Westpac lowers deposit requirement

By |

Westpac announced changes to its lending rules, including an increase in the maximum loan-to-value ratio for interest-only investor loans.

Investors taking out an interest-only loan will now be allowed to borrow as much as 90% of their target property's value, reducing their deposit requirement to 10%.

This change will apply to new purchases, refinances, and loan variations.

Borrowers switching from principal-and-interest can also take advantage of the lowered deposit requirement. However, borrowers will need to adhere to the current switching policy — they will only be able to switch to interest-only repayments post 12 months of loan drawdown.

Westpac also announced changes to its Household Expenditure Measure (HEM) calculations. Referral to a separate credit review will no longer be required in instances where expenses are higher than 130% of HEM.

According to the bank, this change will deliver faster turnaround for loan approvals.

Westpac's subsidiaries, Bank of Melbourne, St. George and BankSA, will also adopt the changes to interest-only loans and HEM calculations.

Top Suburbs : keperra , murdoch , coburg north , trott park , kawana

SHARE

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 an appointment is free.

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