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Westpac has cut its maximum LVR for new borrowers who are not already a client of the bank.
In communiqu‚ sent out to brokers this week, the bank said it found it "necessary" to implement some changes to its existing policy, given the current climate.
As part of the changes, effective 25 April, Westpac's maximum LVR will be dropped to 92% (inclusive of LMI) for non-Westpac clients. A maximum LVR of 97% will continue to be available for Westpac customers.
The bank has also scrapped its non genuine savings policy. Going forward 5% genuine savings will be required for LMI deals, and rent will not longer be accepted as genuine savings.
Westpac said that in order for deals to be considered under the old policy, brokers must submit them by 25 April with a contract of sale.
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