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Jessica Darnbrough
Westpac is gearing up to capture new business by increasing its maximum LVR lending.
Yesterday, the major announced it would up the maximum amount it lends to new home loan customers from 90 per cent to 95 per cent LVR.
In a company statement, the lender said the maximum LVR for existing customers would remain unchanged at 95 per cent.
Similarly, the maximum LVR for Low Doc customers will also remain unchanged at 80 per cent.
The major’s announcement comes just one day after CBA said it would increase its maximum LVR lending to 95 per cent for all new customers.
Last month Westpac announced rate cuts of up to 80 basis points off one of its products.
The major increased its standard variable rate discount on some of its selected home loans taken as part of the lender’s Premier Advantage Package.
But while competition between the majors is heating up, RFI director Alan Shields told Real Estate Business that there may not be enough borrowers to warrant the current mortgage war.
“While it is clear that there are lot of players out there lending aggressively, the question is, is there going to be the demand from the consumer side? The indications that I have seen are that housing stock is down and consumers are not necessarily out there looking for mortgages at the moment,” Mr Shields said.
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