Westpac, one of Australia’s largest banks, announced a series of reforms that will affect those who wish to lend to this large bank.
According to postcode restrictions, customers must deposit a 30% deposit with the bank in order to obtain approval for loan products at large banks. Westpac ’s sub-banks, including St. George Bank, Bank of Melbourne and Bank of South Australia (BankSA), will also implement changes simultaneously and will take effect on Sunday, May 17.
A spokeswoman for Westpac said that the new regulations were the result of economic tightening during the coronavirus pandemic and affected the creditworthiness of borrowers. In a statement, she said: “With COVID-19 ’s latest changes to Australia ’s economic outlook, we are making some temporary adjustments to housing loan standards.” These updates will help by reducing the maximum loan-to-value ratio (LVR) and other measures Reduce the risk of housing loan applicants in certain affected industries and regions.
“We expect this to be a short-term adjustment, and we will continue to review our credit policy in light of the changing environment.” Among other changes announced by Westpac and its sub-banks, the difficulty of obtaining loans for self-employed borrowers is also Will improve. Starting Sunday, the maximum loan-to-value ratio for new loans will be 80%, which means those who work for themselves must prepay at least a 20% down payment.
