An Australian lender has announced an LVR cap on all of its new investor home loans as it continues to manage its investor loan growth.
On Friday CUA confirmed that for any investor home loan applications submitted from today, a maximum LVR of 70 per cent will apply.
“This change means a consistent maximum LVR now applies across all of CUA's variable and fixed rate investor loans,” CUA said in a statement.
“A maximum LVR of 70 per cent has applied since July 2015 for residential investors taking out the CUA Fresh Start Variable Home Loan.”
CUA highlighted that it has already taken a number of steps to slow its growth in investor lending, including the introduction of investor interest rates, and a review of their maximum LVR for investor loans earlier this year.
“While these actions are helping to slow investor lending, it's important that CUA continues to proactively manage our investor growth,” the group said.
“There is no change for new or existing owner-occupier home loan customers. Any customers with an existing CUA investor home loan will not be affected by these LVR changes on home loan rollovers or product switches.”
CUA said residential investor home loan applications submitted before today will be assessed under the existing LVR rules.
James Mitchell has over eight years’ experience as a financial reporter and is the editor of Wealth and Wellness at Momentum Media.
He has a sound pedigree to cover the business of mortgages and the converging financial services sector having reported for leading finance titles InvestorDaily, InvestorWeekly, Accountants Daily, ifa, Mortgage Business, Residential Property Manager, Real Estate Business, SMSF Adviser, Smart Property Investment, and The Adviser.
He has also been published in The Daily Telegraph and contributed online to FST Media and Mergermarket, part of the Financial Times Group.
James holds a BA (Hons) in English Literature and an MA in Journalism.
The non-bank lender has revealed it will expand its product and c...
The major bank saw a 45 per cent increase in mortgage application...
The non-major bank has reduced variable rates by up to 20 basis p...