Aussie markets 110 per cent loan

Aussie Home Loans said it would lend up to 110 per cent of the value of a property, provided the borrower could provide a family member as guarantor. The twist with this is that Aussie say that parents or family members can commit a “set amount”. The preliminary marketing material for the loan leaves the mechanism vague, but may involve a caveat over the parent's home or a second mortgage. Other lenders such as St George and Wizard also market home loans with very high loan to valuation ratios.

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