By: Jessica Darnbrough
In a further sign that competition is starting to re-emerge, ANZ has recently lifted its loan to value ratio (LVR) to 95 per cent for existing customers with a strong credit history.
ANZ was the first major Australian bank to tighten its credit policy in response to the global financial crisis, lowering its maximum LVR to just 90 per cent in November 2008.
However, a spokesperson told The Adviser that the improved economic outlook has allowed the major to lift its maximum LVR back to 95 per cent.
“We have a strong risk profile in our mortgage portfolio, having chosen to sit out much of the first-home buyers' market in 2009,” the spokesperson said.
“All applications above 90 per cent LVR will require a full valuation and Lenders Mortgage Insurance included in the 95 per cent LVR cap.”
ANZ’s decision to lift its LVR for existing customers could suggest the lender wants to target the very lucrative investor market.