St George latest to tighten LVR criteria

St George has announced it will change its lending policy, with new LVR limits and savings policies in force as of Monday, 4th May 2009.

St George’s maximum LVR for new customers will reduce to 90% (plus LMI premium to a maximum of 92%) as a result of “ongoing volatility in global financial markets, rising unemployment levels and declining property prices... and to ensure the bank continues to manage a responsible level of risk”, according to an update issued to brokers.

Existing customers will have access to LVRs up to 95%, or 97% including LMI. All customers, regardless of LVR, will also be required to show 5% genuine savings.

The move by St George reflects an ongoing reduction in lenders’ appetites for risk and brings its policy in line with parent bank Westpac.