Most banks now lending up to 95 per cent LVR

Australia’s banks have continued to loosen their credit criteria in a bid to entice potential buyers.

Almost 70 per cent of home loans now offer up to 95 per cent of a home's purchase price. All major four banks now offer home loans with up to 90 per cent LVR while Commonwealth, NAB and Westpac also offer up to 95 per cent LVR on some of their home loans.

But QBE LMI's chief executive Ian Graham said increasing the maximum LVRs was not the way to go. “I don't think we will ever see a return to 100 per cent LVRs,” he said. “Instead, as the banks desire for market share grows, we will see increased segmentation of product.”

Source: The Adviser