ANZ LVR changes to Interest Only Investment loans - Medical Practitioners

For the Medical Practitioners, effective Monday 28th August, ANZ is allowing medical practitioners with investment loans with LVR over 80% to go Interest Only.

Effective Monday 28th August 2017, eligible Medical Practitioners looking for interest only investment loans or wanting a top-up on an existing interest only investment loan with ANZ will be able to borrow up to 90% LVR (previously 80% LVR). This change only applies to Residential Investment loans. The maximum LVR for all Owner Occupied Home loans with interest only repayments will remain at 80%. Refer to the Mortgage Credit Requirements guide for more information on ANZ’s LVR policy.

Good opportunity for medicos, with Interest Only loans, and LMI waivers up to 90%.

On the flip side, the interest rate differential between IO and P&I is large.

It will be interesting to see if other lenders will follow suit, and whether lenders will allow the same for other professions like accountants and lawyers etc (which ANZ currently doesn't).

 

what is the rate?

 

oh thats good news,

better check if I have a medical degree hidden in the closet

 

Fairly standard rates for medico - being higher LVR they usually won't go as deep on discount but it's a balance between that and the LMI component.

 

We have run a bunch of scenarios on Friday with rates and ANZ.

Doesn't look like the discounting changes too much whether it's 80 or 90 LVR with ANZ at the moment, but does move a bit based on IO or P&I. P&I 90% loans getting discounts of around 1.2-1.3% depending on loan size, with IO discounting dropping to about 1.1.

They do of course change the pricing levers depending on market conditions - so it may be different come next Friday.

 

thanks @Redom

I believe ANZ primarily base discounts on the total borrowing, rather than LVR

 

whats the deal all of a sudden?

westpac dropping rates
anz allowing 90% lvr for medicos

 

They're getting under the regulator caps so they are able to loosen some of the fringe restrictions they made or pricing to try entice more business. It's not a loosening of borrowing capacity policy, but more related to the investor/IO caps.