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ISCOVER
Staff Reporter
Making headlines today, The Daily Telegraph has reported that Australia’s banks and non-banks are starting to feel more confident lending up to 100 per cent.
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According to the paper, non-bank lender Mortgage House is set to offer borrowers home loans equivalent to 105 per cent of the property’s value.
The offer comes just one month after the company launched its 99 per cent LVR home loan product.
According to the non-bank lender’s chief executive officer, the 99 per cent LVR product has been incredibly successful so far. As such, the lender has seen room to capitalise on this market and thus extended the amount of money it will lend to borrowers.
But non-bank lenders are not the only ones beefing up thier maximum LVRss.
Last month, Adelaide Bank announced it would reintroduce lending up to 95 per cent LVR, while ANZ raised its maximum LVR from 95 per cent to 97 per cent for existing customers.
Similarly, Westpac has raised its maximum LVR for new customers from 87 per cent to 92 per cent.
The major said falling unemployment and the strong economy were behind its decision to reverse the cuts it made in January.
"This change reflects our growing confidence in the economic environment, reflected in the low level of delinquencies for this market segment," the bank said.
