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Starting from June 5, Westpac Banking Corporation will reduce the maximum loan-to-value ratio (LVR) on new and existing interest-only lending to 80%. This change will apply across the board to owner-occupier loans, residential investment loans, and other loan products.
In addition, Westpac will no longer accept new standalone refinance applications for owner-occupier interest-only home loans from an external provider, effective from June 5. Internal refinancing for owner-occupiers will still be allowed for interest-only loans, subject to maximum LVR requirements and customer suitability.
Principal and interest, as well as residential investment interest-only refinancing, will not be impacted by these changes.
The Sydney-based bank will continue to waive the repayment switch fee for those wishing to move from interest-only to principal-and-interest repayments. Customers of the Premier Advantage Package can switch at any time and won’t incur additional costs. However, for fixed loans, certain break costs may apply.
It can be confusing to know whether to get a variable rate or fixed rate mortgage, and what features are important. That's why it's important to not only check the right rates, but make sure that you're getting the right features in your home loan. Get help choosing the right home loan