Banking News

Consumer mortgages no longer accepted for business loans

Consumer mortgages no longer accepted for business loans

(14 June 2018 – Australia) Westpac has announced that it will stop accepting consumer home loans for predominantly business purposes from 18 June.

Under the Group’s updated consumer credit policy, consumer mortgages (including loan top-ups) will not be accepted if more than 50 percent of the new loan is expected to be used for business purposes.

Instances where the predominant purpose of the loan is business-related, a business product must be offered and the application must be referred.

The bank has said it is in the process of developing its own business products, which it cited as one of the reasons for not renewing its direct referral relationship with online small business lender Prospa.

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