Required Deposits For New Borrowers Applying of Home Loans
If you are hoping to get that dream house you have been wishing for then prepare to save for and shell out a substantial amount of cash. Despite the availability of home loans, Westpac demands an minimum deposit of $37,500 in your bank accounts in order to qualify for their average home loan. Your dram house will just have to wait for now until the policy becomes friendlier to first home buyers.
Beginning this year, Westpac has informed its managers as well as the mortgage loan brokers regarding this new policy requiring new customers additional requirement. In order to get a loan, they need to qualify for the loan-to-valuation ratio of 87 percent as compared to the earlier 92 percent. In layman’s terms, this simply means that new borrowers are required to have higher deposit to get a loan worth $250,000. They will also need to be able to afford the monthly repayment scheme of $1726 for a 25 years loan.
Just December last year, Westpac raised its variable home loan rates by 45 basis points. This comes right after an official 25 point rate increase, making the bank a market leader with its 6.76 percent on a standard home loan. This was done despite the protests of prospective borrowers joined by the federal government.
This new set of requirements proves to be harder at Rams, the leading brokers of Westpac. They are responsible of writing more than 20 percent of the home loans of the bank. It was said that a loan passing through Rams calls for a loan-to-valuation ratio of 85 percent as compared to the earlier 90 percent. Low-doc loans are also difficult to acquire with a loan-to-valuation ratio that should not be higher than 80 percent, two notch lower than the earlier 82 percent.
It appears that the only way for potential borrowers to be able to use the old rates of the loan-to-valuation ratio is for them to have a banking tie with Westpac. This entails a simple deposit account like a bank savings account, which you need to have for a minimum of 6 months. Those existing borrowers are exempt with the newly set policy.
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