end of 95% LVR loans?

[Witzl]

Deposit verifications
Applicants must contribute a minimum of 5% from genuine savings for owner occupied housing loans or 10% from genuine savings for investment property loans.

Genuine savings is to be verified by copies of a minimum of three months of bank statements. Where genuine savings is equity accumulation in real estate, this will be verified by a valuation.

Genuine savings cannot be a windfall or gift.



Can be shares, cash at bank etc.

Equity drawn from a LOC or refi is also acceptable

Thanks Rolf - kudos on the way
We are providing 5% deposit from a redraw facility - so i guess we pass that test

 

[Rolf Latham]

u do

ta
rolf

 

[373au]

Which could be a reason why CBA is now doing a self-insurance it would seem...

From the bulletin issued today

Low Deposit Premium (LDP)
Recent legislative changes allow the Bank to hold the capital aside and cover its own lending rather than take out Lender’s Mortgage Insurance (LMI).

Benefits include:
o LDP is automatically charged on selected new, top up and refinance loans
o LDP uses the same premium rate as LMI however no Arrangement Fee or Stamp Duty
will apply
o LDP saves time by removing the need to wait for approval from Mortgage Insurers.

Aside from the higher revenue that CBA'll be making from the premiums too. Gooood stuff?

This goes hand in hand with why CBA as of this week have added 1.5% when working out loan repayments as a sort of stress test, since they are now self insuring they are more cautious of the ability of borrowers to repay.