Powered by MOMENTUM MEDIA
the adviser logo
Borrower

Advantedge updates credit policy

by Reporter2 minute read

The white label funder has announced changes to its home lending policy to ensure that it “continues lending responsibly”.

NAB-owned wholesale funder Advantedge has announced changes to its home lending policy aimed at supporting customers in “achieving their home lending goals” and ensure that it continues “lending responsibly”.

To continue reading the rest of this article, create a free account
Already have an account? Sign in

Effective for new loans lodged from 16 September, Advantedge’s changes include:

  • Accepting granny flats and room rental as rental income, with rental income shading from holiday rentals also decreasing from 40 per cent to 20 per cent.
  • Requiring brokers to capture any expected costs associated with childcare for customers who are about to commence or are currently on parental leave.
  • Requiring brokers to provide “meaningful” details of a customer’s strategy on how they will service their loan during any leave period, and ensure it appears “reasonable” – the change applies in instances where a customer is on unpaid extended leave but will return to work and where their income is being used as part of a serviceability assessment.

Further, effective from Monday, 23 September, Advantedge will also extend the acceptable verification document period from 60 days to 90 days, making eligible all verification documents such as payslips and statements issued up to quarterly.

Documents that exceed the 90-day period will not be accepted, with the submission checklist to be updated to reflect the change.

[Related: Mutual bank updates serviceability calculator]

Advantedge updates credit policy
reviewing document ta
TheAdviser logo
reviewing document ta

JOIN THE DISCUSSION

You need to be a member to post comments. Register for free today

MORE FROM THE ADVISER

matt comyn cba speaking ta bzhun1

CBA CEO acknowledges brokers following mortgage growth

The Commonwealth Bank of Australia (CBA) has released its results for the financial year ended 30 June 2022 and...

READ MORE
wif awards 2021 crowd ta giiu3m

Submissions open for Women in Finance Awards 2022

Hosted by Momentum Media, the Women in Finance Awards is returning for its sixth consecutive year to recognise the...

READ MORE
Cameron Poolman ta

OnDeck confirms origination surge following buyout

In early February, OnDeck Australia’s (OnDeck) executives and investors collectively purchased 80 per cent of the...

READ MORE
magazine
Read the latest issue of The Adviser magazine!
The Adviser is the number one magazine for Australia's finance and mortgage brokers. The publications delivers news, analysis, business intelligence, sales and marketing strategies, research and key target reports to an audience of professional mortgage and finance brokers
Read more