The major bank has made changes to its consumer credit policy, which will come into effect this weekend.
Westpac Bank has issued a notice to mortgage brokers on the latest changes to its consumer credit policy around documentation, estimated market valuations, and translation checklists, among other things.
Effective from Saturday (27 April), brokers and customers will be able to submit supporting documentation digitally, including via email.
The documents can be downloaded directly from relevant providers’ websites, scanned, or be in the form of a photograph captured on a mobile device.
Current policy requires physical letters from a credit, service provider, or employer.
If an email contains all the information that is usually required in a letter, it may also be accepted.
Further, as part of the updates made to the format of Westpac’s genuine savings, equity and customer contribution policy, loan repayments above the contracted amount may be accepted as a source of tier 1 genuine savings.
Valuation policy has also been revised to require no amendments to be made to the customer-estimated market value within an application once a valuation of any type has been completed.
Westpac is also advising brokers to use the updated Translation Checklist PC2466, which produces a gross income figure that can be inputted into an e-lodgement system, from this Saturday (27 April).
The major bank has additionally reminded brokers in its memo to ensure the appropriate loan-to-value ratio (LVR) is applied when a lending scenario has multiple loan features with different LVR rules.
The latest updates build on announcements made recently that Westpac and its subsidiary banks would be increasing the maximum age of verification documents from six weeks to two months (between the date of production to the date of formal application), which includes new documents such as:
Earlier this month, the major bank also announced reductions of up to 20 basis points for both new and existing customers of fixed rate mortgages.
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