Westpac tightens lender borrowing as APRA controls take effect

Westpac tightens lender borrowing as APRA controls take effect
Westpac tightens lender borrowing as APRA controls take effect

Westpac will require new property investors to have a deposit of at least 20%, as APRA controls are starting to take effect.

According to the Australian Financial ReviewWestpac will from yesterday cap loan-to-valuation ratios (LVRs) for new property investor loans at 80%.

It is the toughest limit imposed by a major bank so far as ANZ Bank introduces its 90% cap on LVRs for investor loans.

National Australia Bank last month capped investor home loan LVRs at 90%, while the Commonwealth Bank has advised it will not take the tax breaks investor borrowers receive from negative gearing into account when LVRs on investor loans exceed 90%.

Jonathan Chancellor

Jonathan Chancellor

Jonathan Chancellor is one of our authors. Jonathan has been writing about property since the early 1980s and is editor-at-large of Property Observer.

Tags: 
Property Loans

Comments

Be the first one to comment on this article
What would you like to say about this project?