Advantedge updates credit policy

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

Reporter

Last Updated: 19 September 2019 Published: 20 September 2019

Written by Reporter

Last Updated: 19 September 2019

Published: 20 September 2019