AFM: Maximum LVR for IO Loans

The maximum LVR for new loans with an Interest Only portion will be limited to 80% (excluding any capped Risk Fee or LMI). This includes variations to any existing loans.

The following should be noted:

  • Applies to all products - Prime and Specialist Lending
  • Applies to both Owner Occupied and Investment Loans
  • The LVR will be calculated on the base loan amount - i.e. any Risk Fee or LMI can still be capped above the 80% limit

Updated product specs that reflect this change and also updated rate sheet that reflects the Complete/Alliance change (no change to rates just removal of >80% IO rates).