Westpac announces significant lending changes

Westpac has decided to stop lending to one segment of the market following a review of its risk policies.

In a letter to brokers obtained by Mortgage Business, the major bank says it will no longer lend to offshore customers who are not citizens or residents of Australia with an eligible visa.

“It continues to be Westpac's priority to support Australian citizens and permanent residents (including applicable visa classes) living outside of Australia on their journey to own a home or investment property in Australia,” the bank said.

Effective immediately, changes to applicants earning foreign income policy will occur.

For non-residents, no lending is permitted even if the applicant income is not relied on to meet serviceability.

More to come.

[Related: Analysis: Chinese money and Australian real estate]

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