Westpac Consumer Banking Chief Executive, George Frazis, said that while house price growth might ease in some areas, demand from owner occupiers and the fundamentals remained strong. This was despite “pockets of stress” in Westpac’s home loan provisions, mostly related to Western Australia and Queensland.


Frazis’s reasoning was strong population growth in the past four years, a sound economy at 3%, a jobless rate of 5.8% and record low interest rates.


With Westpac having $363 billion of exposure to mortgages, he said the bank was alert to risks and had strengthened lending standards by lifting serviceability buffers and writing fewer loans with large leverage.