Average Loan to Valuation Ratios flatline after trending lower

Discussion in 'Loans & Mortgage Brokers' started by wombat777, 30th Nov, 2016.

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  1. wombat777

    wombat777 Well-Known Member

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  2. aroe

    aroe Active Member

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    But, and please excuse my ignorance, is this a result of not only capital growth on these dwellings, but also the fact that buyers in 2014-2016 were likely coming into these new transactions with a lot more cash, after the strong growth seen in this period?
     
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  3. larrylarry

    larrylarry Well-Known Member

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    Probably. and probably people are paying down debt at a greater rate.
     
  4. tobe

    tobe Well-Known Member

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    My reading of it suggests this is the lvr at application, not after they have spent some time paying it off. Maybe more people are refinancing after they have paid a bit off the original loan and that was captured? It's not very clear to me.
     
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  5. vbplease

    vbplease Well-Known Member

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    That's correct, it's at application.. So the bigger deposits must be from additional equity from growth and tightening in lending?
     
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  6. RetireRich101

    RetireRich101 Well-Known Member

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    But but tighten happens last 12-18mo, but trending downward start 2013?
    Could it be that people are refinancing (for lower rates) but does not want to bump up lvr even though their property value increased?
    So many butts from a graph...
     
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  7. larrylarry

    larrylarry Well-Known Member

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    Yes, correct, it's at application. could be a combination of the factors mentioned above. Will this be of some comfort to the banks?
     
  8. MTR

    MTR Well-Known Member

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    banks already pulling the trigger
     
  9. larrylarry

    larrylarry Well-Known Member

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