St. George is the latest lender to introduce tightened credit policies on investment loans, announcing changes to its maximum LVR.
In communication sent to brokers last week, obtained by Australian Broker
, the non-major bank announced that the maximum LVR has been reduced to 80% on any combination of loan products (investment and owner-occupied) where all security is non-owner occupied.
“St. George yesterday announced changes to the maximum LVR for Investment Property Loans, now 80%. As mentioned previously, we are making appropriate changes to ensure we are in line with a 10% benchmark set by APRA for Investment Property Loan growth,” a spokesperson for St. George clarified with Australian Broker
However, that the normal maximum LVR policy applies on investment loans where at least one security is owner occupied.
Last week, Westpac also announced an 80% LVR cap on investor loans, subject to security property occupancy.