Westpac lowered the maximum loan to valuation ratio it will accept on new home loan applications to 90 per cent from 95 per cent, the bank advised mortgage brokers yesterday. The new cap applies to applicants that are not already a customer of the bank.Taking into account the premium for mortgage insurance the new LVR cap is effectively 92 per cent.The bank will also require applicants to have genuine savings equal to five per cent.The bank cut the maximum LVR for its Rams Home loan brand to 90 per cent as well. The LVR cap at the bank's St George brand is under review, the Financial Review reported.Commonwealth Bank tightened its LVR cap to 90 per cent late last month while ANZ and National Australia Bank tightened lending policies late last year.