Pursuits
Westpac, ANZ Tighten Investor Mortgage Lending as Prices Surge
This article is for subscribers only.
Westpac Banking Corp. and Australia & New Zealand Banking Group Ltd. are further tightening lending to investors in residential real estate amid efforts to cool the housing market.
Westpac, the largest lender to landlords, said in a statement Wednesday it will lend a maximum of 80 percent of the value of a home to be rented out, down from 95 percent. ANZ Bank said it cut the loan-to-value ratio to 90 percent from 97 percent, and will introduce an interest rate “floor” to ensure borrowers can repay mortgages if borrowing costs rise.