Borrowing options widen
High LVR (loan to value ratio) lending is back en vogue, with three lenders announcing changes in their policy in the past week.
Last week, ING DIRECT and National Finance Club both announced plans to increase their maximum loan to value ratio to 95 per cent, meaning borrowers can borrow up to 95 per cent of a property's purchase price.
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LJ Hooker is also getting ready to join the ranks.
Speaking to Smart Property Investment, LJ Hooker financial services general manager Peter Bromley said the lender would increase the maximum loan-to-value ratio on its standard variable home loan to 95 per cent.
“We are looking to make this change within the week,” Mr Bromley said.
“We want to position ourselves as a viable alternative to the banks, but to do that, we understand that we must provide a highly competitive product suite.”
In addition to extending the LVRs on its home loan products, Mr Bromley said the lender would also look to expand its product suite to include low doc and line of credit mortgages within the next few weeks.
