Non-bank lenders are seeking to claw back market share with the reintroduction of high LVR products.
Homeloans Ltd yesterday reintroduced lending of up to 95 per cent LVR after 18 months of tighter lending policies.
“Homeloans has made the move back into high LVR lending at this point in time because it now has more of an appetite to take on this kind of business,” Homeloans general manager of third party sales Tony Carn said.
Furthermore, Mr Carn said the non-bank lender saw an opportunity in the market.
“There has been a real shortage of home loan options in this space in recent times. And those on offer through the major banks are available on a limited basis,” he said.
Homeloans’ new 95 per cent LVR policy will apply to its MoniPower full doc loans of up to $750,000 in certain locations. It is available only to owner-occupiers including new properties and construction loans.
National Mortgage Company and Iden Group also announced the re-launch of 95 per cent LVR lending yesterday.
Fernando Lemos, National Mortgage Company’s head of sales, said he was pleased to be in the position to offer consumers choice and the ability to purchase a home with five per cent genuine savings.
“Good quality clients are being pushed away by the banks on this form of traditional lending.
“We feel however, if a client can demonstrate five per cent genuine savings and satisfy our employment requirements our portfolio quality remains at a high level,” he said.