Westpac max 80% LVR for new investment loans as of 8th July

Just had my broker email me this BIG news!!

 

Yep first major - let's see who's next.

 

Posted this in finance section, but it's too big not to put in General thread section!! BOOM!!! APRA has a big stick obviously!

 

Don't know if it constitutes being in general as well as financial.

Yes it is big news but ANZ still doing 90% for investors and sure you can still find providers doing 95%

 

ANZ won't allow you to capitalise LMI over and above a 90% lend as of tommorrow also.

So borrowing 90% you'll have to stump up for LMI out of your own pocket.

I figured it would get more discussion in General thread.

Maxing at 80% is big news for investors, IF other lenders follow suit

 

Westpac are being treated to a bigger APRA stick than most others.

 

I should have max myself out to buy one more..... now I can officially tell myself to stop as I won't be able to purchase any more any time soon unless I can get my promotion this week

 

.What happens to those that are about to need to refinance an interest only period about to expire on an IP that may have been a 90%+ LVR originally?

If there's been little growth in the properties value it could mean copping paying P and I moving forward if the new val doesn't drop it below 80%

Could be big hit to an individuals cash flow if they are stuck doing this on multiple properties

 

Agree with Rolf - most will fall into line over time. This is similar to AMP breaking on the actuals calculator in May (a month or so before others). I suspect the others will fall into line here.

On another note, i think this gives more scope to fire more darts with monetary policy easing if required.

 

Would it impact on employees of westpac?
Can they still get 90pc for IPs?

 

Do we know if this will affect loans already pre-approved or just new loans?

 

Broker told me you are safe if an application has been done and an application number has been generated prior to tommorrow

 

I think there will be a few investors who will find it tough in the coming year or two. I have had more and more clients change their loans to P and I as they would rather pay down debt to create a buffer.

There are some lenders out there who are still doing IP as 90% LVR so no biggy at the moment!!

 

The 90% LVR without LMI was an incentive not an exception, so I would say it applies to everyone that are looking for investment loan regardless you are Westpac employee or not.

 

For those interested, don't believe this policy effects RAMS, Westpac the umbrella for this group.

MTR

 

Great buying oppurtunity

 

Broker just told me my 90+LMI pre-approval's done and his contacts say it should be ok - phew!

 

Glad I got my 97% loan through with them earlier in the year! Big shake up happening eh.

 

Directing an increase to OO lending, and lowering Investment lending polices, as they head towards the end of the banking year. I guess they want to balance their books, and have reassessed risk policies.