Westpac's credit scoring is quite good unlike say NAB @ 95%. The issue with Westpac is that if the deal is outside the assessor's delegation and it goes to credit AKA the graveyard then it will encounter issues.With ANZ you'd have to be an existing customer (6 months +, CC will do) to get 95er loans.
Westpac group are a good bet, but will be credit scored v.harshly so the other parameters will need to stack up.
The 88% comes from the fact that quite a few lenders put you into a different price and assessment category if you capitalise LMI above 90%.Slight sidestep off topic. But is 88% still a favourable LVR to get to with all the new hurdles for reducing LMI? Obviously 80% is best to avoid paying LMI altogether, but some Lenders making the new norm 90%, 88% is not too much further to stretch. . .
I see. I'm trying to punch one through with NAB at the moment. Managed to get the Application in on the Wednesday before the Friday deadline for changes. Capitalised LMI puts it at 91.3% or thereabouts, thus attracting a "penalty" IR of 4.79% to go above 90%. Might be worth my while long term to put in a little extra to keep it at, or just under 90%.The 88% comes from the fact that quite a few lenders put you into a different price and assessment category if you capitalise LMI above 90%.
For example, with the CBA you can borrow 90% and capitalise the LMI above that (to roughly 92.3%) with no adverse affects.
With the NAB and many others, you can borrow 90%, but if you add the LMI above this you get higher rates and nastier credit scoring. You probably wouldn't bother. As a result, it tends to work well with these lenders if you borrow 88% + LMI. The total LVR tends to be just below 90%.
There is a bit of a savings benefit to 88% base LVR as well.