Borrow
Westpac introduces a savings buffer for distressed mortgage customers
Westpac is looking to make life a little easier for financially distressed customers by introducing a savings buffer to its existing suite of mortgage products.

Westpac introduces a savings buffer for distressed mortgage customers
Westpac is looking to make life a little easier for financially distressed customers by introducing a savings buffer to its existing suite of mortgage products.

The measure promises to give customers undergoing hardship additional breathing room when it comes to their monthly finances.
According to Westpac, their team of consultants will work with customers to determine the amount they can free up within their budget to create a savings buffer, potentially via waiving fees, deferring repayments or reducing the interest rate of a customer’s debt.
“While most customers have resumed mortgage repayments following deferrals at the start of the COVID-19 pandemic, there are around 4,500 accounts where individuals and families require more tailored and flexible support to get back on their feet,” Westpac director, customer vulnerability and financial resilience Catherine Fitzpatrick said.
“After meeting their monthly expenses, we have found some customers have no income left to prepare for life events like medical emergencies, fixing a household appliance or a car breakdown.”
“The savings buffer is designed to help customers in severe financial stress keep their heads above water,” she said.
Although the program is currently only in a pilot stage, Westpac said they expect that the savings buffer could net customers at least an extra $100 of savings per month.
The move has been welcomed by advocacy groups like Good Shepherd.
“It is critical that we continue to develop and invest in safe, fair and affordable lending options to alleviate some of the pressure on those experiencing adversity, without burdening them with long-term debt that is difficult to repay,” said Good Shepherd CEO Stella Avramopoulos.
According to Financial Counselling Australia chief executive Fiona Guthrie, “When creditors expect every single cent of a person’s uncommitted income to go towards repaying debt, all they are doing is setting people up to fail.”
“This is a really sensible initiative from Westpac, and we hope other banks will follow suit,” she said.
About the author

About the author


Loans
CBA launches digital home loan with 10-minute application
According to the bank, Unloan will provide a single low-cost interest rate to borrowers with an application time of as little as ten minutes. ...Read more

Loans
Are central banks weighing the economic pain of rate hikes?
The hype around interest rate hikes usually centres around the urgent and fundamental need to alleviate the consequences of inflation – but does this monetary policy do more harm than good? ...Read more

Loans
As rates begin to rise, how much more will new borrowers pay?
Mortgage holders could be asked to pay over $1,000 more per month due to rising interest rates. ...Read more

Loans
New investor home loan commitments climb to a record high
The value of new investor loan commitments reached $11.7 billion in March. ...Read more

Loans
Major banks announce interest rate changes
Following the RBA’s first rate hike in 11 years, the big four banks have tweaked their home loan variable interest rates. ...Read more

Loans
Up to $400bn of fixed rate home loans tipped to roll off into variable rates
A surge of refinancing is anticipated in the next couple of years. ...Read more

Loans
‘Liar loans’ most prevalent at ANZ, survey finds
UBS has identified an increase in factual misstatements coming from ANZ’s mortgage customers. ...Read more

Loans
How will rising rates impact mortgage stress?
Mortgage holders could face thousands of dollars in extra repayment costs per year as a result of impending rate hikes. ...Read more

Wrapping up an eventful 2021
Listen now

What Omicron means for property, and are units right for first-time buyers? What is equity crowdfunding? Are industry super funds tapping into member funds to save their skins?
Listen now

Will housing affordability improve in 2022? Will buy now, pay later become the norm? Why are Aussies staying in failing super products?
Listen now

Who really benefits from crypto ETFs? How will the RBA respond to rising inflation? Could a mandate help address unpaid super?
Listen now

Loans
CBA launches digital home loan with 10-minute application
According to the bank, Unloan will provide a single low-cost interest rate to borrowers with an application time of as little as ten minutes. ...Read more

Loans
Are central banks weighing the economic pain of rate hikes?
The hype around interest rate hikes usually centres around the urgent and fundamental need to alleviate the consequences of inflation – but does this monetary policy do more harm than good? ...Read more

Loans
As rates begin to rise, how much more will new borrowers pay?
Mortgage holders could be asked to pay over $1,000 more per month due to rising interest rates. ...Read more

Loans
New investor home loan commitments climb to a record high
The value of new investor loan commitments reached $11.7 billion in March. ...Read more

Loans
Major banks announce interest rate changes
Following the RBA’s first rate hike in 11 years, the big four banks have tweaked their home loan variable interest rates. ...Read more

Loans
Up to $400bn of fixed rate home loans tipped to roll off into variable rates
A surge of refinancing is anticipated in the next couple of years. ...Read more

Loans
‘Liar loans’ most prevalent at ANZ, survey finds
UBS has identified an increase in factual misstatements coming from ANZ’s mortgage customers. ...Read more

Loans
How will rising rates impact mortgage stress?
Mortgage holders could face thousands of dollars in extra repayment costs per year as a result of impending rate hikes. ...Read more