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High LVR caps 'creeping in' to market

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Australian Broker | 13 Nov 2013, 07:00 AM Agree 0
Higher LVR caps are seeping into the mortgage market, but is it a case of buyer need - or lender greed?
  • Sigh.... | 13 Nov 2013, 09:39 AM Agree 0
    LVR's were higher than 95% prior to 2008; and that was in an era where valuations were above board 'real values'. Now you get a valuation well short of the properties real value/sale value. Hence a 95% lend is in reality a much lower LVR.

    In many cases the 'Bank Valuation' is now causing clients to fall into LMI territory; but a 'real value' would see them remain out of LMI territory. attracting premiums where they shouldn't apply.

    So much for legislation protecting the consumer.
  • Country Broker | 13 Nov 2013, 10:38 AM Agree 0
    Old news , Try and get a 95% LVR done , they must meet the highest possible credit standards !! This is not news it old news .
  • Positive Broker | 13 Nov 2013, 12:52 PM Agree 0
    Enough of the scare campaigns. I have done a few 95% loans and dare I say 100% prior to the GFC. As long as they are for the right borrowers, I.e. young people with good employment prospects they are fine. My arrears figures back this up. Also 5% plus costs in Sydney is at least $30k. That's a fair bit of hurt money for a young family.
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