Weekly Kath's Credit Crunch 10th February 2025 🌟

ME Bank

We’ve reduced the validation requirements! For clients earning commission, we’ll now use 80% of the commission earned over the last six months, annualised.

• One payslip showing at least six months of year-to-date commission income; or
• If there’s less than six months of year-to-date commission:
• Six months’ payslips showing commission income; or
• A letter from the employer showing six months of commission, plus one payslip reflecting commission income.

Other non-base income types? No problem.

For overtime, shift allowances, penalties, and bonus income, we’ll consider 80% of income. And for essential service workers, we can even consider 100% (excluding bonus).

For full details and to find out what documents are required, check out ME’s Home Lending Policy and V&V Procedures on the Broker Portal.

Effective Saturday, 1 March 2025, the $2,000 purchase cashback offer will come to an end.

VMG

100 acres with an executive style dwelling.

Bank of Melbourne/ Westpac

From Friday 14 February 2025, we are no longer offering our Employee (Staff) and Contractor Home Loan Special Package from the Broker channel. This means you can still write home loan applications for Westpac Group Employees; however, they will not be eligible for, or receive associated employee benefits. 

Westpac

• Removal of LMI wavier for the Sports and Entertainment Sector Policy from 14 February 2025.😭😭😭😭😭😭

Macquarie Hot Tip/ Reminder

Got self employed clients eager to rely solely on their FY24 Financials for servicing?

 They can do exactly that with Macquarie. Here’s how:

• Provide 2 QTR BAS statements for FY25 (Oct and Dec BAS)
• Ensure the annualised revenue from these BAS statements is a least within FY24 revenue
• We will need FY23 for sighting purposes only

Also,

We DO NOT include business liabilities in servicing (for sole traders, partnerships, company, trusts)

You can still add back depreciation, directors wages, and non recurring expenses

 This dramatically boosts your clients servicing capacity. Be sure to mention in your commentary that you’re seeking to rely on FY24 in isolation

 For self employed borrowers who are: accountants, actuaries, lawyer, engineer, vets, architects, pharmacists, podiatrist, optometrist, medicos – we can do a true 1yr Self Employed Financials (no need for BAS) up to 80% LVR

NAB Disaster Relief

NAB is providing $1,000 grants and additional financial relief to eligible customers severely impacted by the:

• Bass Coast bushfires
• Little Desert and Grampians bushfires
• Northern Queensland Floods

Further support available to NAB customers directly impacted, include:

• Loan deferral or reduced repayment arrangements for home, personal and some business loans.
• Hardship support for customers struggling to make minimum monthly payments on personal loans, home loans or credit cards.
• Deferring upcoming credit card payments.
• Waiving and/or refunding fees and charges, including merchant terminal fees and early access fees to term deposits.

Impacted customers are encouraged to visit our Natural Disaster Relief and Support page. If a customer is unable to access the internet, phone assistance is available by calling:

• Individuals: 1300 308 132 Mon-Fri, 8:00am to 7:00pm AEDT
• Businesses: 1300 769 650 Mon – Fri, 8:00am to 5:00pm AEDT.

All enquiries will be assessed on a case-by-case basis by the NAB Assist team to determine eligibility.

Last Week’s Learnings:

• Opportunity in Commercial Finance Broking…. Brokers currently have 29% of the market share vs’ nudging 80% of the market for Residential Lending….
• SMSF lending opportunity especially in refinancing.
• Asset Lending – You’ve got the client – you’ve got the  relationship – what is stopping you from adding asset or commercial or even business lending to your business. Is it skills, confidence, knowledge, time.
• There is a solution for all of these things – you just need to commit and put a plan in place.

Education

Bank of Melbourne's Exclusive Event with CoreLogic's Head of Research – Eliza Owen

Join us for a live webinar on Wednesday 12^th of February 2025 at 10:00 am - 11:00am (AEST)

Eliza Owen is Head of Research Australia at CoreLogic. She will cover off the dominating narrative of inflation, interest rates, and how this is impacting the Australian housing market. Housing finance trends will also be covered off, and Eliza will provide an update on key patterns in price changes, sales, listings and where the market could go from here.

JOIN NOW

EVENTS

Webinars Are Back: Starting February 18th. Join via THIS LINK

  IWD Events. Last Tickets remaining!

BROKER TEMPLATES

Introducing the Lunch and Learn Downloadable Pack with you. What started as a simple template pack turned into something much bigger—over 100 templates/ designs for you to choose  from, ready to rebrand your own.  This template pack focuses on helping your clients invest in property and  includes  a number of  LMI waiver programs, to deliver into the workplace and educate your target market.  

The best part? It’s super affordable at just $97 + GST. You can download it instantly, rebrand it, and start using it straight away. Everything is done for you!

Running events like this was something I did when I was broking with Property Before Prada. It helped me:

• Build real connections with other businesses.
• Be seen as the expert mortgage broker in my community.
• Meet potential clients by speaking to groups instead of one-on-one.

Focusing on a specific niche or industry made a huge difference for me, and I’ve built that same strategy into this pack. It’s a great way to grow your reputation and generate leads, and it’s something you can easily add to your plan for 2025.

I know this works and I know this will help elevate your 2025 business year and help you achieve your goals!

Download HERE

As always, Members, I’m here to help you. If you’re stuck on a scenario or need a sanity check, drop me an email anytime (exclusively for members only).

Have an amazing week ahead!

Kath👋