ANZ, which is the last of the big banks to keep a two-tiered pricing structure for its home loans, has taken a half step to change this model.
It continues to have a higher interest rate for its low equity loans but has reduced the threshold this kicks in from an 80% LVR to 90%.
Its says, on its website, that this change applies to new fixed rates where the deposit or equity in the deal is 10%.
It does not apply to loans which are exempt from the Reserve Bank’s LVR restrictions including refinancing from another bank.
Home loans at 90% or higher LVR have an interest rate 50 basis points higher than standard rates amd all loans above 80% LVR also incur the cost of a low equity premium...MORE»
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