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Westpac’s latest announcement to raise its Loan-to-Value Ratio (LVR) cap is a welcoming sign for property investors across Australia. 

Raising its LVR from 80 per cent to 90 per cent for new mortgages for property investors, Westpac, Australia’s largest lender of investor loans, is looking to boost growth and spur investment activity in the sector.

The announcement comes after a sharp slowdown in lending to property investors, with hopes the increase will partially reverse last year’s crackdown by the Australian Prudential Regulation Authority (APRA) which hoped to impose a 10 per cent a year speed limit on the industry.

So what does this mean for investors?

The change effectively means property investors will need a deposit of just 10 per cent compared with 20 per cent previously, making it easier for investors to enter the market and secure a property.

First Home Buyers (FHB’s) in particular may be the major beneficiaries of these latest announcements as these conditions improve their ability to enter the market, secure a loan, and purchase that first property.

And in addition to softening of these lending conditions, other banks are beginning to introduce more competitive offerings for investors across the boards. St George for example recently announced a cut-price variable home loan rate of 4.24 per cent for investors.

If you’re interested in learning more about how these conditions might suit you, speak to one of our investment advisors today.