Bankwest has made it harder for investors to secure loans, in a sign that APRA’s campaign on lending standards is taking effect.
As of today, Bankwest will apply a maximum LVR of 80 per cent for investment purposes, including the purpose of shares.
That cap will apply to all loans in an application that contains a loan for investment purposes.
The new guidelines will apply to all new applications, pre-approvals moving to formal approvals and applications being re-assessed for a material change.
Bankwest will no longer offer special pricing on its Complete Variable product for any loan whose primary purpose is investment.
However, special pricing for owner-occupied purposes will remain.
Bankwest said its position as a “responsible lender” had prompted this review of investor LVRs.
“In recent weeks, Australian banks have started tightening investment lending to comply with expectations set by APRA,” according to the bank.
“These expectations aim to ensure sustainable growth in the home loan investment sector to protect both investors and the home loan market.”
Bankwest said there would be no impact on existing investment home loan customers or customers whose application had already reached conditional approval status.
[Related: APRA ‘turning up the dial’ on banks]