As you are aware, the Reserve Bank of Australia (RBA) increased the official cash rate by a further 25bps following their February meeting.
As a result, we will be increasing the variable interest rates for all Agility-funded home loan customers by 25bps. We will also be increasing the new business variable rates across all our home loan products by 25bps – Prime (Full Doc), Prime Alt Doc and Specialist (Full Doc and Alt Doc).
These changes come into effect on Friday 17 February 2023.
For settled customers: For your existing customers with Agility-funded loans, we will be notifying them of changes to their variable interest rates and repayments shortly. We will inform them of any specific changes to their interest rates and repayments via a letter carrying your business’ branding. There will be no action required on your part.
They will be given adequate time to prepare for the changes. We also have a dedicated team who will work with customers that may need hardship assistance in appropriate circumstances.
For pre-settled customers: For all applications not yet unconditionally approved as at the effective date, future conditional approval and unconditional approval letters and loan documents will be updated with the new interest rates.
Depending on when their loan achieved conditional approval and when it settles (and accounting for recent changes to living expense classifications and benchmarking), additional serviceability testing may be required as follows:
- If conditionally approved before 1 December 2022, an additional serviceability review will be required accounting for the new interest rates at the time, before unconditional approval is provided.
- If conditionally approved on or after 1 December 2022 but before 1 January 2023, no further serviceability review is required if the loan settles before or on 15 March 2023. If the loan is to settle after 15 March 2023, an additional serviceability review is required accounting for the new interest rates at the time.
- If conditionally approved on or after 1 January 2023, no further serviceability review is required if the loan settles before or on 31 March 2023. If the loan is to settle after 31 March 2023, an additional serviceability review is required accounting for the new interest rates at the time.
For all customers who have reached unconditional approval – with documents issued and awaiting settlement – we will contact them via email to advise of their new interest rate. This email will identify Resi Agility as the funder of their loan, however customers will be directed to contact their mortgage manager for any queries they have. For those with unconditional approval, regardless of document status, no further review of their serviceability is required.
For any questions or concerns, please reach out to your Resi BDM.