LVRs on the way up

Lenders are offering higher loan-to-valuation ratios on mortgages, according to the comparison website RateCity.

In another sign that competition is intensifying in the sluggish home loan market, RateCity found that the number of lenders offering loan with LVRs up to 97 per cent had doubled since the start of the year.

ANZ has increased maximum LVRs on most of its mortgages from 90 to 95 per cent this year. Commonwealth Bank offers up to 97 per cent on most of its home loans.

National Australia Bank offers between 90 and 95 per cent and Westpac offers a maximum of 92 per cent.

Overall, 62 per cent of the loans in the RateCity database offer LVRs of 95 per cent or more - up from 54 per cent at the start of the year.