Loosened LVR settings long overdue - adviser

Banks will be able to write up to 25% of new lending for owner-occupiers with a deposit of less than 20% and up to 10% for investors with a deposit of less than 30% from December 1.

Advice HQ founder and adviser David Green, who has a banking background, says the loosening of LVR ratios is long overdue as low deposit bank lending has been restricted for new to bank clients and pre-approvals even for existing customers on and off over the past year.

“Some banks are being quite brutal, and available lending is changing week-to-week, depending on what the funding profile looks like.”

Green had an existing bank client this week apply for pre-approval and after their application had been in the queue for a few days the bank’s credit policy changed and they were chucked out. “There is no client care if they can just change their credit policies within days,” he says.