the adviser logo

Mutual bank updates serviceability calculator

by reporter4 minute read

As of today, Teachers Mutual Bank will make changes to its loan origination servicing calculator, which will require brokers to select the desired product and the correct product’s interest rate.

From today (17 September), Teachers Mutual Bank (TMB) will update its loan origination servicing calculator available through the TMB Broker Portal and NextGen.Net’s ApplyOnline system.

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

As well as updating the minimum benchmark figures used in the bank’s serviceability assessment to reflect the Q2 2019 Household Expenditure Measure, there will be new mandatory requirements for brokers when using the revised Loan Origination Servicing Calculator.

Users will now need to select the desired home loan product and enter the correct product interest rate at that time. 


The calculator will automatically add the interest rate buffer and determine whether to use the assessment rate or the floor rate to assess serviceability.  

TMB – which includes Firefighters Mutual Bank, UniBank and Health Professionals Bank – lowered its interest rate floor from 7.25 per cent to 5.5 per cent and increased its buffer rate to 2.5 per cent on 26 July, in response to APRA’s changes to its home lending guidance, in which it scrapped the 7 per cent interest rate floor for mortgage assessments and increased the buffer rate to 2.5 per cent.

As of today (17 September), the calculator will automatically add the interest rate buffer and determine whether to use the assessment rate or the floor rate to assess serviceability.

TMB has advised that applications that have been conditionally approved prior to today, but not funded, do not need to be reassessed under the new lending policy. 

Likewise, applications where the conditional approval has expired (such as a 90-day approval period), will be assessed using the applicable lending policy at that time.  

However, all new applications submitted from today (17 September) onwards will be assessed under the new lending policy. 

[Related: Serviceability changes could be ‘offset’ by expense process]

Mutual bank updates serviceability calculator
calculator money dollars ta
TheAdviser logo
calculator money dollars ta


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


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...

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 &...

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 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