Heritage updates credit policy

The policy now requires brokers to ensure that, for new customer relationships, and for borrowers who do not have an existing transaction account with the bank (or if the borrower’s salary is not credited into the transaction account), a computer-generated payslip with a minimum of three months year-to-date (YTD) income and tax figures must be provided.

If the payslip does not cover three months year-to-date income, then one of the following must also be provided:

- Three most recent months transaction account statements from the borrower’s financial institution showing salary credits (which shows the name of the borrower’s employer).

- Three most recent months computer-generated payslips detailing: the borrower’s name, the employer’s name and ABN (if applicable), a breakdown of allowances and deductions paid, gross/net income and tax paid for the pay period.

- A letter from the borrower’s employer (signed by the payroll officer, director, manager or proprietor) with a letterhead, stating the borrower’s name, occupation and type of employment (full-time, part-time, casual, etc.).

For borrowers employed by family or through a family-owned or family-controlled company, brokers will need to provide a computer-generated payslip with a minimum of three months year-to-date income and the latest Tax Assessment Notice is to be provided.

Where the most recent computer-generated payslip does not cover three months YTD, the latest Tax Assessment Notice and one of the following must also be provided:

- The last three months transaction account statements

- Three most recent months computer-generated payslips

For those with Centrelink income, submissions will need to include a letter, dated within the last six weeks, from Centrelink outlining the type of payment (e.g., FTB Part A, Disability Pension, etc.); details of who benefits are payable for (children’s names and ages, where applicable); the amount of payment; and the break-up of payment (e.g., FTB Part A, Part B, Rent Assistance, Pharmaceutical Allowance).

All changes are effective immediately.

[Related: New loan offers deposit-free mortgage to FHBs]