Westpac no LMI 85% LVR for PPOR's

Lenders are hungry to balance their investment/owner occupied loan books and none more so than Westpac.

As such they are rolling out no LMI 85% LVR for all owner occupied properties.

The loan will be assessed as per LMI conditions but Westpac will pay for the LMI. The property must settle by the 30th September 2015.

Interesting to see if any lenders with high investment loan books will follow.

 

Very creative offer. I suspect this will generate a lot of additional PPOR business for them.

 

How will they police the PPOR 'condition'?

People's circumstances 'might change' after settlement.......

pinkboy

 

And how will poor first home buyers come up with 15%. This is an outrage.

 

Its true - they won't be policing it. Situations can change and they won't want an update on it (+ APRA won't know any better!)

But from a serviceability perspective, many investors require the rental income from that property to service.

So there's one indirect 'control' in there.

Cheers,
Redom

 

Would be difficult I suspect. Like you said - plenty of people convert an owner occ to an IP down the track.

Hopefully they don't pull the plug on this early like ING did with their one week 90% no LMI promo.

 

That doesn't make sense.

If Westpac think it's a PPOR, there is no rental income anyway.....

pinkboy

 

Have you heard if this applies to existing customers looking to refinance or new customers

 

Would they consider rent if you rent out your current PPOR (now IP) to buy another PPOR?

 

May sound like a silly question but what happens if you still want to borrow at 90%.
Will the premium be based on 10% over LVR or 5%?

 

Yes

 

Thats true pb.

Point was an investors borrowing power is significantly greater with the rental income being used than for a PPOR purchase (assuming they're coming of a base where there's no other rental cost thats offsetting it).

 

90%

 

When does this offer begin?

 

In VIC you sign a PPOR Stat dec which tells them fairly clearly what it would be used for.

 

However its interest rate will differ alittle ? Probably 0.25% + than the current rate?

 

Offer starts 8th July and settlement must be by 30th September so not a huge window. Depending on how successful the campaign is they may extend (I don't think they will though).

Rate isn't going to be higher as Westpac doesn't price on LVR. The assessment of the application will be based on LMI rules/policy.

 

Hi, so will you be comfortable if Westpac sent all of your mail to the new PPOR?

 

This offer was how i got onto property market in 2007 when me and my wife bought our PPOR (and our first property) in Cherrybrook (still living there now). Only Westpac has this offer at that time which allowed us to borrow more than usual without LMI and get the house we want (4 bedder for long term family planning).

Sure I can borrow with other banks but my wife hated paying LMI at that time, so I am thankful with Westpac with that option at that time.