Powered by MOMENTUM MEDIA
SUBSCRIBE TO OUR NEWSLETTER SIGN UP
Powered by MOMENTUM MEDIA

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.

Major bank tightens lending policy

westpacbuilding  westpacbuilding
Staff reporter 4 minute read

One of the big four banks has announced changes to its SMSF loans which will see the maximum interest-only repayment term halved and a $200,000 liquid assets requirement introduced.

In a communication to brokers, Westpac announced it has implemented policy changes to its SMSF Business Lending and SMSF Home Loan products, effective from 26 June 2017.

Westpac said it has reduced the maximum interest-only repayment term from 10 years to 5 years for its SMSF loans.

The bank also introduced a minimum $200,000 liquid assets requirement for SMSF loans upon application, stressing that there will be no exceptions to this requirement.

Advertisement
Advertisement

There have also been updates made by Westpac to the SMSF loans application process.

“The Statutory Declaration by SMSF Trustee document has been updated to clarify that independent financial and legal advice is to be obtained before settlement,” the bank said.

Westpac said the changes have been implemented to “protect the interests of its customers and ensure it continues to meet its regulatory requirements”.

Major bank tightens lending policy
westpacbuilding
TheAdviser logo

Are you a new-to-industry broker in the process of growing your business? Then there’s some great news: The Adviser’s New Broker Academy is back in 2021 and will provide you with essential insights into cutting-edge tools, strategies and processes to fast-track to success. Don’t miss your chance to attend. To secure your FREE place, visit newbroker.com.au now!

PROMOTED CONTENT


westpacbuilding
James Mitchell

James Mitchell

James Mitchell has over eight years’ experience as a financial reporter and is the editor of Wealth and Wellness at Momentum Media.

He has a sound pedigree to cover the business of mortgages and the converging financial services sector having reported for leading finance titles InvestorDaily, InvestorWeekly, Accountants Daily, ifa, Mortgage Business, Residential Property Manager, Real Estate Business, SMSF Adviser, Smart Property Investment, and The Adviser.

He has also been published in The Daily Telegraph and contributed online to FST Media and Mergermarket, part of the Financial Times Group.

James holds a BA (Hons) in English Literature and an MA in Journalism.

 

 

more from the adviser
Parliament house new ta

Breaking News

Major bank CEOs flag SME ‘pressure’

The heads of CBA and ANZ have acknowledged to MPs the growing pre...

boardroom

Breaking News

CAFBA announces board changes

The broker association has announced board changes following the ...

uptick

Breaking News

SME revenue divide expected to widen: ScotPac

Half of SMEs expect revenue to grow this year but a record propor...