A third Australian bank has announced changes to its lending practices in response to the Australian Prudential Regulation Authority’s (APRA) push to reign in the levels of finance being supplied to investors.
APRA last week told banks they had to hold more capital against their mortgages
as part of their efforts to bring annual growth of investor lending to under 10% and the Commonwealth Bank
both announced rate increases as a result.
Those moves have been followed by Westpac attempting to curtail lending to foreign investors by writing to mortgage brokers to tell them that all applicants must have an Australian visa and confirm to Foreign Investment Review Board (FIRB) requirements.
The bank issued the advice in a letter to brokers last week that was leaked to the Australian Financial Review.
“All future home lending applications that you submit to Westpac must contain a primary application that has an Australian residential address," the letter read.
According to the AFR, the letter was sent to brokers identified as having a high proportion of clients who do not reside in Australia.
In a statement to the AFR, a Westpac spokesperson said the bank was reminding brokers to operate within the FIRB rules.
"It's just a reminder to brokers with a higher percentage of non-resident lending that when submitting owner-occupied applications [they] should contain an Australian residential address."
Do you have more than $200k in your super fund? You could use your super to buy property - Find out how
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