Owner Occupier loans

Whats the max LVR on O/O loans these days?

Also, are the serviceability calculations the same as investment loans (P&i at 7% etc)?

I want to purchase more properties but don't want to wait years for CG/savings. My income will increase significantly over the next 2-5 years so thinking i do a series of PPOR upgrades in Sydney (reno & refinance).

 

Serviceability assessment rates are reasonably similar whether its investment or O/O - there are slight differences depending on the lender (e.g. i think CBA/ANZ have an 0.27% difference in assessment benchmarks used).

Also from a servicing point of view, you can't include any rental income, so it may impact servicing based on income differences associated with purchasing an investment v O/O.

Major difference would be the deposit required - you can generally get higher LVRs with more lenders (there hasn't been a cut back on this - 95er loans are still doable). Note that LMI gets very dear above 90-92%, often the cost doesn't make much sense - particularly for purchases that are reasonably expensive.

Cheers,
Redom

 

Probably easier for FHB loans compared to OO.

Which banks are doing 95%+LMI cap for OO? PPOR upgrades seems to be the only way to keep buying in post-APRA world.

 

BoQ are the only ones still doing the full cap at that level I believe. But don't use them if you're in a rush for approval. Almost 2 weeks and counting.

 

BankWest.... Rams to 98.5.

 

Is this including capitalized LMI?

 

Yes incl the LMI. So 95% + LMI but cant exceed 98% for Bankwest and 98.5% Rams. If the LMI is more than the 3% or 3.5% (likely for higher loan amounts) you have to pull back the base ratio to 94% etc.

Bankwest pulled back to 98% about 2 weeks ago not that I ever use them.

 

Liberty is still capping LMI too I'm pretty sure.