St. George has notifed its broker network that it will increase its maximum LMI LVR from 90% to 95% for new to bank customers, as it seeks to stimulate growth in in third party originated loans.
Steven Heavey told Australian BrokerNews the bank was looking to push its third party mortgage porfolio growth back up to system levels, following slower than expected growth.
The bank's credit changes are designed to boost its third party performance, and come in tandem with its decision to revert to paying commissions for loans in arrears between 30 and 60 days.
In addition to the boost to 95% LVR, the bank has offered a $700 refinance rebate for new and existing customers, who choose to exit another institution in favour of a St. George packaged loan.
This is being run in conjunction with the bank's intro campaign, that is cutting 1% off the standard variable rate for the Introductory Rate Home Loan for the first year, after which it reverts to 0.70% per annum off the standard variable rate, if taken as part of the Advantage Package.
Heavey commented that the bank was had put a range of different credit initiatives in place "when things were pretty tough", and now that the market was increasingly competetive, it was time to "relook at some of those credit changes to get back to where we were".
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