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LVRs keep going up and up

10/09/2010

More lenders are reintroducing lending up to 95 per cent loan to valuation ratios but 100 per cent loans will not be returning to the Australian market say experts. Genworth’s acting chief executive officer Paul Caputo said: “One thing we learnt from the GFC was that borrowers perform better when they have some level of savings. Their behaviour is very different to those that have no savings at all. In this respect, I don’t think we are going to see the industry move back to 100 per cent LVRs in the near future.”

Caputo believes the industry will be happy to offer a maximum LVR of 95 to 97 per cent. Firstfolio chief executive Mark Forsyth said even if lenders do decide to move back into the no-deposit home loan space, Mr Forsyth said the requirements on the loans would be so extreme that they would be almost impossible to obtain.

Source: The Advisor



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