Westpac is tightening mortgage lending on properties it considers to be highly vulnerable to flooding and landslips.
The bank said the changes would affect fewer than 2.5% of mortgage applications, with lending decisions assessed individually. Westpac will not automatically reject applications or charge higher interest rates based on natural hazard risks.
The bank also began offering customers property-specific risk reports to assist purchasing decisions. Westpac said the move reflected its concerns that ‘climate change’ could increase the frequency and severity of extreme weather events.
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