Major bank to foot bill for LMI

by Julia Corderoy06 Jul 2015
Westpac has announced it will pay the mortgage insurance premium for eligible customers on LVRs up to 85%.

This offer will apply for new owner occupier home loan applications received between 6 July and 31 August, and which must settle by 30 September 2015. It will only be available on new Rocket Repay Home Loans, Fixed Option Home Loans and Flexi First Options Home Loans.

“These Westpac promotions provide real savings for local Australian owner occupiers wanting to achieve their dream of home ownership - we are providing an opportunity to encourage more Australians into the housing market,” Tony MacRae, general manager Westpac Broker Distribution said.

“The third-party distribution network is an integral part of Westpac's growth strategy, and according to the latest MFAA quarterly figures indicate well-over 50% of mortgage consumers are using a mortgage broker. Westpac wants to remain the No.1 bank for overall broker service and value, so our purpose here is quite simple - we are helping more Australians own their homes sooner with the help of their mortgage broker, and that's a key priority and focus for Westpac.”

Brokers will be required to enter the promotion code “80-85% LVR – No LMI Promotion” in the submission comments to ensure their customers receive the special offer. The application will be assessed under Lenders Mortgage Insurance credit policy rules where the customer would normally pay the LMI premium. At settlement the premium will be paid by Westpac and will not be charged to the customer or capitalised to the loan.

The offer also coincides with a limited time new home loan cash back offer to the mortgage broker market.


  • by Clarke Kent 6/07/2015 9:06:05 AM

    This is the same company that stuck it into brokers during the GFC and cut trail and upfronts and then through in minimum lending volumes to boot!

    I have no confidence in Westpac then now or in the future.

  • by Jonny King 6/07/2015 9:17:23 AM

    Interest rate up and down...You don't buy houses?
    Petrol Prices fluctuate you don't drive car?

    Come on growth up! Australia Mortgage 50% already written by Brokers. No one right or wrong!