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Westpac enticing first home buyers to save

Westpac is offering a cash incentive to potential first home buyers as well as preferential treatment and special rates.

Tuesday, December 3rd 2013, 10:28AM 1 Comment

Westpac HomeSaver package is designed to help potential property owners save for their first home.
Customers will receive preferential low equity approval, a $1,000 first home booster when they take out a home loan, special interest rates and help from an e-coach.

“With new LVR restrictions limiting the number of low equity loans available, Westpac will give preference to HomeSaver customers for low equity loan pre-approvals.”
“We understand saving for a first home deposit is a major undertaking, and we want to help our customers reach this goal.  The earlier they start saving for their deposit the better,” Blair said.

One of the key objectives of HomeSaver is to help customers demonstrate strong savings behaviour. Key requirements to qualify for the $1,000 first home booster at the time of their home loan draw-down, are that a person must save for at least six months and save a minimum of $10,000 towards their deposit. 

When asked whether the bank would offer this service to brokers to use he said he was “not sure how they could use it” and that it wasn’t something they had thought about.
He said brokers could use it, but when asked if the bank would remunerate brokers to get clients to join HomeSave he said no.
Blair said the bank wasn’t going to offer this service to brokers to use as they don’t generally play in the deposit side of the business.

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Comments from our readers

On 3 December 2013 at 4:43 pm Amused said:
Whilst it is commendable that Westpac are encouraging potential borrowers to save towards a first home what exactly are they saying when they state that customers will receive preferential low equity approval under this Homesaver package? Saving $10,000 towards a first home is a small drop in the bucket compared to the actual deposit that most borrowers need currently to secure a home loan approval with these low equity restrictions in place. I have had no inkling so far that Westpac or the other banks are even vaguely interested in approving loans for customers above 80% except for very very strong servicing proposals and even then it is a struggle.

Westpac need to be a lot more upfront with their customers when they say they will receive “preferential low equity approval” That statement probably in all likelihood folks is not worth the paper it is printed on with the current LVR restrictions in place. That is simple fact. Even with a Welcome Home Loan the client will need at least 10% deposit to qualify for an approval if they meet the income and purchase price thresholds for their region.

I can see why Westpac has not come out officially to mortgage brokers with this package. Most brokers wouldn’t think to lead our clients down the garden path with statements like this. It doesn't seem to worry Westpac's marketing Dept however.

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Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
AIA - Back My Build 6.19 - - -
AIA - Go Home Loans 8.74 7.14 6.75 6.39
ANZ 8.64 7.74 7.39 7.25
ANZ Blueprint to Build 7.39 - - -
ANZ Good Energy - - - 1.00
ANZ Special - 7.14 6.79 6.65
ASB Bank 8.64 7.14 6.75 6.39
ASB Better Homes Top Up - - - 1.00
Avanti Finance 9.15 - - -
Basecorp Finance 9.60 - - -
Bluestone 9.24 - - -
Lender Flt 1yr 2yr 3yr
BNZ - Classic - 7.14 6.79 6.65
BNZ - Green Home Loan top-ups - - - 1.00
BNZ - Mortgage One 8.69 - - -
BNZ - Rapid Repay 8.69 - - -
BNZ - Std, FlyBuys 8.69 7.74 7.39 7.25
BNZ - TotalMoney 8.69 - - -
CFML Loans 9.45 - - -
China Construction Bank - 7.09 6.75 6.49
China Construction Bank Special - - - -
Co-operative Bank - First Home Special - 6.79 - -
Co-operative Bank - Owner Occ 8.40 6.99 6.79 6.65
Lender Flt 1yr 2yr 3yr
Co-operative Bank - Standard 8.40 7.49 7.29 7.15
Credit Union Auckland 7.70 - - -
First Credit Union Special - 7.45 7.35 -
First Credit Union Standard 8.50 7.99 7.85 -
Heartland Bank - Online 7.99 6.89 6.55 6.35
Heartland Bank - Reverse Mortgage - - - -
Heretaunga Building Society 8.90 7.60 7.40 -
HSBC Premier 8.59 - - -
HSBC Premier LVR > 80% - - - -
HSBC Special - - - -
ICBC 7.85 7.05 6.69 6.59
Lender Flt 1yr 2yr 3yr
Kainga Ora 8.64 7.74 7.35 6.99
Kainga Ora - First Home Buyer Special - - - -
Kiwibank 8.50 7.99 7.79 7.55
Kiwibank - Offset 8.50 - - -
Kiwibank Special - 6.99 6.79 6.65
Liberty 8.59 8.69 8.79 8.94
Nelson Building Society 9.00 7.65 7.25 -
Pepper Money Advantage 10.49 - - -
Pepper Money Easy 8.69 - - -
Pepper Money Essential 8.29 - - -
Resimac - LVR < 80% 8.84 8.09 7.59 7.29
Lender Flt 1yr 2yr 3yr
Resimac - LVR < 90% 9.84 9.09 8.59 8.29
Resimac - Specialist Clear (Alt Doc) - - 8.99 -
Resimac - Specialist Clear (Full Doc) - - 9.49 -
SBS Bank 8.74 7.74 ▼7.09 ▲6.95
SBS Bank Special - 7.14 ▼6.49 ▲6.35
SBS Construction lending for FHB - - - -
SBS FirstHome Combo 6.19 6.14 - -
SBS FirstHome Combo - - - -
SBS Unwind reverse equity 9.95 - - -
Select Home Loans 9.24 - - -
TSB Bank 9.44 7.79 7.55 7.45
Lender Flt 1yr 2yr 3yr
TSB Special 8.64 6.99 6.75 6.65
Unity 8.64 6.99 6.79 -
Unity First Home Buyer special - 6.55 6.45 -
Wairarapa Building Society 8.60 6.95 6.85 -
Westpac 8.64 7.84 7.35 6.99
Westpac Choices Everyday 8.74 - - -
Westpac Offset 8.64 - - -
Westpac Special - 7.24 6.75 6.39
Median 8.64 7.19 7.17 6.65

Last updated: 12 June 2024 4:04pm

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