Bluestone reinstates 90% LVR product

Bluestone has informed brokers that, effective immediately, it has reinstated its prime home loan product with a 90 per cent loan-to-value ratio (LVR) for borrowers in Sydney and Melbourne.

The full doc product, which was temporarily withdrawn in response to credit quality concerns off the back of the COVID-19 crisis, will be offered with an interest rate of 3.59 per cent (3.60 per cent comparison rate).

The product has no risk fees and does not include a lender’s mortgage insurance (LMI) premium.  

“We think it’s a very compelling offer, hopefully it assists [brokers] with a lot of customers, particularly first home buyers (FHBs),” Bluestone’s chief customer officer, James Angus, said.

This latest announcement comes just a month after Bluestone resumed lending to some of the industries hardest hit by COVID-19, following a six-month hiatus.

These industries include retail, tourism, entertainment and hospitality, with the policy changes applying to borrowers in all states except Victoria.

Bluestone also recently reduced rates for existing prime customers by up to 25 bps in response to lower funding costs.

“The rationale behind that is the funding environment for Bluestone has improved over the last few months, and we wanted to share that where we can with our existing prime customers,” Mr Angus added.

“We’ve been pleased to demonstrate that we value our existing customers and will maintain their rates as low as possible.”

[Related: Lender resumes lending to hardest-hit industries]