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.

Advantedge updates credit policy

reviewing document ta reviewing document ta
Reporter 1 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”.

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

Are you a new-to-industry broker in the process of growing your business? Then there’s some great news: The Adviser’s New Broker Academy is back in 2021 and will provide you with essential insights into cutting-edge tools, strategies and processes to fast-track to success. Don’t miss your chance to attend. To secure your FREE place, visit newbroker.com.au now!

reviewing document ta

 

more from the adviser
Renee Tocco

Breaking News

Prospa acquires brokerage

The SME lender has acquired a commercial finance brokerage and we...

Housing construction

Breaking News

Stamp duty, supply blocking housing affordability: REA

Reforming stamp duty, increasing housing supply and further exten...

suburb

Breaking News

First home buyers flee big cities

Analysis of broker-originated loans has shown that their first ho...