Westpac keeps up the chase on property investors as rising rates, CGT hike cast shadow over housing
Despite rising loss rates, higher interest rates and potential tax changes, the nation’s second biggest bank is sticking to its strategy of winning the investor segment.
Westpac chief executive Anthony Miller still sees major upside in targeting lending to property investors despite rising interest rates, a weakening economy and likely tax changes in next week’s budget combining to dampen sentiment.
In an interview after handing down Westpac’s half year result in which the bank grew home lending by 7% in the face of an economic slowdown, Miller said the investor cohort remained a key part of its growth strategy.
“Banking property investors is still something we’re very focused on and I definitely think we’ve made some progress on that,” he said.
Miller made the comments just hours before the Reserve Bank hiked the official cash rate to 4.35% and the federal government mulls changes to capital gains tax and negative gearing.
