Login
ISCOVER
The major bank has launched a new term deposit offer for guarantors providing security for a home loan.
Westpac Group has announced the introduction of a new term deposit rate offer for guarantors providing security for a mortgage under the existing Family Security Guarantee.
To continue reading the rest of this article, please log in.
Looking for more benefits? Become a Premium Member.
Create free account to get unlimited news articles and more!
Looking for more benefits? Become a Premium Member.
Effective from Friday, 23 October, eligible guarantors supporting a home loan customer using a two-year term deposit will receive a 2.29 per cent interest rate on guaranteed funds.
The term deposit offer is subject to the following eligibility criteria:
- The mortgage application must have a total value exceeding $150,000
- The guarantor must provide a minimum deposit of $5,000
- The guarantor deposit cannot exceed 20 per cent of the loan value
- Interest must be paid monthly or annually.
Westpac noted that following the initial two-year term, the term deposit will revert to the customer rate and must be reinvested at the preferred term, interest rate and interest frequency until the required loan-to-value ratio is achieved and the guarantee can be released.
This latest offer follows Westpac’s move to expand the list of acceptable family members who can provide a guarantee.
Westpac also expanded the range of acceptable loan purposes for guarantor applications to include refinances and home improvements, provided they are funded via progressive drawdowns.
Last month, the bank also revealed that it would no longer require independent legal advice to be sought for guarantee income.
[Related: Major bank overhauls guarantor policy]
JOIN THE DISCUSSION