Big four bank Westpac offers a wide array of property investment loans. But how do they compare with other lenders’ products for investors?
How Do Westpac Investment Loans Compare?
The good
- One of the top 10 lenders with the best serviceability (borrowing power) for investors
- Competitive interest rates for all products such as basic variable, package variable and fixed rate with pricing discounts available for package productseven for LVRs above 90%
- Good refinance cashback offers
- Fully assessed pre-approval
- Favourable debt-to-income (DTI) policy
- Accepts share and dividend income for serviceability
- Accepts inner city (high-density) properties as security for loans with up to 90% Loan-To-Value Ratio (LVR)
- Waived LMI available on 90% LVR investment loans for medical, accounting and legal professionals
- For medico loans, the most recent year’s documents are sufficient
- Delegated Underwriting Authority (DUA), which means a more flexible credit policy for investment loans with LMI
- No bank statements required if refinancing from a lender whose repayments history is evident that is reporting on Comprehensive Credit Reporting (CCR)
- Private banking is available for high-net-worth customers
The bad
- Long approval turnaround time
- Last two years’ financials required for LMI loans; does not accept low-doc loans
- Loans secured by mixed-use properties, serviced apartments and studio apartments are all restricted to 70% LVR or less
- Does not accept rental income from Airbnb properties
- Not great with the borrowing capacity if it’s the fixed rate product as they assess it based on revert rate which is much higher whereas most other lenders use the post fixed discounted variable rate which is lower than that of revert rate (this is the case with Owner Occupied as well)
What Are The Different Types Of Westpac Investment Loans?
Westpac has different home loan types that are suitable for different types of investors.- 1. Westpac Flexi First Option Investment Property Loan: This is the bank’s basic home loan, with a low interest rate, minimal features, no fees for loan maintenance and no annual fees. Investors can choose a variable rate, fixed-rate or interest-only repayment type with this loan.
- 2. Westpac Rocket Investment Loan (Repay): This home loan comes with a discounted interest rate, optional offset account, unlimited extra repayments, split loan facility and redraw facility, with an annual package fee of $395.
- 3. Westpac Line Of Credit: A variable line of credit that gives investors easy access to the equity in their property for uses such as renovations, buying a new car, going on holiday, or a deposit for an investment property.