CBA

    Profile photo of Jamie MooreJamie Moore
    Participant
    @jamie-m
    Join Date: 2010
    Post Count: 5,069
    Banker wrote:
    Do ANZ also use Genworth?

    They have their own LMI.

    Jamie Moore | Pass Go Home Loans Pty Ltd
    http://www.passgo.com.au
    Email Me | Phone Me

    Mortgage Broker assisting clients Australia wide Email: [email protected]

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,010

    No Anz use PMI and to me bought them back to where everyone else was.

    They were the first to reduce to 90% and the last to come back but all in all good signs.

    Banker were CBA  covering the discharge, reg fees as well ? 

    Richard Taylor | Mortgage Broker helping investors build their wealth thru property
    http://www.mortgagecapitalaustralia.com.au
    Email Me | Phone Me

    0-40 Properties in a decade with a unencumbered portfolio value in excess of $40M. Ask me for a copy of my API Interview.

    Profile photo of BankerBanker
    Participant
    @banker
    Join Date: 2010
    Post Count: 371
    Qlds007 wrote:
    No Anz use PMI and to me bought them back to where everyone else was.

    They were the first to reduce to 90% and the last to come back but all in all good signs.

    Banker were CBA  covering the discharge, reg fees as well ? 

    If you get the right banker. They were recently paying conveyancing costs. My guy has up to $500 per client to cover costs – need to be around 500k to get that though – won’t happen in the branch.

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,010

    Ok cheers.

    NAB have the same promo but wont cover Reg / Transfer costs.

    Richard Taylor | Mortgage Broker helping investors build their wealth thru property
    http://www.mortgagecapitalaustralia.com.au
    Email Me | Phone Me

    0-40 Properties in a decade with a unencumbered portfolio value in excess of $40M. Ask me for a copy of my API Interview.

Viewing 10 posts - 1 through 10 (of 10 total)

You must be logged in to reply to this topic.