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

Discussion in 'Property Finance' started by Natedog, 7th Jul, 2015.

  1. Natedog

    Natedog Well-Known Member

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    Just had my broker email me this BIG news!!
     
  2. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

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

    Natedog Well-Known Member

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

    Big Will Well-Known Member

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    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%
     
  5. Natedog

    Natedog Well-Known Member

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    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
     
  6. euro73

    euro73 Well-Known Member Business Member

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

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    tick tock.............




    ta
    rolf
     
  8. sumterrence

    sumterrence Well-Known Member

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    :( 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 :(
     
  9. Natedog

    Natedog Well-Known Member

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    .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
     
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  10. Redom

    Redom Mortgage Broker Business Member

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    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.
     
  11. bythebay

    bythebay Well-Known Member

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

    Pins Well-Known Member

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

    Natedog Well-Known Member

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

    jpcashflow Well-Known Member Business Member

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    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!!
     
  15. sumterrence

    sumterrence Well-Known Member

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    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.
     
  16. MTR

    MTR Well-Known Member Premium Member

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

    MTR:)
     
  17. Big Red

    Big Red Well-Known Member

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    Great buying oppurtunity
     
  18. mcarthur

    mcarthur Well-Known Member

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    Broker just told me my 90+LMI pre-approval's done and his contacts say it should be ok - phew!
     
  19. No Probs

    No Probs Well-Known Member

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

    JustInTime Member

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    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.