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ISCOVER
Jessica Darnbrough
The days of 100 per cent lending may be long gone, according to a new poll.
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A recent survey by The Adviser, found that 72.2 per cent of brokers do not expect 100 per cent LVRs to return before the end of the year.
Of the 496 respondents, just 27.8 per cent were optimistic that 100 per cent lending would return.
St George general manager intermediary distribution Steven Heavey told The Adviser that the days of 100 per cent LVRs would not make a return in the immediate future.
Mr Heavey said 100 per cent lending posed too much of a risk to lenders.
“While Australia’s banks have improved their appetite for risk since the depths of the GFC, I don’t think they will ever be prepared to head back into 100 per cent LVR territory,” he said.
Last month, St George re-introduced lending up to 95 per cent LVR for both new and existing customers.
“Quite a few lenders have made the move back to 95 per cent lending in recent weeks and we were determined to be equally competitive in the higher LVR space,” Mr Heavey said.
St George is not alone. In the last week, both Westpac and CBA increased their maximum LVR lending to 95 per cent.
