Powered by MOMENTUM MEDIA
the adviser logo
Lender

Heritage updates credit policy

by Staff reporter4 minute read
Credit policy

The Toowoomba-based bank has announced that it has updated its credit policy for some parts of the income verification process.

Heritage stated this week that it has made several updates, effective immediately, following a review of its credit policy.

To continue reading the rest of this article, create a free account
Already have an account? Sign in

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:

Advertisement
Advertisement

- 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]

Heritage updates credit policy
hand documents ta
TheAdviser logo
hand documents ta

JOIN THE DISCUSSION

You need to be a member to post comments. Register for free today

MORE FROM THE ADVISER

Anja Pannek CEO PLAN

Anja Pannek named MFAA CEO

The board of the Mortgage & Finance Association of Australia (MFAA) has confirmed that Anja Pannek will be the...

READ MORE
mike felton mfaa ta jdayl5

Aggregator heads reflect on Mike Felton’s legacy

Following on the news that Mike Felton is to retire next month and step down as chief executive of the Mortgage &...

READ MORE
melanie kiely afg ta mzh8zm

AFG non-executive director steps down from board

Australian Finance Group Ltd (AFG) has advised that Melanie Kiely will be stepping down from the AFG board to...

READ MORE
magazine
Read the latest issue of The Adviser magazine!
The Adviser is the number one magazine for Australia's finance and mortgage brokers. The publications delivers news, analysis, business intelligence, sales and marketing strategies, research and key target reports to an audience of professional mortgage and finance brokers
Read more