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In a further sign that competition is reemerging in the market, Future Financial has increased its loan-to-value ratios (LVRs) on a selection of products.
The mortgage manager’s general manager Troy McLachlan told The Adviser that the company has increased its LVRs to 95 per cent on its Choice Intro Product, Non-genuine savings product, Choice pro-pack and other full doc home loans.
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“The global financial crisis forced lenders to curb lending, fewer players were offering 95 per cent LVRs, and we wanted to change that,” Mr McLachlan said.
“Brokers have been getting a rough trot lately, with some lenders pulling back from the market, and we just wanted to reinforce the fact that we are committed to providing the best products to the broker channel.”
Late last month, Westpac announced it would drop its top LVRs for new business to 87 per cent from 97 per cent.
The move sparked industry fears that others lenders may follow suit.
However, Future Financial dismissed the fear as unwarranted and said it had a number of other announcements bubbling in the pipeline that would support broker business.
“We are working on a number of other things that will help our broker channel,” Mr McLachlan said.
