- March 1, 2011
- Posted by: admin
- Category: Financial goals, Home loan product, Interest rate, Wealth
Westpac is gearing up to capture new business by increasing its maximum LVR lending.
Yesterday, the major announced it would up the maximum amount it lends to new home loan customers from 90 per cent to 95 per cent LVR plus capitalizing the mortgage insrance to a toal LVR of 97%.
The major’s announcement comes just one day after CBA said it would increase its maximum LVR lending to 95 per cent for all new customers.
Last month Westpac announced rate cuts of up to 80 basis points off one of its products.
But while competition between the majors is heating up there may not be enough borrowers to warrant the current mortgage war.
While it is clear that there are lot of players out there lending aggressively, the question is, is there going to be the demand from the consumer side?
I have found that that housing stock is down and consumers are not necessarily out there looking for mortgages at the moment. All mortgage brokers and lenders are saying their volumes are down. This is good news for anyone looking for a home or investement loan