CBA increases max LVR
The Commonwealth Bank has become the latest in a long line of lenders to increase its maximum LVR (loan to valuation ratio).
Over the weekend, the major announced it would allow all new mortgage customers to borrow up to 95 per cent of the value of a property.
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Previously, new customers were limited to 90 per cent LVR, while existing customers could borrow up to 95 per cent.
In the past month, St George, National Finance Club and ING Direct increased their maximum loan to value ratio to 95 per cent, suggesting high LVR lending is back en vogue.
CBA’s general manager retail products Michael Cant said the decision to increase its maximum LVR was a response to growing competition for a smaller number of borrowers.
“We are certainly looking to grow our lending to the home loan market,” he said.
On Friday last week, the bank launched a new no fee home loan that is designed to attract new customers.
