PHOTO: Lucia Xiao is a successful property coach and mentor
A main bank has has increased its maximum loan-to-value ratio (LVR) from 90% to 95% for specific property types. Meaning you could have a deposit of as a little as 5% for your owner-occupied home purchase.
Why would the bank do this now? This bank’s move signals confidence in the prospect of house prices. They’re extending elevated LVR loans (95%) for specific properties, anticipating that appreciation will offset potential defaults. Targeting loyal, stable customers suggests they believe these borrowers, despite lower deposits, will manage the risk. It’s a calculated gamble: attractive terms for a select group, hoping future market growth benefits both them and the borrowers.
To qualify though, the property must be a standard, owner-occupied residential or terraced house/townhouse, a very strong income, an existing customer of the bank (and contributing income to an associated account for at least 3 months), and be a live deal (accepted offer, or looking to bid at auction/tender).
What is a ‘Live Deal’? What’s the difference between a ‘Live Deal’ and ‘Pre-Approval’?
SOURCE: Lucia Xiao
Self-made multi-millionaire, Lucia Xiao is a successful property coach and mentor, founder of Finax Mortgages & Insurance and author of Financial Freedom: 5 Steps, 5 Years.
From humble beginnings living in a state house, Lucia previously built a $17 million property portfolio in 5 years, and continues to manage and grow it over time.
Lucia has also been an investment advisor and mobile business manager through the GFC and business and commercial insurance manager for a leading NZ bank. Her experience working with tens of thousands of banking customers has equipped her with highly valuable and unique experience for mortgage clientele.
Lucia also is a proud supporter of Kidscan through the B1G1 program.