85% LVR Home Loan
Home loans at 85% LVR are a good option for someone seeking to enter the property market in Australia. 85% LVR loans account for almost 10 percent of home loans originated through Mortgage Providers.
What is an 85% LVR Home Loan?
A home loan at 85% LVR is a loan amount which equates to 85% of the value of the property. Hence you will need only 15% deposit or equity to be able to raise an 85% LVR home loan.
Costs of an 85% LVR Home Loan
An 85% LVR loan generally has the same costs of a normal loan. The main difference to a loan at 85% LVR to a loan below 80% LVR is the added cost of Lenders Mortgage Insurance (LMI). The LMI cost is determined by the lender and their mortgage insurance provider. LMI costs at 85% LVR are cheaper than LMI at higher LVR’s.
LMI required at 85% LVR
There are a small select number of lenders who will Waive LMI at 85% LVR. Further there are some lenders who have an 85% No LMI policy. This type of policy and borrowing is quite unique and can be very cost effective if you are seeking an 85% LVR home loan. Please see 85% LVR No LMI, or Waive LMI.
Lenders who offer 85% LVR
Almost all major lenders offer 85% LVR home loans. These can include;
- Major Banks,
- Regional Banks,
- Credit Unions,
- Building Societies,
- Finance Companies
- Non Conforming Lenders
Genuine savings required at 85% LVR
You will NOT require genuine savings with most lenders at 85% LVR. A detailed explanation regarding genuine savings can be found by looking up No Genuine Savings Home Loan. In this case, your deposit or savings can come from any source including:
- Sale of an asset
- Tax refund
- Cash savings
Interest rates at 85% LVR
Most lenders who offer 85% LVR loans offer these types of loans at normal home loan rates. However, some lenders are offering discounts on loans which are under 80% LVR and even 75% LVR. Hence with some lenders, you will find a slightly higher rate at 85% LVR. It’s best speak to a Mortgage Providers broker and they will guide you through different lender’s pricing’s and policies.
Low doc 85% LVR
It is possible to get a low doc loan at 85% LVR with 2-3 lenders in Australia in 2012. There is 1 bank who offers this type of product to $400,000. The other lenders are non bank lenders who can lend up to $850,000 and $1m at 85% LVR. An 85% LVR low doc loan can also be for either a purchase or a refinance using low doc policy.
Credit score at 85% LVR
Not all lenders credit score loan applications. Hence there are quite a few lenders who will lend you at 85% LVR with no credit scoring. This type of approach is good for people who have failed credit score with a lender, yet are still in a good position to take out a loan if offered.
85% LVR Loan in Company or Trust name
You could have an 85% LVR home loan in the name of any of the following:
- Business name
- Personal name
85% LVR Home Loan with Bad Credit
There are a very small number of lenders who will consider an 85% LVR home loan with some bad credit history. The level of bad credit is important for a lender when assessing whether or not to approve a loan at 85% LVR. There are some building societies and non bank lenders who will consider a bad credit home loan.
At Mortgage Providers, we know which lenders offer 85% LVR loans whilst at a competitive interest rate. We can even arrange for the LMI to be waived and you wouldn’t even have to show any genuine savings. We can even get some loans approved using low doc policy to 85% LVR – so call us today!