Forums / Getting Technical / Finance / High LVR loans coming back? 105% LVR

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

    Lately there seems to be a gradual increase in LVRs being offered.

    Now there is a report that Mortgage House are going to introduce a 105% LVR loan

    http://www.adelaidenow.com.au/money/lenders-throwing-cash-at-buyers/story-e6fredkc-1225918973988

    Terryw | Structuring Lawyers / Loan Structuring Pty Ltd
    http://propertytaxbook.com.au/
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    Lawyer, Mortgage Broker and Tax Advisor (Aust wide) http://propertytaxbook.com.au/

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

    Terry similar to the Adelaide Bank product which has been out for some months.

    95% Lvr plus secured and unsecured visa. Very responsible lending in my opinion.

    Richard Taylor | Mortgage Broker helping investors build their wealth thru property
    http://www.mortgagecapitalaustralia.com.au
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    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 David AndersonDavid Anderson
    Member
    @david-anderson
    Join Date: 2009
    Post Count: 17

    Does that 105% and 99% include LMI capitalisation or is that on top of those figures and they lend the whole 99% or 105%?

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

    Yes with AB it is plus LMI.

    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 stevo81stevo81
    Member
    @stevo81
    Join Date: 2010
    Post Count: 16

    I remember 105% mortgages several years back. If I remember correctly there interest rates are significantly higher. I also found out today that you will pay ~3k extra on mi if you cap it.

    Profile photo of BigTeddyBigTeddy
    Participant
    @bigteddy
    Join Date: 2010
    Post Count: 11

    How easy is it to get a loan with an LVR this high?

    Profile photo of Matt007Matt007
    Member
    @matt007
    Join Date: 2008
    Post Count: 259

    Talk to any American who was in property prior GFC and they'll tell stories of lenders doing exactly the same thing, and in their opinion, these types of products were what contributed to the downfall, amongst other things, but in some states, like Arizona for example, there are still repossessions going on of people's houses because they borrowed more than the value of the property which then dropped…

    On one hand I think great, the pendulum swing is coming back towards more balanced lending practices, on another I think its gone past the sensible point again..banks have gone from causing the biggest storm since the early 1900's (rant opinion of mine) to complaining that whole sale borrowing is costing them so much more while posting 20% increase in profits (Hmmm), to now realising overly stringent lending practices, especially where development is concerned, has slowed building and development to a crawl, Oooops! Hang on, if we're not lending we're not making money! Bugger! Better start throwing money out there again to recoup! After all, all we need to create more money is the promise to pay it back! Woo hoo!  

    'course its only my opinion …

    Super Profits Tax for the Banks I say!

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