Mortgage News

Westpac have introduced a tighter loan to value ratio which will mean new customers will need to save another $12,000 to qualify for an average home loan.

Westpac surprised the whole mortgage industry this week by announcing that it has raised its standard variable rate by 45 basis points to 6.76% which is now almost double the amount of the reserve banks increase. Now Australias second largest home lender will require a larger deposit from first-time borrowers, thus tightening its LVR from 90% to 87%

This will mean a larger deposit will be needed when borrowing money. However with other options available to the public choices are also found with brokers. Oasis Home Loans are one company that have competitive rates within the finance industry.

Broker News has reported that Westpac Bank has discounted 0.20% off selected customer mortgages in what appears to be a response to the negative press surrounding its large interest rate rise over the RBA. Westpac denies that this action was taken to subdue customer backlash. The Bank stated that it was simply normal customer relationship activities. Simon Reibelt from Oasis Home Loans Northern Beaches saw this response by Westpac as positive, as ongoing customer relationships and relationship building as one to keep existing customers and to generate ongoing new business. Northern Beaches mortgage holders who are Westpac customers may have received this additional discount.