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ANZ lifts LVR to 95%

ANZ has lifted its LVR to 95% for its existing customers who have a strong credit history in an attempt to claw back some of the market share it lost to CBA and Westpac last year.

"We have a strong risk profile in our mortgage portfolio, having chosen to sit out much of the first-home buyers' market in 2009," a spokesperson to Broker News.

ANZ was the first Australian bank to tighten credit policies in response to the GFC, and has maintained the most conservative position on LVRs now for 16 months.

"With the improved economic outlook, we have taken a decision allow mortgage lending up to 95% LVR for some existing customers where they have a strong credit history," the spokesperson said. "All applications that are above 90% LVR will require a full valuation."

LMI is included in the 95% LVR cap and the spokesperson said the bank is conscious of loan serviceability in an environment of rising interest rates. The bank uses an interest sensitivity buffer and has also recently raised its default living expenses in the credit assessment process.

By Luke Cornish | 12 Apr 2010
Source: Broker News