Home News Westpac lowers deposit for property investors

Westpac lowers deposit for property investors

Font size :
Westpac, Australia's biggest lender to property investors, has brought the bank in line with rival Australian lenders as it lowered the bar for investors seeking home loans.

The bank increased the maximum loan-to-valuation ratio for prospective landlords from 80 to 90 per cent. This means that investors will only need a deposit of 10 per cent of the loan, lower than the previous 20 per cent. Among Australia's four major banks, Westpac was the only one with an LVR of 80 per cent.

Westpac's move marks a partial reversal from the industry-wide clampdown on investor lending last year as the Australian Prudential Regulation Authority sought to limit growth in lending to investors to 10 per cent per year. Westpac then dropped the LVR last July 2015 to 80 per cent from 95 per cent.

The bank, which has a loan book worth $136 billion, had a seven per cent drop in investment lending growth over the 12 months to March from a rate of more than 11 per cent for the first half of 2015.

However, Westpac's move is in contrast with Macquarie Bank's, which restrained lending for almost 50 risky postcodes in more than 100 suburbs across Australia's capital cities. According to Macquarie, mortgage brokers have to advise their buyers to provide at least 30 per cent of the purchase price upfront.

It can be confusing to know whether to get a variable rate or fixed rate mortgage, and what features are important. That's why it's important to not only check the right rates, but make sure that you're getting the right features in your home loan. Get help choosing the right home loan

Mortgage News and Articles

To break monopoly, many smaller lenders could become banks To break monopoly, many smaller lenders could become banks

The proposed change could break the Big Four’s monopoly over the mortgage market and help families get cheaper home loan rates Read more

Borrowing against the home: A strategy to pay for aged care Borrowing against the home: A strategy to pay for aged care Such debts can generally be divided into long-term and short-term loans ... Read more

NAB slashes growth forecasts for houses, units NAB slashes growth forecasts for houses, units Numerous factors, including tighter credit rules and the growing supply of new stock, have reined in Australia’s seemingly unstoppable housing market boom ... Read more

Broking industry wants to reform commission structures Broking industry wants to reform commission structures It argues that scrapping commissions altogether would push up the interest rates paid by consumers ... Read more

More mortgage news and articles

Sponsored Links

Friday, Jul 21, 2017
Top Featured Rates
Top Bank Rates

Get help choosing the right home loan

Whether you're a first homebuyer, looking to refinance, or investing, it's important to have the right loan for your needs. Just fill in a few details below and one of our trusted mortgage advisers will contact you.

A quick & easy way to find the right home loan
  • Purpose of mortgage
  • Household Income
    $
  • How much do you want to borrow?
    $
  • How much deposit do you have?
    $
  • How much is your house worth?
    $
  • How much do you still owe on your mortgage?
    $
  • What type of mortgage do you have?


  • How much is your new home?
    $
  • How much do you want to borrow?
    $
  • How soon do you want a mortgage?
Next
  • First name
  • Last name
  • Where do you live?
  • Phone number

Special Offers

Related Keywords