75% of home loans offered in the country are being offered at low deposits of up to 5% or less, according to financial website RateCity. More clients that were previously denied are now eligible for home loans. 73% of lenders have also increased their LVR (Loan to Value Ratio), the value of the loan against the property value. Lenders now approve LVR’s up to 95% of the property value, even requiring just 5% or less on the deposit. These numbers have increased compared to last year, when lenders LVR of 95% or higher were only offered by 68% of lenders.
Although this sounds like great news, borrowers are advised to make sure that they are aware of the other charges involved in home loans, such as Lenders Mortgage Insurance (LMI). Ensure that you are getting proper information regarding these changes by getting sound financial advice from licensed individuals.
Read more about this on the News.com.au website.