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Max LVR for PPOR

Discussion in 'Property Finance' started by B-Mac, 8th Oct, 2015.

  1. B-Mac

    B-Mac Well-Known Member

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    Hey Guys,

    Whats the current max LVR for a PPOR through the majors?

    Are they still doing 95%?

    Thanks
     
  2. Shahin_Afarin

    Shahin_Afarin Residential and Commercial Broker Business Member

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    Westpac is killing it in this space due to their PPOR book imbalance.

    97% LVR including LMI capped but its their pricing thats a weapon - they are doing 4.20% for sub $400k (97% LVR) and 4.15% for sub $600k.

    Im pretty sure RAMS are still doing 98.5% LVR for PPORs.
     
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  3. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

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    Westpac for high lvr ppor deals

    ANZ also if you're existing customer (hold a credit facility for at least last 6 months)

    Cheers

    Jamie
     
  4. Redom

    Redom Mortgage Broker Business Member

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    Can get 95 loans with the majors and quite a few others in the PPOR space, APRA appear to have made an effort not to seriously hamper this type of lending as its not really a key risk and would unfairly target FHOB who are typically high LVR borrowers.

    The difference is mainly in the capitalisation of LMI and possibly the rate loading for I/O debt - most won't allow it past 95 and would impose some sort of loading for I/O.

    More difficult in the investment space, only a couple come to mind who go to 95 there now (CBA, smaller lenders like Liberty).

    Cheers,
    Redom
     
  5. weejimmy

    weejimmy Well-Known Member

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    RAMS 98.5% is for P&I still doing 97% for IO, not exactly bad.
    You still need to go threw a broker to make sure the loan suits remember.
     
  6. Plucka

    Plucka Well-Known Member

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    4.15% eh. Recently got a 90% PPOR loan with Westpac and paying 4.38% on the their "pro package", this is loan just shy of $1m, should I be asking for better?
     
  7. Hodor

    Hodor Well-Known Member

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    Wow that's a good rate from westpac. I need to call ANZ.
     
  8. Mick C

    Mick C Well-Known Member

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    95% for PPOR is available with most banks.
    95%+ - Rams/ Westpac/ stg etc...
    100% LVR - Liberty
     
  9. JohnPropChat

    JohnPropChat Well-Known Member

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    100% - wow the LMI will probably be 4% to 5%
     
  10. Mick C

    Mick C Well-Known Member

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    It sure is :(

    Not something i would recommend lightly.....but for the right file/ client type it works.
     
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  11. Shahin_Afarin

    Shahin_Afarin Residential and Commercial Broker Business Member

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    Hell yes - go back to them and discuss with their discharges team. You should be aiming for 4.09%. Did you go via a broker or a WBC Banker?
     
  12. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    Yes.
     
  13. Redom

    Redom Mortgage Broker Business Member

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    For new borrowings they recently offered a 1.4% discount to anyone that asked (short window only) for 750k+ lending on new borrowings. You can get that sort of rate elsewhere but its likely the structure won't suit (P/I repayment, 80%). It is very competitive for the higher LVR loans as most of their competitors have pricing tiers depending on the LVR.

    They have one of the poorer performing calculators for those with investment ambitions though, so that may be worth factoring that into forward planning.
     
    Last edited: 8th Oct, 2015
  14. Watson1

    Watson1 Well-Known Member

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    Doesn't hurt to ask. Pricing has been continuously shifting in the last two years and especially the last 2 months.

    2 years ago, on a 1.5m loan, you would be lucky to get a 1.15% discount, 1 year ago 1.3% and today's market 1.37% discount. (svr 5.45)

    Doesn't necessary mean you got shafted, its just the way the pricing has changed.

    I remember still remember obtaining a 1.3% discount for a client early last year and the rate was 4.6% which is at the time was a fantastic rate at the time.

    Even with WBC and STG/BOM, it is only recently they have been offering sharper rates. 3 months ago I couldn't justify putting a loan through them when I was getting a 1.30% discount from a major for loans >$250k and they were offering ~1.10%.

    Today it is hard to look past STG/WBC with all the rebates and the fact they still provide discounts based on aggregate lend as well as stand alone investments.

    Don't expect to get a discount every 2 months, but they should offer you something.