The biggest lender of investment loans in the Australian mortgage market, Westpac has announced an 80% LVR cap on investor loans, subject to security property occupancy.
Effective 8 July 2015, the major bank announced that when a loan is originated as an investment property loan product, solely withinvestment property as security, borrowers will need to provide a deposit of at least 20%.
In communication sent by Westpac to brokers, obtained by Australian Broker
, some combination loans – i.e. investment and owner-occupier – will also be capped at 80% LVR.
According to the communication, when a combination loan is originated where there is only one security involved, the cap will apply.
However, when a combination loan is originated where there are multiple securities involved, as long as at least one of the securities is for owner-occupied purpose, the current policy will apply, not the 80% LVR cap.
Westpac is currently the biggest lender of investment loans in Australia. According to APRA’s latest monthly banking statistics, Westpac funded $150.9 billion worth of loans to investors in May.
This represented 32% of the total value of investment loans in May and was 18% above the second largest lender of investor loans, Commonwealth Bank – who funded $127.9 billion worth of investment loans in the month.
With interest rates at their lowest for more than 50 years, there are some great rates available. The best thing to do is to compare rates from all the lenders. Let us help take the leg work out of doing this - Compare Home Loans now
Top Suburbs :
Get help with your investment property
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 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 and appointment is free.
We value your privacy and treat all your information seriously - you can check out