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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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.