Weekly Kath's Credit Crunch 3rd March 2025

CBA

🔹 Lots of income verification updates, with new guidance on income considered ‘unstable’, including: ⭐ Miners paid incentive/bonus payments each pay cycle
⭐ Regular allowances
⭐ Income based on work completed in lieu of a base wage (e.g., truck drivers paid per kilometre driven)
⭐ Expanded guidance for Fly-In Fly-Out (FIFO) workers
⭐ Foster care income now accepted as an income source

💥 Big news! I just called CBA Broker Support, and they confirmed: CBA now accepts apartments FROM 30m² internally WITH LMI! 🤯 Meaning your customer can use the Government Scheme to buy a 30m² apartment – WHHHHATTTT?! I know! How were we not told this?!

👉 CBA will also accept apartments under 30m² with a max LVR of 80%.
Things to know:
⭐ Always check the postcode – restrictions may apply
⭐ The property MUST have an internal bathroom
⭐ The property must have a kitchenette/stove or allowance for one to be connected
⭐ 30m² internal living space required (balcony & carpark excluded)
⭐ Must be standard security – no specialised securities (e.g., student accommodation, serviced apartments)

UBANK

🔹 Other Living Expenses and Other Commitments have been removed from HEM and will now be included as a HEM add-on.
🔹 Loan purpose pricing change – Ubank will now price loans based on the predominant loan purpose, without requiring loan products to be split.
⭐ Loan purpose still captured based on intended use
⭐ If the loan is split, pricing applies based on the predominant purpose of each split

Resimac

🔹 Serviceability buffer reduced to 1.00%! 🚀
To better support customers, Resimac is lowering the serviceability buffer across all home loan products. This aims to: ⭐ Make refinancing more accessible
⭐ Offer more financial flexibility
⭐ Help customers achieve their financial goals with less strain

📌 Eligibility for 1.00% serviceability buffer:
⭐ Refinance of an existing owner-occupied or investment home loan
⭐ Additional debt consolidation (non-home loan debts allowed)
⭐ Cash-out up to $50,000 permitted
⭐ LVR up to 80%
⭐ New repayment amount must be equal to or lower than current repayments
📌 Important: Ensure the ‘Simple Refinance’ option is selected in the serviceability calculator to apply the correct buffer.

VMG

🔹 Expanded their product range – now offering business funding! 💼

Paramount

🔹 Private First Mortgages now available up to 75% LVR! 🏦

🔥 Lots of lender updates this week! Stay informed, check the details, and reach out if you need clarification. Let’s keep crushing it! 💪

Last Week Recap

⭐ Bougie BDM Brunch – We hosted our very first BDM brunch in Melbourne with 50 BDMs, sharing industry highlights, showcasing inside The Brokers Bible, and networking together! 💼☕

⭐ Better Business Awards – I was humbled to be a finalist in 4 awards and beyond thrilled to win Wellness Advocate of the Year! 🏆✨ I’m so excited to use this platform to encourage brokers to provide financial wellness in their communities.

⭐ Women Supporting Women Event – The week wrapped up with an incredible IWD event attended by over 130 women, celebrating and empowering Women Supporting Women alongside Therese O’Neill. 💜👩‍💼

 EVENTS

This Week! ☕ Coffee & Credit with Kath - Talking all things Self-Employed - 📢  Join via THIS LINK

What a week! Let’s keep up the momentum! 🚀

Kath!