CBA subsidiary Bankwest scraps LMI for big tech workers in bid to take on Macquarie
The challenger bank will allow borrowers in priority industries including tech, finance and government to take on more leverage despite a weaker property market.
The Commonwealth Bank’s digital challenger brand Bankwest is waiving mortgage insurance for a cohort of high value customers in certain industries as part of a bold growth strategy to take on Macquarie.
Capital Brief can reveal the bank has now waived LMI when lending to employees of big tech companies, banks, and federal government agencies as well as accountants and lawyers with a deposit of just 10% of a property’s value.
In an email sent to brokers last week, the bank said the policy would create “more opportunities to support professional customers while helping them reduce upfront borrowing costs”.
Traditionally, such policies have been restricted to medical professionals such as doctors who enjoy job security and predictable but significant wage growth. The banks are comfortable providing higher leverage to the low-risk, high-value borrowers cohort, granting them a higher loan-to-value ratio (LVR) of over 80%.
