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OCT 06 2023
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Simplify Your Mortgage: Westpac's Game-Changing Refinancing Policy

Posted by: Prosperity Finance

Really?? You don’t need to verify income for refinancing home loan?

You may have heard that Westpac has introduced a new policy for refinancing your home loans in recent days. Many customers  are unsure about what this product is, whether other banks have it, and if you no longer need to check income when refinancing your bank loans. Today, We will help you understand this new policy, answer your questions, and identify opportunities for you. 


What is refinancing? 

Refinancing is a term that most of you are probably familiar with. If you have a mortgage, you can transfer your mortgage from one bank to another. 


Why consider refinancing? 

  • You may be dissatisfied with your current bank. 
  • Refinancing can get you cashback, which is a cash rebate. 
  • Optimize your current loan structure, such as extending interest-only payment periods, reducing cash flow expenses, or extending the loan term to increase refinancing capacity, and more. 
  • There's a chance to apply for better loan products which suit you better under your current circumstances, 


What are the changes been made by this new policy? 

Traditionally, refinancing and applying for new loans are in a very similar processes which involve assessing your loan eligibility, requiring you to provide similar documentation. 

Westpac's new policy is not a new loan product. It just simply simplifies the refinancing application process, allowing eligible customers to no longer provide income verification and bank statements. Approvals are made based solely on the income, expenses, and loan amount declared by the customer. 

However, it's important to note that: 

They still consider your income; they just no longer require you to provide documentation to verify it. 

Not all types of income will be used to calculate loan eligibility. The bank's recognition of income categories, calculation methods, and acceptance criteria has not been changed. 

A credit check is still required to review any adverse records and your previous loan and credit card applications with other institutions. 

Furthermore, this policy only applies to refinancing. If you apply for other types of loans, the process remains the same as before. 

Currently, no other banks have followed suit with this new policy. Only Westpac offers this policy. 


What are the conditions for this loan policy? 

  • The refinanced amount must not exceed the existing loan amount. 
  • The post-refinancing repayment amount must not exceed the current repayment amount. 
  • Your current loan must have been in place for at least 12 months. 


Who will benefit from this? 

  • Customers who want to refinance but dislike excessive paperwork. 
  • Customers with loans from non-bank institutions: Banks have had strict income requirements for loans in recent years, and sometimes customers' incomes are not recognized or significantly discounted, leading them to seek loans from non-bank institutions. 
  • Customers with mortgages at HSBC who can't transfer to mainstream banks. HSBC recently ceased its lending operations in New Zealand, requiring existing customers to transfer their loans upon maturity. Those unable to transfer will have their loans taken over by acquisition firm Pepper Money. 
  • Customers with irregular incomes (e.g., frequent overtime or self-employment) who want to refinance. 
  • Customers who have wanted to refinance but have been unable to for various reasons. There are many reasons for this, and the most effective way is to contact us for an evaluation. 
  • Customers who like Westpac's loan products. For example: Redraw facility and Offset product.
    For example, you can quickly access any extra repayments you've made, known as redraw. Also, if your loan is held under a company or trust, and you want to hedge your loan, other banks can only hedge loans under personal names, while Westpac can hedge loans under companies or trusts, saving you a significant amount of interest and giving you easy access to your funds and you can redraw the funds once your home loan is on floating interest rate again – after your fixed home loan expired. 


We hope that today's content has helped you better understand Westpac's new policy. If you or your family and friends are interested in this policy or have any questions, please feel free to call 09 930 8999. 

Tags:

Really?? You don’t need to verify income for refinancing home loan?

You may have heard that Westpac has introduced a new policy for refinancing your home loans in recent days. Many customers  are unsure about what this product is, whether other banks have it, and if you no longer need to check income when refinancing your bank loans. Today, We will help you understand this new policy, answer your questions, and identify opportunities for you. 


What is refinancing? 

Refinancing is a term that most of you are probably familiar with. If you have a mortgage, you can transfer your mortgage from one bank to another. 


Why consider refinancing? 

  • You may be dissatisfied with your current bank. 
  • Refinancing can get you cashback, which is a cash rebate. 
  • Optimize your current loan structure, such as extending interest-only payment periods, reducing cash flow expenses, or extending the loan term to increase refinancing capacity, and more. 
  • There's a chance to apply for better loan products which suit you better under your current circumstances, 


What are the changes been made by this new policy? 

Traditionally, refinancing and applying for new loans are in a very similar processes which involve assessing your loan eligibility, requiring you to provide similar documentation. 

Westpac's new policy is not a new loan product. It just simply simplifies the refinancing application process, allowing eligible customers to no longer provide income verification and bank statements. Approvals are made based solely on the income, expenses, and loan amount declared by the customer. 

However, it's important to note that: 

They still consider your income; they just no longer require you to provide documentation to verify it. 

Not all types of income will be used to calculate loan eligibility. The bank's recognition of income categories, calculation methods, and acceptance criteria has not been changed. 

A credit check is still required to review any adverse records and your previous loan and credit card applications with other institutions. 

Furthermore, this policy only applies to refinancing. If you apply for other types of loans, the process remains the same as before. 

Currently, no other banks have followed suit with this new policy. Only Westpac offers this policy. 


What are the conditions for this loan policy? 

  • The refinanced amount must not exceed the existing loan amount. 
  • The post-refinancing repayment amount must not exceed the current repayment amount. 
  • Your current loan must have been in place for at least 12 months. 


Who will benefit from this? 

  • Customers who want to refinance but dislike excessive paperwork. 
  • Customers with loans from non-bank institutions: Banks have had strict income requirements for loans in recent years, and sometimes customers' incomes are not recognized or significantly discounted, leading them to seek loans from non-bank institutions. 
  • Customers with mortgages at HSBC who can't transfer to mainstream banks. HSBC recently ceased its lending operations in New Zealand, requiring existing customers to transfer their loans upon maturity. Those unable to transfer will have their loans taken over by acquisition firm Pepper Money. 
  • Customers with irregular incomes (e.g., frequent overtime or self-employment) who want to refinance. 
  • Customers who have wanted to refinance but have been unable to for various reasons. There are many reasons for this, and the most effective way is to contact us for an evaluation. 
  • Customers who like Westpac's loan products. For example: Redraw facility and Offset product.
    For example, you can quickly access any extra repayments you've made, known as redraw. Also, if your loan is held under a company or trust, and you want to hedge your loan, other banks can only hedge loans under personal names, while Westpac can hedge loans under companies or trusts, saving you a significant amount of interest and giving you easy access to your funds and you can redraw the funds once your home loan is on floating interest rate again – after your fixed home loan expired. 


We hope that today's content has helped you better understand Westpac's new policy. If you or your family and friends are interested in this policy or have any questions, please feel free to call 09 930 8999. 

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