Resi will be revealing a range of different product and policy enhancements over the coming months. So keep an eye out for the announcements
What’s Changing?
1. 90% rental income allowance (10% shading)
Rental income shading has been reduced from 20% to 10%.
This applies across our entire Essentials product range, meaning for investment property scenarios we will be able to lend your clients more!
2. Prime Alt Doc Loan size / LVR matrix changes
You told us that our loan sizes needed to increase, especially in the capital cities. And we listened. As a result of this feedback, the loan size and LVR limits have been lifted for Prime Alt Doc, up to $2m (for Metro locations)*.
The new loan size limits in place:
3. Living expense requirements streamlined
Based on your feedback, we are introducing changes to streamline the Living Expense verification process. We’ll do this by reducing the instances where you need to provide us with Bank Statements.
Rather than bank statements being required on these products when the NSR falls below 1.25:1, we have introduced a simple annual surplus approach which reduces the instances where bank statements are required – to understand this update, contact your relevant BDM
4. Streamlining our processes to speed up turnaround times including modifications to ASIC searches, PAYG verifications and credit history explanations.
Our new servicing calculator is linked in this article.
Other changes being introduced today, include:
- Aggregation limits are increasing.
- Removal of genuine savings requirements for loans above 90% LVR. More details will follow soon.
Look out for our next announcement on the policy enhancements and for more information, please see our website, alternatively please contact broker support or your BDM.
