Non-major halts new investment lending

by Miklos Bolza09 Feb 2017
Bankwest has announced it will slam the brakes on new investment lending and bring in additional charges for existing loans for property investors.
 
“[The bank] will no longer accept applications from new customers seeking to refinance their stand-alone investment lending from other financial institutions,” a Bankwest spokesperson told Australian Broker.
 
The change affects a very small number of applications, they added.
 
Bankwest has also increased charges on investment loans by up to 60 basis points and introduced stricter terms and conditions for expatriate and overseas customers, reported the Australian Financial Review.
 
The spokesperson said Bankwest would continue to “assess investment lending applications from current and prospective customers who meet relevant criteria within risk appetite”.
 
This aligns with regulatory guidance and the bank’s commitment to supporting a stable national housing market and sustainable economy.
 
“Bankwest will continue to monitor the impact this change has on customers and the market, in order to maintain prudent lending and a sustainable business.”
 
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COMMENTS

  • by Bede Taylot 9/02/2017 9:05:34 AM

    So as I understand it, Bankwest will not "slam the brakes on new investment lending", this only relates to stand alone investment refinancing. Am I correct?

  • by Ivanhoe Broker 9/02/2017 9:26:07 AM

    Hi Bede,
    It would be great if you could spend a few hours putting together a good investment deal, send through to Bankwest, and let's us know how you go. I have a feeling you will run into internal credit score issues.