Example 4 – Building loan applications
18.4 LVR table
LVRs for acceptable assets offered as security and applicant/ purpose risks are detailed in – 18.4.1 LVR table. The table does not exhaustively list or replace any other credit policy contained elsewhere in this manual or LMI acceptance criteria.
The table identifies the maximum LVRs for when:
• lender’s mortgage insurance (LMI) is not required (without LMI)
• lender’s mortgage insurance (LMI) is required (with LMI)
• lender’s mortgage insurance (LMI) is not available with MI.
Lender’s Mortgage Insurance
Where LMI is required, refer LMI policy. Refer to – 22. Lenders mortgage insurance (LMI).
All policy exceptions are to be submitted to Credit for approval in all instances, prior to seeking approval for LMI cover through MI.
For loan applications that are to be submitted to MI for approval, lower LVRs may apply.
Acceptable securities policy
The LVR table is to be read in conjunction with Acceptable Securities policy. This policy identifies the acceptance criteria for each type of asset offered as security Refer - 17.1 Overview to 17.7 Non real estate
18.4.1 LVR table
Legend:
1. refer to appropriate LMI insurer for prior approval in all cases
2. all policy exceptions are to be referred to Credit for a credit decision, before seeking LMI approval
3. not available through MI
4. new customers with max LVR of 95% are subject to all standard LMI >90% policy restrictions plus:
• maximum loan amount of $750,000
• no Auto Decline overrides will be considered
• genuine savings policy applies, with the exception of Inheritance and Sale of non-real estate assets which are capped at 90% LVR
5. any applications for investment loans that have an LVR >90% will require a minimum equity of 10% to be held in another property.
Note:
Maximum LVRs may be exceeded to cover the cost of the LMI premium – refer to:
18.5 Exceeding maximum LVR
LVR Risk Factors Max LVR
Non Prime Lending Area refer 17.6 Non prime lending areas
A Non Prime Lending Area is, defined as a town with population <500, except if:
• the town is situated within 20kms of another town/centre with a
Any security property <=
$2.0 million (all locations) (Note: Acceptance at the maximum LVR subject to review and approval by Credit in all cases)
80% 80% 95% 90%
Any security property >$2.0 million and <= $2.285 million (all locations)
* Sliding LVR scale between 70% and 80% limiting max borrowings to $1.6m
Any security property >
$2,285,000 (all locations)
to max
Re-Location Loan – with end debt
Re-Location Loan – with no end debt refer 17.5 Residential real estate
• Residential property
< 2.5 HA)
Owner Occupied - 1st Mortgage
80% 80% 95% 95%
All refinances from other financial institutions
80% 80% 90% 90%
Non-Owner Occupied (Investment) – 1st Mortgage
80% 80% 95% 95%
2nd Mortgage security, Owner Occupied / Investment loans: refer – 18.1.1 Second mortgages – LVR calculation
• Behind St.George
Note: LVR applies to the combined 1st and 2nd mortgage loan amounts (Refer to Example 2 – multiple security (property) types with different LVRs applicable to each type of security in Attachment A - examples).
Company Title 80% 80% 85% 85%
NRAS security under a Head Lease arrangement
70% 70% 85% 85%
NRAS security under a Non-Entity Joint Venture (NEJV)
80% 80% 90% 90%
Stratum Title security 80% 80% 85% 85%
Owner Builders
(refer - 21.2 Owner builders – Building loans)
Non-Resident borrower: refer - 9. Non-residents
Self supporting (in Aust.) 80% 80% Both policy exceptions
Both policy exceptions
Not self supporting 80% 80%
Vacant Land refer - 17.5.3 Vacant land
Security Value > $50,000 and size <= to 8 Ha
80% 80% 95% 95%
Security Value < $50,000 and / or size > 8 Ha but <=
Land size > 50 Ha (Refer all
Inner City Apartments refer - 17.5.6 Inner city (high rise) apartments
Min size requirement 50sqm except if noted in 17.5.6. Residential real estate
70% 70% Both Policy
exceptions
Both Policy exception
Display Homes – refer 17.5.11 Display Homes – Residential real estate
75% 75% N/A N/A
Conversions to residential from other usage (eg warehouses,
hotels/motels, commercial offices) refer - 17.5.5 Conversions to residential
Residential Real Estate located in Concentrated Risk Postcodes
New loans and increases in the following postcodes for investment and portfolio loans only (excludes owner occupied):
3232, 3460, 4225, 4717, 4744, 4745, 4746, 4819, 4877, 6516, 6710, 6713, 6714, 6716, 6718, 6720, 6721, 6722, 6723, 6751,
70% 70% 90% 90%
6753, 6754, 6758, 6760, 6762
Residential property > 8 Ha refer 17.5.8 Residential properties greater than 8 Ha – Residential real estate
Residential property > 8 Ha but <= 50 Ha
80% 80% Policy
exception
Policy exception
Residential property > 50 Ha (Refer all deals to Credit)
50% 50% Policy
exception
Policy exception
Other Specialised Residential Real Estate
All other specialised residential property eg
• Resort style developments
• Boarding houses
• Leasehold property located in the NSW &
VIC snowfields
Refer to Credit for instructions, prior to proceeding with any applications. Acceptability and LVR will be
considered on a case-by-case basis.
Non Real Estate Assets refer - 17.7 Non real estate
Term Deposits St.George Bank Group
100% 100% N/A N/A
Low Doc Home Loan and Low Doc Portfolio Loan
Max LVR
To $1 million 60% 60% 80% 80%
>$1 million to $1.5 million 60% 60% N/A N/A
Security Type
Residential properties <=
50 Ha
60% 60% 80% 80%
Vacant Land <= 50 Ha 60% 60% N/A N/A
Residential properties / vacant land > 50 Ha (Refer all deals to Credit)
50% 50% N/A N/A
Note:
• Credit will consider higher loan amounts on an exception basis, generally at lower LVRs
• The maximum OOT (One Obligor Total) when LMI is required is $2.5 million.
• LVRs can be increased by the amount of the LMI premium.
## Effective 4 May 2009, an existing customer is defined as any one of the loan applicants having one of the following:
1. A CIS record of greater than 6 months and be Sole or Joint Owner of an open facility with the St.George Group (St.George or BankSA only*) at the time of application; or
2. For greater than 6 months (as at the date of application) have had any one of an existing St.George Group Commercial facility or Margin Lending facility or Auto-Finance loan.
Otherwise the application is to be considered being from a new customer, and the lower LVR (or the higher minimum equity) thresholds apply.
*This does not include either a Westpac customer or a RAMS customer.
Seniors Access / Seniors Access Plus Home Coast, Gold Coast, Melbourne and Sydney Metro
See Attachments: Attachment B – suburb boundaries for Seniors Access Loans
Maximum loan amount – other allowable lending areas
63-64 years $150,000 or 15% of the value of the property, whichever is the lower.
N/A
65-69 years $150,000 or 15% of the value of the property, whichever is the lower
$150,000 or 15% of the value of the property, whichever is the lower.
70-79 years $200,000 or 20% of the value of the property, whichever is the lower
$200,000 or 20% of the value of the property, whichever is the lower.
80+ years $250,000 or 25% of the value of the property, whichever is the lower
$250,000 or 25% of the value of the property, whichever is the lower
If loan is a joint application and one customer is 63 and the other is 80+, then use the younger applicant's age to determine LVR and maximum loan amount available.
There are no exceptions to these limits.