Westpac Not Switching from Investment to Owner/Occupier Due to Procedual Document Requirements

Pootie Tang on 02/09/2025 - 11:12
Last edited 02/09/2025 - 11:14

Hi All

After waiting four years for a house to get built I am in this temporary issue with Westpac. I was going to refinance as house worth 200k more so can use that as reason.

Call up Westpac and get put through to retention and they ask for these documents

A Utility Bill (electricity, gas or internet) dated within the last 3 months for the property where the mailing address matches the security address.
Copy of current Insurance certificate showing property usage (for example Owner Occupier/Investment)
Council rates notice for the current period or Water rates dated within the last 3 months for the property where the mailing address matches the security address.
Copy of Driver’s License (both sides) where the address matches the security address.

I have been there 3 weeks and don’t have a utility bill in my mailing address but only the site address - I had agl create an account summary with the bills I have paid with my new address - this was declined.

My insurance document does not have owner/occupied on it - it only has that on another page that they will not accept.

Council rates - as only there 3 weeks, new rates have not come out and they will not accept a letter head from the council stating I have changed my mailing address and reside at the property.

Driver’s license - changed address and took screen shots of both sides (digital) of the license and they will only accept a physical (which I have reordered)

They will not accept a stat dec saying I live at the property and said I could go into the branch with this documentation (license etc) is not acceptable. I said they could send someone to my house.

Has anyone had any issues like this in the past, it will solve itself when the bills are produced but they cannot retrospectively do this on old bills (site address, correct, mailing address is not on historical bills).

Any advice on dealing with an issue like this, its about 1.9% difference on a sizeable loan and I am not paying the principal of the build off. I did receive the FHOG and they won’t accept that as proof either. I feel crazy. What more can I do? Anyone work at a bank and have seen this issue. The mortgage takes quite a bit of my income so its about $1k saving a month.

Thanks

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closed Comments

  • boomramada on 02/09/2025 - 11:15
    +7

    Switch banks?

    • Pootie Tang on 02/09/2025 - 12:52
      -1

      Easier to stick with current bank but will be after this.

      • boomramada on 02/09/2025 - 14:14

        You even had to create a forum topic, which doesn't sound easy to me :)
        This is what I would do: walk to the CBA, ask them to price match as Owner/Occupier, then take the offer back to Westpac. Make sure to talk to a bank lender, not over the phone.

  • brendanm on 02/09/2025 - 11:15
    +1

    Refinance?

  • godofpizza on 02/09/2025 - 11:21

    did you call the home loan centre?

    • Pootie Tang on 02/09/2025 - 12:51

      Yes - no help - asked to speak to floor manager (used to work for EDS next to TMC) so know how it works.

  • Dollar General on 02/09/2025 - 11:32
    +8

    You have waited four years. Why not just wait another few months and get yourself sorted with the documents you need?

    • Pootie Tang on 02/09/2025 - 12:54
      -2

      Because it doesnt pay off the principal and im paying more than I should be. This is really bad advice.

      You are saying I should pay an extra 1k a month because of the banks outdated criteria. They happily changed my mailing address without proof so why should the loan have a bearing on the other documentaion.

      • Dollar General on 02/09/2025 - 13:07
        +3

        You asked for any advice and then proceed to criticise the advice.

  • Summoner on 02/09/2025 - 11:48

    ​Have a chat with another lender to see if they are more accommodating and offer a better rate. If not, waiting would be the only option.

    • Pootie Tang on 02/09/2025 - 12:55

      Seems crazy this is the only option. I couldnt be the only customer for Australias oldest bank that has had this happend.

      • Summoner on 02/09/2025 - 13:39
        +1

        If you want to get your electricity or gas bill as soon as possible, you can change your billing cycle to monthly if it's not already monthly.

        Otherwise, try changing providers so your current provider can issue you the final bill.

      • Jake D on 02/09/2025 - 13:45

        They rely on you not wanting to put in the effort and call another bank.
        The fact is, refinancing is usually less effort than you realise, and if you shop around can save heaps of money and find a better setup.

