Investor Presentaiton
Australian mortgage portfolio loan-to-value ratios.
Mortgage credit quality
Australian housing loan-to-value ratios (LVRs) (%)
100
90
99
80
70
65
60
50
640
40
26
20
26
20
3210
■2H22 drawdowns LVR at origination
■Portfolio LVR at origination
■Portfolio dynamic LVR
39
45
1
171515
11
1212
667
1 0 20.5
N/A
/ 0.6
80<=90 90<=95 95<=100
>100
Sep-21 Mar-22 Sep-22
balance
balance
balance
0
0<=60
60<=70 70<=80
Chart does not add to 100 due to rounding.
Australian mortgage portfolio LVRS
Serviceability assessment creates a buffer for borrowers
Loans are assessed at the higher of
or
The customer rate, including any life-of-loan discounts, plus the
serviceability buffer of 3.0% (up from 2.5% in October 2021)
The minimum assessment rate, called the "floor rate”, currently 5.05%
• Interest only (I/O) loans are assessed based on the residual principal and
interest (P&I) term using the applicable P&I rate, plus a 3.0% buffer
•
Fixed rate loans are assessed on the variable rate to which the loan will
revert after the fixed period, plus a 3.0% buffer
Applicant gross income band
(2H22 drawdowns, % by approved limits)
■Owner Occupied
■Investment Property
33
33
46
LVR at origination (%)
73
73
73
7
3
Weighted
averages²
Dynamic LVR1 (%)
50
47
49
49
<75k
LVR of new loans³ (%)
71
71
10
70
82
Westpac Group 2022 Full Year Results Presentation & Investor Discussion Pack
9
5
12
0
Chart does not add to 100 due to rounding.
1 Dynamic LVR is the loan-to-value ratio taking into account the current loan balance, changes in security value, offset account balances and other loan adjustments. Property valuation source CoreLogic. 2 Weighted average LVR calculation considers
size of outstanding balances. 3 Average LVR of new loans is on rolling 6 months.
75k to
100k
100k to
125k
125k to
150k
12
150k to
200k
20
20
16
200k to
500k
>500k
Westpac GROUP
17
7View entire presentation