Westpac has announced new higher mortgage rates for borrowers who have less than 20% equity in their home.
At the same time, they have repositioned their standard rates as being for those who have at least 20% equity or more.
This is a switch in focus, responding to the RBNZ macro-prudential policy moves to introduce LVR "speed limits".
Previously, 'standard rates' applied to all borrowers and specials were usually targeted at high equity loans. Now that is reversed.
Westpac's new rates for all new home lending over 80% LVR are
25 month fixed term 6.50%
50 month fixed term 7.10%
Low equity premiums may also apply. See our table here »
Their standard fixed rates are now only available for new loans under 80% LVR, for loans over the 80% LVR limit that are already in place, and for home loans that are exempt from the RBNZ's LVR restrictions.
The new lending policy is effective today at 8:30am.
See all advertised mortgage rates here.
The new Westpac over 80% LVR rates compare as follows:
In addition to the table above, TSB has a 15 month 'special' rate of 5.15%.
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Mortgage choices involve making a significant financial decision so it often pays to get professional advice. A Roost mortgage broker can be contacted by following this link »
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Fixed mortgage rates
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2 Comments
Just so I understand this , is Wespac going to increase the rate charged on existing loans where the LTVR is over 80%.?
If so , I wonder just how they are going to manage this , because if house prices increase at 8% - 10% per annmum as they have done , thats about 16% to 20% in 24 months.
So Inflation will take care of the problem as the gearing with in theory will fall outside the range range in about 24 to 30 months which is a very short time frame
Westpac are going to have to revalue the loan book ( and each loan) very regularly , or face legal action for unfair trading , if they dont manage it properly
Westpac are going to have to revalue the loan book ( and each loan) very regularly , or face legal action for unfair trading , if they dont manage it properly
How do unsecured lenders supporting these loans get in on this legal racket to claim they are unfairly rewarded since their loaned assets are no better than equity under OBR and yet get rewarded as if they had the securiity of a Local Authority?
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