Powered by MOMENTUM MEDIA
the adviser logo
Lender

Westpac announces major home lending changes

by James Mitchell4 minute read
Westpac

New parents will have their paid parental leave and return to work income recognised when they apply for a home loan, Westpac has announced.

The major bank introduced the new measure after its research found that 88 per cent of Australians believe a bank should look beyond an individual’s short-term situations, such as parental leave, when assessing borrowing potential.

To continue reading the rest of this article, create a free account
Already have an account? Sign in

The research also revealed that 82 per cent of Australians agree it is fair that a bank considers the future income of a person on parental leave when assessing loan suitability.

“As part of our ongoing commitment to customers, we continually review our policies and processes to make sure we provide products and services that suit their needs. We’ve listened to our customers and today’s announcement is a positive change that will benefit many current and future families across Australia,” Westpac’s director of women’s markets Ainslie van Onselen said.

Advertisement
Advertisement

“Recognising paid parental leave and back to work income is about creating financial choice and an even playing field for working families, whether that be renovating, upgrading or buying a new property,” Ms van Onselen said.

“Our research also shows 63 per cent of females who own a home believe their needs and requirements from their home grow as their family expands.”

Westpac was one of the first publicly listed companies to introduce paid parental leave in 1995 and the first to introduce superannuation on unpaid parental leave to eligible employees in 2010.

“These industry-leading initiatives had flow-on effects throughout corporate Australia and helped reverse the Australia-wide retirement savings gap experienced by female employees,” Ms van Onselen said.

To be eligible for a loan while on parental leave, for up to 12 months, customers will need to provide proof of a return to work date and income, and demonstrate they can service the loan while on parental leave.

[Related: Big four address 'evolving threat' to broking industry]

 

Westpac announces major home lending changes
westpac  x
TheAdviser logo
westpac  x

James Mitchell

James Mitchell

AUTHOR

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

JOIN THE DISCUSSION

You need to be a member to post comments. Register for free today

MORE FROM THE ADVISER

mark pesce futurist ajxjkn

Automation is changing, not replacing, the role of finance brokers

On Thursday (4 August), the Australian Financial Review (AFR) ran a story with the headline: “Finance brokers top...

READ MORE
des hang carbar zaheer jappie carclarity ta qtvnqr

CarClarity confirms partnership with car subscription platform

Established in March 2020, CarClairty is a finance platform that connects car buyers with more than 30 different...

READ MORE
anthony albanese profile ta vtpifc

Further grants confirmed for flood survivors, $47m pledged

According to a statement released by the federal government, the Back Home grant will be made available to impacted...

READ MORE
magazine
Read the latest issue of The Adviser magazine!
The Adviser is the number one magazine for Australia's finance and mortgage brokers. The publications delivers news, analysis, business intelligence, sales and marketing strategies, research and key target reports to an audience of professional mortgage and finance brokers
Read more