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).