NZF has added further mortgage insurance options to its loan products and has re-adjusted the way it structures high LVR loans (80 – 95%).
Instead of the previous Low Equity Margins, which were added to base interest rates, NZF now offers a more competitive interest rate (with only a 0.25% rate margin), and will capitalise the LMI premium – into an Accelerator Account.
High LVR loans will be ‘split’ into two parts – with the LMI portion in a separate floating facility to be repaid over a short term (between 2 and 4 years depending on the LVR). This LMI Accelerator Account will give the borrowers the opportunity to repay this portion of their loan faster, with no penalties.
"LMI is a necessary and inevitable cost on high LVR loans – and we feel offering clients the opportunity to pay this down as fast as possible is the right thing to do," NZF says.
Meanwhile latest figures show the number of mortgagee sales are down in January. While they have fallen there is a warning this dip could be a short-term change. More details here
