One in 10 happy to borrow close to 100%: Loan Market

A new study has found that while the majority are happy borrowing up to 80% of their property's value, one in 10 would be comfortable to borrow 100% or close to it, according to a new survey by Loan Market.

Within the survey, 44% of participants said that they were hoping to borrow below an 80% LVR to help avoid charges such as Lenders Mortgage Insurance.

Loan Market director, Mark De Martino, said that with the property market going strong, buyers need to quickly work out what LVR suits them best.

“Buyers who get their finances together early in purchasing process will be able to bid at auctions or private treaties more confidently because they’ll know the exact impact borrowing more or less would have on their loan repayments and household finances,” said De Martino.

“In some situations the only way to crack into a hot property market is to borrow closer to the value of your property. This can be a successful strategy for buyers who do their homework and make sure they get a home loan that matches their personal and financial situation," he said.

A total 10% of borrowers said they would be comfortable borrowing up to 97% of the property's price.

A free LMI toolkit has recently been released online by Genworth.

The survey was conducted online and include 662 respondents.

Useful reading: 8 things you need to know about Lenders Mortgage Insurance

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Jennifer Duke

Jennifer Duke

Jennifer Duke was a property writer at Property Observer

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