Yellow Brick Road/Macquarie deal - bad news for high LVR borrowers?

In 'Coming up: A hard lesson in refinancing risk?' I highlighted a potential threat to borrowers with high loan to valuation ratios (LVRs). Yesterday's announcement of a deal between Yellow Brick Road (YBR) and Macquarie, to take on the Big 4 banks in the home mortgage market, again raised the issue. YBR offer to 'smash your home loan' but they don't smash it quite as hard if your LVR is more than 80% (rates are 0.05% higher). 0.05% probably isn't going to break anybody but it's another sign of LVR feeding into the price charged for home debt - not good...

In 'Coming up: A hard lesson in refinancing risk?' I highlighted a potential threat to borrowers with high loan to valuation ratios (LVRs). Yesterday's announcement of a deal between Yellow Brick Road (YBR) and Macquarie, to take on the Big 4 banks in the home mortgage market, again raised the issue.

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