Consumer Credit Policy changes effective Sunday 17 May 2020.
In line with the current outlook and economic environment, Westpac are continuing to review home loan policies to ensure that they are lending responsibly and managing customer risk appropriately.
Therefore , to reflect the impact of restrictions associated with COVID 19 pandemic have had on self employed workers, Westpac will be making some temporary changes to their consumer credit policy which they will regularly review over time
Here is the major change to their lending policy for Self employed borrowers for Owner occupied and Investment Home loans
a. When the borrower is self-employed or if self-employed income is used in the loan application, the maximum LVR will be 80%. Mortgage Insurance is not available. Under their medical policy the max is 85% . A loan application is classified as self-employed, when:
- The applicant is self-employed.
- Any self-employed income is used in the application.
- An applicant who receives PAYG income from a business wholly or partially owned by their spouse.
- The applicant’s income is assessed using self-employed applicants policy.
Also, Westpac are introducing a cap to 70% on new loans in postcodes effected in tourist arears, particularly Queensland .
No doubt other lenders will be reviewing their policies and we will keep you updated