Property market shift: How 95% loans can change the game

In this episode of The Smart Property Investment Show, host Phil Tarrant speaks with Eva Loisance, principal at Finni Mortgages, about the pivotal role finance plays in property investment.

They explore the resurgence of 95 per cent lending, highlighting how major banks like Westpac are reintroducing high loan-to-value ratio (LVR) options after a period of restraint.

Tarrant emphasises that successful property investment relies on strategic financial planning, understanding lending policies, and staying alert to market changes.

Loisance explains that while January was quiet, February brought a wave of new policies, with 95 per cent lending offering lower deposit requirements and faster market entry.

She also warns that high LVR borrowing carries risks such as negative equity, making it essential to invest in growth areas and align loans with long-term strategies.

The discussion covers competitive interest rates, pre-approvals, and the importance of factoring in lenders mortgage insurance when considering high LVR loans.

For investors, 95 per cent lending presents both opportunities and challenges, requiring careful planning and professional advice to maximise benefits.

Overall, the episode highlights how staying informed and leveraging the right financial tools can help investors navigate the evolving property market successfully. If you like this episode, show your support by rating us or leaving a review on Apple Podcasts and by following Smart Property Investment on social media: Facebook, X (formerly Twitter) and LinkedIn. If you would like to get in touch with our team, email editor@smartpropertyinvestment.com.au for more insights, or hear your voice on the show by recording a question below.