 Slow down in mortgage lending
While many different lenders abound the market today, Wespact will slow down in taking up above-average growth in the mortgage market, says the bank’s chief executive Gail Kelly.
Kelly also alerts people about house pricing in Melbourne that are becoming intense. Though the growth has been very strong , and the demand increases but people don’t want to see “price exaggeration”, according to her.
Westpac will now focus on average growth since market demand from first home-owners decreases and more players enter the market.
"We see growing at about system growth, perhaps a little more. We were pleased to support customers last year, but for this period we see new players coming back into the market. System growth would be what we think is the sustainable level for us," Kelly explains.
Kelly expects that the Reserve Bank of Australia (RBA) will raise interest rates again within the year, though she doesn’t want to assume how much it may climb.
According to Kelly the Reserve Bank seems to be directing the growth by lifting interest rates, which may consequently affect the demand, thus a drop off on the number of first-home buyers.
She said signs of a very strong price appreciation are seen but she did not say whether Westpac will increase its business lending practices.
She also mentioned that small businesses clients who may be under pressure with cashflow are encouraged to come to the bank directly so that they can speak about their issues and the bank can offer some help .
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