SBS and its subsidiary HBS have introduced new pricing for home loans based on the LVRs. For loans where there is a deposit or more than 20% (LVR <80%) it is offering sharp rates for terms of two years and five years. If the loan is over the 80% mark then the rates are 20 and 30 basis points higher respectively.
This move is consistent with the predictions made here that when the Reserve Bank introduces lending retrictions on the the banks two markets will develop with home loan pricing with banks actively fighting for business where the LVR is less than 80%.
Also today we talk to out-going Loan Market chief executive David Hart about why he is leaving. Story here.
