Powered by MOMENTUM MEDIA
SUBSCRIBE TO OUR NEWSLETTER SIGN UP
Powered by MOMENTUM MEDIA

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.

Lenders make credit policy changes

document policy ta document policy ta
Reporter 4 minute read

Two lenders have announced changes to their credit policies to ensure compliance with responsible lending measures, effective immediately.

National Australia Bank (NAB) and Homeloans Ltd (in which NAB is a major shareholder) have implemented credit policy changes that will tighten lending provisions.

The two lenders have introduced a “minimum monthly board/rental/living at home” expense.

The $500 monthly expense will be applied to borrowers who do not live in their home following settlement.

Advertisement
Advertisement

Brokers will therefore need to answer a new question in the minimum board policy which will be included in the serviceability calculator.

According to Homeloans, the changes aim to ensure that it “continue[s] to lend responsibly” and “make it clearer and simpler for [brokers] to deliver a great customer experience”.

Homeloans has also increased its maximum LVR from 90 per cent to 95 per cent for owner-occupier, principal and interest vacant land loans and reduced its minimum loan facility amount from $30,000 to $20,000.

Homeloans’s current policy will be applied to all new loans (including increases) submitted prior to 11:59pm on Sunday, 28 January, while its new policy will be applied to all applications lodged after this date.

It noted that its Ultra Plus Serviceability Calculator will be updated to reflect the credit policy changes.

PROMOTED CONTENT


[Related: Credit conditions ‘the tightest they’ve been in 15 years’]

Lenders make credit policy changes
document policy ta
TheAdviser logo

The not-to-be-missed Accountants Daily Strategy Day will travel through Melbourne and Sydney in August to equip accounting professionals with the latest industry updates and tips for modern practice management as well as the latest cutting-edge technology, processes, strategies and trends shaping the future of accounting. Visit the website for more information: www.accountantsdaily.com.au/strategy-day

document policy ta

 

more from the adviser
David Hyman

Breaking News

Brokers promote competition in lending: Lendi

Brokers are driving competition in the mortgages sector and chang...

money au ta

Breaking News

SME fintech closes $25m raise to fund expansion

An SME lender has raised $25 million in equity to fund the ‘rap...

loan application

Breaking News

Hot Property: The biggest property headlines from the week 26 to 30 July

The weekly round-up of the biggest news stories from across Momen...