Westpac Bank has recently changed its lending policy making it harder to get a loan to purchase a first home. Westpac has effectively changed its policy to ensure that borrowers provide more deposit towards the purchase.
Westpac has advised its Brokers that new customers will not secure a loan unless they can meet a loan to value ratio of 87%, instead of the former 92%.
Under a RAMS loan, the rules are tougher. A borrower must meet a loan to value ratio of 85%.
Changes to lending policy will make it tougher for borrowers to get into the market. Essentially, homebuyers will need to save a bigger deposit to be able to purchase. We will wait to see whether all the other major lenders also change their policy.
For the full story, click the link below
http://www.news.com.au/money/property/westpac-requires-higher-deposit-for-first-home-loans/story-e6frfmd0-1225822160592
If you are looking for guidance and assistance in the property market, I can be contacted below
Dean Carver
Solicitor
Solicitors Property Centre
http://www.spc.net.au/
