It says the LEM (Low Equity Margin) rates for the first two LVR tiers (80.01% - 85.00% and 85.01% - 90.00%) effective from 3 June 2015.
This change means your low deposit customers can be offered a more attractive proposition. Here’s a table to illustrate this:
We are also removing the current amount threshold on New to Bank customers (currently minimum $300,000) and will now allow over 80% LVR lending of any value for New to Bank owner occupied customers. This means that most of those smaller loans to First Home Buyers will no longer be able to be underwritten as Welcome Home Loans as they now fall within our normal Westpac credit policy. Welcome Home Loan still remains an option when the full deposit has been gifted or when it does not meet our serviceability criteria.
Please note: Customers can apply for the LEM margin to be removed once the LVR is below 80%. Proof of the value of their house must be provided (via registered valuation, desktop valuation or recent government valuation). The LEM margin will not be removed during a fixed or capped term or if the LEM has been on for less than six months.
