Weekly Kaths Credit Crunch 30th September

Bank of Melbourne and The Westpac Group:

Policy change -  From two to one full Financial Year time in employment for Self-employed Medico customers.
Bank of Melbourne and Westpac are updating their Policy to reduce the time in employment required for Self-employed Medico customers who meet Medico Sector eligibility, from two full financial years to one full financial year to align to existing documentation requirements.

Bankwest

New Guarantor Interview Checklist

• Effective immediately, all guarantor applications will need a completed Guarantor Interview Checklist. The checklist can be found via the Bankwest Broker Portal under forms. You’ll need to sign, attest and complete all actions in the checklist and upload to DocBox along with your supporting documents. You can refer to the updated Guarantor Information Guide, located under policies on the Broker Portal, to assist in completing the checklist.

Strata fee expenses

• Effective Friday, 4 October 2024 we’re removing strata and body corporate fees from non-basic expenses. These should now be captured under the ‘Primary residence’ category included in HEM.

Orde Financial Residential Alt Doc Construction Highlights:

• Up to 80% LVR (cat 1 and 2) with a reduced LVR for other postcodes
• Must start construction within 3 months
• Must complete construction within 12 months
• Up to 2 dwellings on one title
• Alt Doc product is available with a Self-Certified Income & Repayment Declaration, plus one of the following options:

1. Accountant’s Declaration: ORDE’s Accountant’s Declaration was developed in line with recommendations from the CA, CPA & IPA. It asks accountants to confirm only factual information about the customer’s income, not their capacity to repay the loan.
2. Recent six (6) months Business Activity Statements
3. Recent six (6) months Trading Statements

ME BANK CASHBACK OFFER

Announce a new purchase cashback offer of $2,000 for high LVR segment. Starting Monday 30 September 2024, eligible purchase applications will receive $2,000 cashback.

Other important things to know include:

• For purchasers only of $400,000+ with an LVR >80% who require LMI.
• Applies to owner-occupier and investor purchases over $400,000 (P&I and IO home loans).
• Only available for existing home purchases (vacant land and construction loans are excluded).
• Applications accepted from Monday, 30 September 2024 onwards and must settle within 120 days of application date.
• Cashback paid within 60 days of settlement.
• The first borrower needs a ME Everyday Transaction Account (ETA) for cashback, or it will go to the home loan

Important Home Guarantee Scheme updates

There are two key updates you need to be aware of when submitting applications for the Home Guarantee Scheme.

1. FY24 Notice of Assessments (NOAs) are now required Effective immediately, the Housing Australia Portal no longer accepts estimates of an applicant’s FY24 Notice of Assessment for input into the Home Guarantee. Customers are now required to provide their FY24 NOA when submitting an application for a Scheme place.
2. FY25 Home Buyer Declaration required from 1 October 2024 From 1 October 2024, the FY24 Home Buyer Declaration will not be accepted. The FY25 Home Buyer Declaration must be used for all Scheme applications from 1 October 2024.

Pipeline applications: For FY24 Scheme applications which are in progress, the FY24 Home Buyer Declaration can still be accepted.

Other Updates

📢 Coffee and Credit next week – talking all things Fast Refi. 1 hour Deep Dive – register here for FREE: 

https://www.thebrokersbible.com.au/offers/bcpFGzha/checkout

🌟 Feeling Beyond Humbled and Grateful! 🌟
I am completely overwhelmed and deeply honoured to share that I’ve been named a finalist in three categories for the Women in Finance Awards:
Innovator of the Year 🏆
Entrepreneur of the Year 💡
Fintech Leader of the Year 📊
This recognition reflects the journey I’ve been on in building The Brokers' Bible —a platform born from my passion and vision to make the complexities of mortgage lending easier to navigate. Being acknowledged in these categories is truly a dream come true and validates the countless hours of hard work and dedication that have gone into bringing this idea to life.

I’m so incredibly grateful for the support I’ve received from every single member of this community—you’ve been instrumental in this achievement.