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Westpac home loan expenses tests toughened to weed out liar loans

Michael Janda |  12 April 2018  |  News

AWestpacustralia's second biggest home lender is further tightening lending standards by asking more detailed questions about exactly how much prospective loan customers spend and on what.

Key points:
Westpac is increasing expenses categories from six to 13
The bank wants staff and brokers to probe loan applicants for details about their spending

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Westpac will continue to use the HEM as a minimum household spending benchmark
Westpac has updated is credit policies to improve the way it measures the household spending of people applying for loans.

From next Tuesday, the bank will increase the number of expenses categories from six to 13, getting customers to provide much more detail about what they spend money on in an effort to ensure they do not neglect to declare various regular expenses.

Westpac's current loan application includes fields for basic expenses, childcare, education, insurance, telephone, internet and others.

 


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