CBA lowers LVRs on a range of loans

LVR changes for new Home/Investment Home loans and Line of Credit (LOC)

From Saturday 20 March 2010 we are

• changing the maximum base Loan to Valuation Ratios (LVRs) for new Investment Home Loans (including Top Ups) and new LOCs; and
• introducing new requirements for existing and new Home/Investment Home Loan/LOC and Top Up customers borrowing for the purpose of 'personal investment'.

The new maximum base LVRs are:
• 90% for new Investment Home Loans (including Top Ups) except where one of the loan purposes is personal investment then the maximum LVR is 80%
• 90% for new Lines of Credit (including Owner Occupied/Investment) except where one of the loan purposes is personal investment then the maximum LVR is 80%.
• 80% for loans where the loan purpose is 'personal investment' (including existing and new Home Loan/Investment Home Loan/LOC/Top Ups.)
 
please excuse my lack of knowledge here .... but what's a 'personal investment'? and how is it different to any other investment that would require the same Investment Home Loan?
 
Interesting Rolf.....I think that if you have an existing track history with CBA...they will still lend 95% plus LMI capitalised.

My understanding is that like the Westpac policy....this applies to new borrowers.
 
Personal Investment relates to purchasing shares or the like. This ruling is for both new and existing.
Ip loans now down to 90+ (92% with LMI) for BOTH new and existing.

It certaining makes the need for having the CBA on your panel more and more pointless until they start sharpening the pencil and redesigning their MISA a/c IMO.


Regards
Steve
 
More to do with availability of funds than credit risk though

Pretty much the same reasons Wesuck brought theirs and the higher rates in, and stopped the RAMS broker channel.

Trying to slow lending growth.

No point selling mortgages if u cant make a buck doing so


ta
rolf
 
Rolf,

do you think the funding pressures are only on the WPC and CBA? I mean are ANZ and NAB feeling it all? What is the likelihood of them following suit?

I wonder the outcome should credit markets dry up further, I mean how would rationing by these 2 effect prices?

Cheers,
David
 
do you think the funding pressures are only on the WPC and CBA? I mean are ANZ and NAB feeling it all? What is the likelihood of them following suit?


Cheers,
David

Anz are increasing their lending to 95% again very soon.... They want to regain some of the market share they lost to the other banks.

Regards Jason.
 
NAB have always been at 95% lvr for their 4 Star Brokers.

I hear Adelaide Bank have some interesting lodoc changes lined up in the next week or so and are getting aggressive again.
 
With more and more banks lowering their LVR's will this drive up rents as less investors will qualify for loans to be purchased as investments?
 
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