Powered by MOMENTUM MEDIA
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.

BOQ softens lending verification requirements

boq ad boq ad
Malavika Santhebennur 2 minute read

The non-major bank has announced changes to its home and personal lending policy, including removal of LVR restrictions on high-density apartments.

BOQ has issued an update on its home and personal lending policy, announcing three changes that will relax verification requirements for loan applicants.

The first key change includes a reduction in statement requirements for rental repayment history supporting genuine savings.

The bank has reduced statement history from six months to three months for lender’s mortgage insurance deals where genuine savings are being supported by rental payment history.

Secondly, the bank has removed further validation requirements for non-genuine savings. The bank explained that where non-genuine savings are already held in a bank account, the lender will only be required to record the source of funds, and to provide a copy of the account statement.

Advertisement
Advertisement

“The only exception is where non-genuine savings have been received by the applicant via a gift,” the bank said in a broker news update.

“In this instance, the lender will be required to confirm that the funds held are non-refundable.”

In instances where funds have not yet been received, the bank will require written evidence in a document relevant to the source of those funds.

The third key change is the bank will remove loan-to-value (LVR) restrictions on high-density apartments for both owner-occupier and investment loans, with standard apartment/unit LVRs to apply.

The bank will still require a full property valuation for lending secured by a high-density located unit. Rental income shading will remain at 70 per cent, and minimum property size restrictions will remain.

The bank’s lending booklet has been updated to reflect these changes.

The changes will come into effect on 2 December.

[Related: BOQ expands third-party team]

BOQ softens lending verification requirements
boq ad
TheAdviser logo
boq ad
Malavika Santhebennur

Malavika Santhebennur

Malavika Santhebennur is the features editor on the mortgages titles at Momentum Media.

Before joining the team in 2019, Malavika held roles with Money Management and Benchmark Media. She has been writing about financial services for the past six years.

more from the adviser
trophyaward 850 Revealed: The winners of the Better Business Awards NSW/ACT

The leading lights of the broking industry from across NSW and AC...

prospa new 2 Prospa reshuffles leadership team

The SME lender has announced changes to its leadership team follo...

Wisr ta Wisr originations jump 90%, profit falls

The neo-lender has reported a $12.9 million loss in the six month...

FROM THE WEB