The Loan to Value Ratio change has come into effect on the 1st of March 2021, as banks are withdrawing from their Covid Hardship Assistance.
It is important to know that these changes likely won’t affect any first home buyers, as even under the short period of time that the loans have been increased, the larger amounts were only given to a small number of buyers.
The change will rather have an impact on property investors, who will need to have at least 30% of the property price saved up. Banks from now on, can only give a loan with a maximum of 70% of the price.
Support from lawyers is still needed when making mortgage applications and Collins & May can help assist with any of your property concerns.
If you are wanting to purchase a property and need further guidance on the LVR changes, contact Collins & May and we can explain the requirements in detail.
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