Website Notifications

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

Non-major bank updates serviceability requirements

adelaide bank ta adelaide bank ta
Reporter 4 minute read

A non-major bank has made changes to its minimum serviceability ratio and updated its commercial debt serviceability calculator.

Adelaide Bank has announced that it will increase its minimum serviceability ratio for loan applications with a loan-to-value ratio (LVR) over 90 per cent from this Thursday (16 May).

The bank has said that, for any application submitted from 16 May, the minimum serviceability ratio for applications above 90 per cent LVR (inclusive of Lenders Mortgage Insurance) will increase to 1.25.

Speaking of the change, Darren Kasehagen, Adelaide Bank’s head of third-party banking, told The Adviser: “We have made these adjustments to improve credit quality and balance the inflows of business that we are currently writing. 


“We review our offering regularly to take into account a range of variables.”   

Amanda James, Adelaide Bank’s head of broker distribution, added that Apply Online metrics will be updated “at a later date” and apologised for any inconvenience caused.

The bank is currently on a four-business-day service level for commencing full assessments of loans with all relevant documentation.

As well as updating its minimum serviceability ratio for high LVR loans, Adelaide Bank also announced that, effective from today (13 May), it has updated the HEM tables within its SmartSuite Commercial Debt Serviceability Calculator.

Ms James added that no further application submissions using the old version of the calculator will be accepted after the close of business on Friday (17 May).


[Related: Connective partners with Adelaide Bank on white labels]

Non-major bank updates serviceability requirements
adelaide bank ta
TheAdviser logo

If you’re feeling overworked and overwhelmed in this fast-paced mortgage market, it’s time to make some changes, and the Business Accelerator Program can help! Tickets are on sale now. Work smarter, not harder, this year.

adelaide bank ta


more from the adviser
Sydney Sydney mayor launches business support, calls for JobKeeper

Sydney’s mayor has urged the federal government to resurrect Jo...

mortgage payments money Banks accused of bias against BNPL in lending process

An executive from buy now, pay later provider Zip has echoed repo...

Brisbane bridge sunset ta Expect Olympics-fuelled growth in Qld, says broker

South-East Queensland can expect a spike in residential and comme...