Can I get a LVR 95% home loan (you can download a free Excel LVR calculator)? The answer is yes.
In August 2010, the Commonwealth Bank, Westpac and the ANZ relaxed their lending criteria. Westpac lifted its maximum LVR to 92 per cent while the ANZ went further, to a maximum LVR of 95 per cent. CBA not only lifted the maximum LVR to 95%, it also increased its interest rate discount from 0.6 per cent to 0.7 per cent on loans above $500,000.
The moves follow the lead of smaller lenders. The Bendigo & Adelaide Bank moved its maximum LVR to 97 per cent and Mortgage House launched a 99 per cent LVR loan.
Others offering LVRs of 95 per cent or more include: CUA, MyState Financial, ServiceOne, BankWest, Rams Home Loans, St George and Suncorp.
While the decrease of LVR makes it easier for home buyers to access loans with smaller deposits, taking on a big debt demands a cautious approach. You should always use a mortgage home loan calculator to estimate your affordability.