Westpac is looking for new investors with 90% LVR Interest Only lending

– Original post by SMH-

Westpac will allow property investors to take out interest-only loans with smaller deposits than it previously demanded, as the country’s biggest lender to landlords seeks to lift its mortgage growth.

In the latest move by a bank to target the recovering property investor market, Westpac is raising the maximum loan-to-valuation ratio (LVR) for interest-only loans to property investors to 90 per cent, from 80 per cent.

Westpac-owned subsidiaries including St George and Bank of Melbourne on Monday told mortgage brokers of the new policy, and the change will also apply to Westpac-branded loans. New interest-only loans to owner-occupiers will remain subject to an LVR cap of 80 per cent.

The bank’s general manager of home ownership, Will Ranken, said financing property investors was a key part its lending strategy. “We believe this change will provide a competitive proposition for investors looking to purchase their next property,” Mr Ranken said.