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BOQ softens lending verification requirements

by Malavika Santhebennur4 minute read
Bank of Queensland

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.

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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.

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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.

“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]

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Malavika Santhebennur

Malavika Santhebennur

AUTHOR

Malavika Santhebennur is a content specialist at Momentum Media, focusing on mortgages and finance writing.

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