Higher LVR Loan Products In Demand
According to a report from Loan Market Group there has been a surge in the demand for higher LVR products rising 250% since the beginning of last year confirms The Adviser. Since the First Home Owners grant incentives initiated by the Australian Government, a return for the demand for the 100% LVR loan has returned. Since the downturn, the majority of lenders have reduced their maximum loaning against property values to around the 85% mark. With many home owners seeking higher LVR products, they are finding themselves coming up short in the marketplace.
Simon Reibelt from Oasis Home Loans Northern Beaches advised that people looking for the higher LVR products needed to ensure they could firstly service the level of debt and understand that the more they borrowed the more they were at risk.