        • Pootie Tang on 02/09/2025 - 17:20

          Yeah thanks - everyone advising was paying too much on I/O principal was right - after speaking to them again - its now 5.85% or whatever.

          Asking for an audit as they didn't have the info on the phone and didn't want to shoot the messenger.

  • JimB on 02/09/2025 - 11:52
    +1

    1.9% p.a. difference? I'm sure it's 0.25% p.a. all things being equal (standard OO loan and standard investment loan).

    I also switched my loan from Investment to OO, I didn't have to provide any evidence at CBA, they just took my word for it and dropped the rates 0.25%.

    As above, just switch banks/refinance if they are giving you grief.

    • Pootie Tang on 02/09/2025 - 12:51

      My current interest rate on my build is 7.34%

  • mskeggs on 02/09/2025 - 12:05
    +1

    Just so I am clear, they said they would accept some of the things you have tried to supply if you take them in person to a branch, but not just via email?

    • Pootie Tang on 02/09/2025 - 12:54

      Wont take them in person or the current docs I have supplied via email.

  • Megatron on 02/09/2025 - 12:36
    +4

    1.9%? Surely not? Investment Loans vs Owner occupier is generally 0.25%?

    Try putting a complaint through and tell them that you will have to wait for those documents as you have just moved in and you would want them to backdate the interest since they are the one causing delays.

    Regarding insurance, owner vs landlord products are different with most insurers. Do you have a Home Owner insurance or a Landlord insurance? Surely you can ring your insurance company and ask them how you can provide the proof for what bank is asking?

    Other options is to refinance which would likely come at a cost of $1.5k.

    • Pootie Tang on 02/09/2025 - 12:51

      Homeowner insurance

      My current interest rate on my build is 7.34%

      • Megatron on 02/09/2025 - 12:52

        Damn.. so you are the reason why Westpac's profits are going through the roof?

        • Pootie Tang on 02/09/2025 - 12:58

          Lel - If yours is much lower - I have jelousy in my voice like Star Scream

  • joka on 02/09/2025 - 12:56
    +3

    Go to a mortgage broker and let them deal with it. They will want your business and you can deal with them directly.

  • surfingedge on 02/09/2025 - 13:02

    Complaint and AFCA

  • Far Cough on 02/09/2025 - 13:03

    Should’ve just rented

    • Pootie Tang on 02/09/2025 - 13:44

      The great australian dream

  • rawm on 02/09/2025 - 14:29

    Seems you’re stuck in the “proof of occupancy” loop Westpac loves. It will sort once bills/rates roll in, but you can speed it up. Try:

    • Go into a branch in person with ID + insurance docs
    • Ask insurer for reissued certificate clearly stating “owner occupied”
    • Set up a utility eBill at new address
    • Push for a manager escalation via retention team if not helpful

    Not fun, but once you’ve got one clean doc (rates/utility/license), the others usually fall in line. YMMV, time is precious I know, so how long to wait is anyone's guess.

  • wetsandwich on 02/09/2025 - 15:13

    Honestly seems quicker to just refinance to a proper bank than battle them for weeks
    I remember them being absurdly outdated and bureaucratic when I refinanced to them years ago, seems like nothing has changed.

    • Pootie Tang on 02/09/2025 - 17:21

      Yeah, long story, had a hardship earlier in the year and didn't want it flagged so will stay put until annual fee rollover. Thanks

  • ihbh on 02/09/2025 - 15:22

    After waiting four years for a house to get built

    What an opportunity cost (offset by any capital gains, but could have gone sideways or down)!

    How much rent do you think you could have gotten in the 4 years?

    What was the interest cost in the 4 years?

    • Pootie Tang on 02/09/2025 - 17:22

      Ahhhh.

      Probably 40k or so over 4 years, the 7% has only been apart of the last 12 months since the foundation was poured. Was a split loan on the land then progress payments on the build so probably not as bad as one would think.

      I dont know, want to live in it and not pay rent.

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