Lenders assess mortgage applications differently based on the location of the property being offered as security. A lender, or the Lenders Mortgage Insurance provider, will apply more rigid lending policies in high-risk locations to limit their risk. This risk assessment often means that your maximum permissible LVR (and your borrowing amount) to be lower.
The Lender’s LMI Policy Guide may be consulted for information on what postcodes or property types might be affected, or you may use the tool below to check your postcode against the database. Keep in mind that not all localities within each postcode is affected, and nor is each property type.
When you apply for a home loan, a lender will take a large number of factors into consideration when deciding whether or not to approve your application. The Serviceability assessment determines if you can comfortably “service” the loan repayments after considering all of your …