For loans under this new tier, homebuyers can borrow with as little as 15% deposit. Typically, borrowers have to pay LMI if they have a deposit below 20%, which can add thousands to the upfront costs of purchasing a property. The cost of LMI usually depends on factors including the loan size, mortgage type, and the amount of the deposit.
The new 85% tier will be available under these 86 400 products:
Own variable-rate home loan;
Own fixed-rate home loan (1-, 2-, 3-, and 5-year terms);
Neat variable-rate home loan.
The interest rate for the 85% LVR loans starts at 2.04% (2.96% p.a. comparison rate) for a one-year fixed rate under the ‘Own’ home loan and at 2.54% p.a. (2.55% p.a. comparison rate) for the ‘Neat’ home loan.
Every day we send out a free e-mail with the most important headlines of the last 24 hours.
Subscribe now