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.

Westpac rolls out new offer for mortgage guarantors

westpac building  ac westpac building  ac
Reporter 4 minute read

The major bank has launched a new term deposit offer for guarantors providing security for a home loan.

Westpac Group has announced the introduction of a new term deposit rate offer for guarantors providing security for a mortgage under the existing Family Security Guarantee.

Effective from Friday, 23 October, eligible guarantors supporting a home loan customer using a two-year term deposit will receive a 2.29 per cent interest rate on guaranteed funds.

The term deposit offer is subject to the following eligibility criteria:

Advertisement
Advertisement
  • The mortgage application must have a total value exceeding $150,000
  • The guarantor must provide a minimum deposit of $5,000
  • The guarantor deposit cannot exceed 20 per cent of the loan value
  • Interest must be paid monthly or annually.

Westpac noted that following the initial two-year term, the term deposit will revert to the customer rate and must be reinvested at the preferred term, interest rate and interest frequency until the required loan-to-value ratio is achieved and the guarantee can be released.

This latest offer follows Westpac’s move to expand the list of acceptable family members who can provide a guarantee.

Westpac also expanded the range of acceptable loan purposes for guarantor applications to include refinances and home improvements, provided they are funded via progressive drawdowns.  

Last month, the bank also revealed that it would no longer require independent legal advice to be sought for guarantee income.

[Related: Major bank overhauls guarantor policy]

PROMOTED CONTENT


Westpac rolls out new offer for mortgage guarantors
westpac building  ac
TheAdviser logo

If you’re feeling overworked and overwhelmed in this fast-paced mortgage market, it’s time to make some changes, and the Business Accelerator Program can help! Work smarter, not harder, in 2022 and beyond, visit the website here to secure your ticket.

westpac building  ac

 

more from the adviser
Stephen Moore headshot

Breaking News

Brokers will dictate future of Choice, FAST, PLAN: White

After its management restructure, Loan Market Group will continue...

Peter Lock Kerry Betros Heritage

Breaking News

Heritage leaders address merger proposal concerns

The chairman and chief executive of Heritage Bank have addressed ...

uptick graph

Breaking News

Wisr reports 113% loan book growth

The non-bank lender originated a record $132 million over the las...