ING Direct has released new LVR parameters, with dramatic drops flagged for investors in New South Wales.
In a document seen by The Adviser, ING Direct announced that it will be making changes to its LVR parameters effective for both new and existing customers for loan applications received by the bank from 10 June 2015.
From that date, the maximum LVR (including LMI premium) for owner-occupied loans will be 95 per cent; for investment loans it will be 90 per cent; and for interest-only loans it will be 90 per cent.
Loan applications involving NSW properties will be subject to further reductions, with the maximum LVR at 80 per cent.
The document said the bank’s decision comes in response to “sustained growth in NSW property values”.
An ING Direct spokesperson confirmed that the new LVRs indicate a drop from previous parameters, which were 97 per cent (including LMI) for owner-occupied loans and 96 per cent for investor loans (including LMI).
The decision also follows a flurry of movement from lenders in response to investor lending concerns raised by APRA.