Weekly Kaths Credit Crunch 23rd September

Resimac:

Prime Alt Doc product provides:

• ✔ Reduced interest rate at 80% LVR,
• ✔ Interest only and investment loading waived,
• ✔ Increased LVR to 90%,
• ✔ Loan amount up to $3,500,000 and

Self-managed Super Fund (SMSF).

• Loan amounts up to $1,000,000
• Max LVR of 90% (inclusive of LMI capitalisation)
• Principal and Interest (P&I), and Interest Only (IO; converting to P&I within 10 years) available

Go Flexi powered by Pepper Money

Commercial Niches/Highlights

• Loan sizes up to $5mill (at 50% LVR)
• LVRs up to 80% for both Full Doc and Alt Doc
• 100% Offset Account
• One credit sign off for both Resi and Commercial Applications
• Debt consolidation, including ATO debts
• 30-year loan terms available
• Flexible cash out policy
• Credit impaired customers
• Redraw & split loans
• Single form Alt Doc
• NO clawback!

Acceptable Commercial Securities
Boarding Houses, Industrial units, Medical suites, mixed use residential and commercial, shopfronts/retail, showrooms, strata offices, vacant industrial land, warehouses, NDIS properties, Childcare facilities, student accommodation, rooming houses.

ANZ

Effective today - Monday 23 September 2024, you will no longer be able to create or submit ANZ Home Loan applications via Loanapp.

Effective today, Monday 23 September 2024, to align with current market conditions; ANZ is making changes to the exception postcode lists for Luxury Properties in Mortgage Credit Requirements (MCR).

Income Verification Options for Self-employed customers requiring Lenders Mortgage Insurance - As previously communicated on Thursday 5 September 2024, ANZ is making changes to the income verification options for home loan applications with self-employed income requiring Lenders Mortgage Insurance (LMI). Effective Monday 23 September 2024, ANZ continues to accept 1 year of financials for income verification for self-employed customers that do not require LMI (including customers eligible for LMI Waivers).

For self-employed customers requiring LMI, there will now be two options for verifying income.

Option 1: Customer provides 1 year's financials and a 20% shading will apply to the Net Profit Before Tax (NPBT).

Options 2: Customer provides 2 years financials - ANZ will complete variance testing on the NPBT by comparing the most recent year against prior year. NPBT may be shaded depending on the variance.

Document Requirements will be dependent on the verification option selected.

Paramount

3 Months ABN Uber/Courier

Cars up to $100k

• NO Doc
• 3 - 18 Months ABN
• GST Registered
• 10% Deposit Home Ownership 
• 20% Deposit Non Homeowner
• Dealer Buy Only
• Clean Credit 
• Uber, Courier Drivers and Small Businesses
• Suitable for Cars and Vans

CBA

CommBank is launching a new one year self employed policy tomorrow: With this new policy, your eligible self-employed customers can have their serviceability assessed using only their most recent year financial information! 

This policy will empower you to do more for your self-employed customers, providing faster decisions and giving you more confidence with every submission. 

To be eligible, customers must meet the following criteria:

• Business has been trading for more than 2 years;
• Active CommBank Business Transaction Account (BTA) with at least one deposit made; You can download a guide on how to open a BTA here.
• LVR ≤ 80%;
• Total CommBank home lending < $3m;
• Servicing is achieved using 90% of the eligible self-employed income (ApplyOnline will automatically shave the income when you select One Year Financial Information method); and
• Personal applicants only - excludes non-personal borrowers and guarantor loans.

In ApplyOnline, you will see a new drop-down menu for self-employed income where you will be able to select the applicable income verification method for your customer. The options will be: 

• Standard Assessment;
• Specialised Professions; and
• One Year Financial Information.

When you complete an application using the One Year Financial Information or Specialised Professions method, you will only need to enter the most recent financial year fields. For the previous year, you will need to enter $0 into the Net Profit Before Tax field in ApplyOnline and when using the Serviceability Calculator.

📢Other News:

📢 The vote on the federal government’s Help to Buy shared equity scheme has been postponed for an additional two months. The government’s long-delayed shared equity scheme that aims to support more first home buyers into market has been delayed further after the Australian Green Party and the Coalition voted to postpone voting on the bill.

Labor’s Help to Buy scheme, which was first announced by the Albanese government in 2022 as part of the Safer and more affordable housing measure, aims to support up to 40,000 Australian households to purchase a home of their own.

Under Help to Buy, low- to middle-income earners would only be required to have a deposit of 2 per cent (or more) to qualify for a standard home loan with a participating lender without needing to pay lenders mortgage

📢 Fixed rates on the move downwards. Remember rate lock or discuss rate lock with your customers. Members - please check our library, we have the rate lock process for every lender listed including the forms to complete.

📢 Coffee and Credit tomorrow – talking all things Simplified Self Employed. 1 hour Deep Dive – register here for FREE: https://www.thebrokersbible.com.au/offers/bcpFGzha/checkout

📢 I am BEYOND excited to share that The Brokers' Bible is a FINALIST in the Australian AI awards for AI Innovator - Mortgage Broking🌟

📢 Our new templates to help you educate your community and build your brand: