One non-bank lender has increased its maximum loan-to-value ratio to 95 per cent.
Effective from today, National Finance Club will improve access to finance for first home buyers, lifting its LVR by 5 per cent.
Existing borrowers who want to refinance can also access a greater portion of equity in their homes as NFC raises the LVR on these loans from 85 to 90 per cent (plus capitalised LMI).
NFC general manager Andrew Clouston said the offers are a significant step towards making funds more widely available for existing borrowers and potential purchasers.
“These are very competitive offers designed to help first home buyers take that leap into home ownership sooner by requiring a smaller deposit,” Mr Clouston said.
“It will be a welcome move around the country as rising interest rates have had a significant impact on this section of the market. The reduced LVR for refinanced loans also provides a great opportunity for home owners wishing to unlock a greater portion of equity in their homes to capitalise on investment opportunities or to renovate their current home.”
In addition to the increased LVRs, Mr Clouston said the company’s in-house credit team could approve the loans internally, making the process smoother and faster for brokers.