Mirvac unfazed by halt to foreign lending

By |
The chief executive of real estate group Mirvac believes the company will maintain strong settlement rates on apartment sales despite the major banks’ new restrictions on lending to foreign buyers.

Susan Lloyd-Hurwitz was responding to Westpac's announcement that it will stop lending to foreign residential property buyers, the latest major bank to take such a measure.

Lloyd-Hurwitz told Australian Financial Review, “We're yet to see the impact that will have on financing but we work closely with a lot of our purchasers and they get a lot of notice from us as to when they're going to need the money.”

Sale to foreign buyers are thought to make up 20-30% of Mirvac’s total sales. However, some of these buyers use cash while others use global banks or their own lenders. Foreign buyers looking to borrow in Australia, in order to build a credit profile, is a relatively new phenomenon.

"I'm not denying if there is no financing from Australian banks for foreign buyers it wouldn't change customer behaviour," Lloyd-Hurwitz said.

"We'd have to work harder with them to go back to where we were a few years ago when they weren't relying on domestic financing."

She added, "We haven't seen any systemic difficulties in getting capital out of China, we haven't seen any problem with valuations. It's absolutely business as usual."

The one major bank that hasn’t announced a halt to lending to foreigners, NAB, has said it will continue to review foreign loan applications on a case-by-case basis.

Can you afford to buy in this suburb? Find out how much you can borrow

Top Suburbs : springwood , rooty hill , ropes crossing , belmont , tweed heads south

go back

Get help financing your investment



Do you need help finding the right loan for your investment?


When investing in property, it is important to make sure that you not only have the lowest available rate that you can get, but also have the correct loan features for your needs.

Just fill in a few details below and we'll then arrange for a local expert Aussie Mortgage Broker to contact you and work out what features or types of loans are right for your needs. We'll even help with the paperwork. Plus, our mortgage broking service is at no cost to you.

How soon would you like a mortgage?
What is your Annual Household Income i $
Do you currently own any Investment Properties?
Do you own your own residence?
How much equity do you have in all your current properties?
First Name
Last Name
Where do you live?
What number can we reach you on?
E-mail address
We value your privacy and treat all your information seriously - you can check out our privacy policy here