Advisory Services Loan-to-value ratio restrictions comes into - TopicsExpress

Advisory Services Loan-to-value ratio restrictions comes into effect from 1 October 2013 From 1st of October, banks will be required to restrict new residential mortgage lending at loan-to-value ratio (LVR) of over 80% (i.e. deposit of less than 20%) to no more than 10% of their new residential mortgage lending. This new rule will not apply retrospectively to existing loans but some loan approvals which are yet to be documented and signed between banks and their customers may be affected.

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