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Westpac curbs loans to foreign buyers in Australia

Westpac is also reducing the loan-to-value ratio around lending to Australian applicants that rely on foreign income to 70 from 80 per cent. File photo / NZ Herald
Westpac is also reducing the loan-to-value ratio around lending to Australian applicants that rely on foreign income to 70 from 80 per cent. File photo / NZ Herald

Westpac in Australia is stopping lending to foreign buyers of property.

Westpac Australia said this afternoon it is now refusing all mortgage applications from non-residents.

The bank is also reducing the loan-to-value ratio around lending to Australian applicants that rely on foreign income to 70 from 80 per cent.

"In line with Westpac Group's responsible lending practices, we have strengthened our policies regarding nonresidents lending and foreign income, which represent a very small component of our loan book," Westpac said.

A spokeswoman for Westpac New Zealand said the changes only applied in Australia.

Earlier this month, ANZ said Australian applications for mortgages that relied solely on foreign income would not be accepted.

Commonwealth Bank - the parent of ASB - also announced restrictions on lending to foreign buyers

- NZ Herald

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