Non-major lender ING Direct has announced changes to its underwriting guidelines relating to apartments and unit dwellings. In a note sent to mortgage brokers on Friday, ING announced restricted LVRs on unit dwellings with an internal floor space of less than 60 square metres.
Where a proposed security property has an internal floor space of less than 60 square metres, excluding balconies and car spaces, and is less than 5 years old, the non-major will limit the maximum LVR on the loan to 70%.
In addition, where a proposed security property has an internal floor space of greater than 50 square metres and less than 60 square metres, excluding balconies and car spaces, and is older than 5 years, ING will limit the maximum LVR on the loan to 80%.
According to data from CoreLogic, there are 92,102 new units set for completion over the next 12 months with that figure rising to 231,129 over the next 24 months. Sydney and Melbourne have the greatest increases in stock over the next two years, with 81,696 and 80,503 units to be completed respectively.
