The Australian Financial Review recently reported that Westpac is giving ‘risky’ property investors less than one month to find another lender amid growing concerns about the impact of rising rates, falling values and oversupply.
Apparently, the bank is sending single-page letter to investors warning it can “no longer support our commercial relationship with you”, adding it will work with the borrower to help them find a new lender.
The brief letter informs borrowers Westpac is a responsible lender, claims it can no longer support the relationship and volunteers to help them find another lender. Some of the affected borrowers have been told they have until 20 October – or less than one month – to find a new lender.
According to the report, the Westpac letters are typically being sent to interest-only borrowers with multiple properties and high loan to value, usually 80 per cent, or above. The investors often have up to six properties.
Should you receive such a notification, please contact Chan & Naylor Finance immediately to discuss opportunities. Shaken by the Royal Commission many banks are becoming very conservative in their lending practices. But there are some lenders with more generous lending practices – and surprisingly low rates.
Recent figures produced by the Reserve Bank of Australia show these lenders increasing the amount lent by five per cent a month, filling the gap left by the major lenders.
Aside from loans assistance, have a look at our other accounting and advisory services that we do to help you achieve greater success.
Chan & Naylor Group has nationwide offices in North Sydney, South West Sydney, Sydney, Pymble and Parramatta in New South Wales, Melbourne, Moonee Ponds and Hawthorn in Victoria, Brisbane and Capalaba in Queensland, and East Perth in Western Australia that can assist you with your loan applications as well as any property tax or business tax enquiries that you may have. Contact us today.