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Westpac and RAMS Home Loans both moved this week to tighten lending policies with a cut to their maximum LVRs.
After today, new Westpac customers will be eligible for a maximum LVR of 92 per cent; genuine savings of 5 per cent will also be required.
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Existing Westpac customers will still be permitted to borrow up to 95 per cent LVR.
RAMS Home Loans’ maximum LVR will also reduce after 5.30pm today to 90 per cent. All borrowers that require mortgage insurance will also now need 5 per cent genuine savings as part of their deposit.
The reduction to RAMS’ maximum LVR comes only several weeks after the lender withdrew its no deposit home loans and reduced its maximum LVR to 95 per cent.
A spokesperson for the traditionally first home buyer focused lender said the new credit policy had been introduced “to maintain a responsible lending approach and long-term view to risk management”.
