Resimac adds new layer of scrutiny for Victorian borrowers

The changes have been implemented to reflect continued economic uncertainty in the state off the back of ongoing restrictions imposed to curb the spread of COVID-19.   

“Given the ongoing restrictions in Victoria and the recently released ‘roadmap’ detailing when these restrictions are likely to be eased, additional documentation and information should be submitted in support of applications due to the potential impact these restrictions are having,” Resimac told brokers.

At present, Resimac requires brokers to provide:

• mandatory broker notes on all files over the impact of COVID-19 on the applicants, including if there has been no impact (employment, income, expenses, personal etc)
• the most recent quarterly business activity statement to support the last two years financial statements/tax returns for full-doc self-employed applicants.

However, in addition to the above, brokers have been asked to provide the following for Victorian clients:

• the most recent 30 days business bank statements showing turnover for full-doc self-employed applicants;
• one of the payslips provided must reflect the most recent pay period as per the applicant’s pay cycle for PAYG applicants; and
• detailed notes outlining an applicant’s ability to meet their repayment obligations on an ongoing basis if the bank statements or payslips reveal “a change from normal conditions”.

Resimac is the latest of a number of lenders to lower its risk appetite in response to the COVID-19 crisis.

Earlier this week, Suncorp Bank announced several changes to its income verification policy, including the exclusion of bonus income from the capacity to repay calculation.

Resimac’s policy changes also follow its decision to waive its standard valuation fee for its specialist full doc and specialist alt doc products from today.

[Related: Lender waives valuation fees on specialist loans]