What Clients need to know about interest only changes

Good day mate,

As we come close to the end of May and financial year, we all know about the scrutiny the regulator (APRA) has regarding the investor loan market this year.

We have seen multiple changes in interest rates throughout 2017 thus far, and now the latest changes that just started with the major banks are changes to interest only LVR ratios

CBA 

Max LVR reduced from; 

95% to 80% LVR for new owner occupied loans with I/O options

90% to 80% LVR for new investment loans with I/O options

ANZ

Max LVR reduced to;

80% LVR for new and increased lending (including top-ups) and external refinances for both owner occupied and investment loans with I/O options

WESTPAC/ST GEORGE

MAX LVR only acceptable for loans;

Below 90% LVR for I/O options.

*Only exclusion is for Building/Construction loans where I/O is available during the construction period before reverting to P&I repayments

We expect to see more changes in the following months by the other banks.

Feel free to pop me any related queries that you may have for your clients.

Have a great weekend!!!!