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High risk LVR lending remains high

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Australian Broker | 27 Feb 2014, 06:28 AM Agree 0
More than one third of all loans at the end of last year had a loan to value ratio of greater than 80%, the latest APRA data shows – but does Australia need to follow in NZ's footsteps and reduce lending to risky mortgagees?
  • Really? | 27 Feb 2014, 10:21 AM Agree 0
    Well he's a 'commentator', so clearly would have more idea than those of us in the industry.
    Why not convert to the Indian method of making borrowers have 90% deposit - then the LVR's would be a low risk 10%.
    Better still, why not ban first home buyers altogether, less risk again.
  • Low Risker | 27 Feb 2014, 11:06 AM Agree 0
    Really? I Agree with your comments and we could also lower the risk by only lending to people can provide a guaranteed income, guaranteed to stay together, guaranteed to stay healthy, for the life of the loan. This will also lower risk. It's interesting how a lower LVR reduces the risk of arrears and defaults, I have always see these being caused by lack of income or cash flow and not by higher LVRs??
  • Broker | 28 Feb 2014, 08:11 AM Agree 0
    The only reason low lvr loans default less IMO is because people can sell or refinance out of trouble. Not much correlation to credit worthiness.
  • oldBroker | 28 Feb 2014, 11:30 AM Agree 0
    Wonder if anyone can answer if the APRA data is public-domain?
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