Coming up: A hard lesson in refinancing risk?

I was interested to see this week that ING have announced  the introduction of Loan to Value Ratio (LVR) based pricing for some of their home loan products. Borrowers who have LVRs below 80% will get a cheaper rate than those who don't. Westpac also took some baby steps down this path a couple of years back by limiting LVRs for new customers to 87%. Early days yet, but could this be the start of a trend towards full-blown LVR based pricing? This would certainly be a more appropriate way for the banks to price the risk on their balance...

I was interested to see this week that ING have announced  the introduction of Loan to Value Ratio (LVR) based pricing for some of their home loan products. Borrowers who have LVRs below 80% will get a cheaper rate than those who don't. Westpac also took some baby steps down this path a couple of years back by limiting LVRs for new customers to 87%.

{{content.question}}

{{ twilioFailed ? 'SMS Code Failed to Send…' : 'SMS Code Sent…' }}

Hi {{ user.FirstName }}

Looks like you've already taken a free trial

Please enter your payment details

We have sent you a code via SMS to {{user.DayPhone}}

please enter this code below to activate your membership

We cannot send you a code via SMS to {{user.DayPhone}}

If you didn't receive SMS code please

SMS code cannot be sent due to: {{ twilioStatus }}

Please select one of the options below:

Looks you are already a member. Please enter your password to proceed

Please untick this box when using a public or shared device


Verify your mobile number to unlock a FREE trial

Please sign up for full access

Updating information

Please wait ...

  • Mastercard
  • Visa
Mastercard

The email address you entered is registered with InvestSMART.

Please login or select "Don't know password"

Please untick this box when using a public or shared device


Register as a new member

(using a different email)

Related Articles