Weekly Kaths Credit Crunch 4th November

UBANK - Credit Policy Changes

From Wednesday 30th October 2024 we will be making some changes to ubank credit policy. If Smart Statements is unavailable or not an accurate representation of income, we can manually verify income with the updated requirements below:

• Newly commenced Full time/Part Time PAYG – Base Salary income: Updated to add an employment letter or contract from employer when the customer has recently commenced employment as an acceptable income verification document.
• Director’s wages treated as PAYG – When verifying income via two years personal tax returns and NOA, latest tax return to be no older than 21 months old; and lower of the two years average income or the most recent financial year will be used in the serviceability assessment.
• Verification of Other Regular Employment income: Added ATO Income statement with minimum 6 months of income as an acceptable verification document.
• Verification of Bonus income: Updated to note that the latest bonus should be no older than 12 months.
• Verification of PAYG Casual/Contractor income: Added ATO Income statement with minimum 6 months of income as an acceptable verification document.
• Existing Rental income (excluding holiday rental and privately rented properties): Removed ATO Tax return as an acceptable rental income verification document.
• Existing Rental income (excluding holiday rental and privately rented properties): Updated to accept most recent rental statement or 2 account credits from a managing agent showing at least 2 weeks of payments.
• Child Support: Updated to add Child support assessment notice as an acceptable income verification document.

Suncorp

• Rental Income - SuncorpBank rental income included in the Capacity To Repay (CTR) Calculator is 75% of gross income. 
• Negative/positive gearing is automatically calculated within the CTR Calculator. 

Cash out policy

• Suncorp Bank’s Cash Out or Equity Release policy allows unlimited cash out for residential lending with an LVR of 80% or less. 
• For lending with an LVR of 90% or less, cash out is limited to a maximum of $100,000. 

Go Flexi powered by Pepper Money

Loan size and vacant land changes 

• Clients can now borrow up to $5 million for home loans and up to $2 million for construction loans. For specific changes to LVRs, locations, and loan limits, see the rate card on your aggregator CRM from 4 November 2024.
• We’ll now accept vacant land up to 5 acres for Prime, Near Prime Clear and Near Prime home loan options.

Large loan sizes  

• Our serviceability requirement for large loans has been reduced from 1.25 x NSR to 1 x NSR. This will apply to loan amounts greater than $1.5 million for Near Prime and $1.75 million for Prime home loan options. 

Debt consolidation  

• You can now consolidate an unlimited number of debts on our Prime home loan option. This doesn’t include tax or business debts.

Expanded commercial securities 

We’ve opened up the types of residential securities we’ll accept under our commercial product to include:

• Studio apartments (incl. <40m2)
• Dual key homes
• Serviced apartments
• Lifestyle properties with no acreage cap up to $2.5

Beyond Bank

• Important Updates from Beyond Bank: Home Guarantee Scheme. Refer to The Brokers’ Bible Library or Beyond Bank portal.

AMP

What is the Business Finance loan?

A Business Finance Loan that enables brokers and advisers to acquire or merge businesses with their current and/or future ongoing reoccurring revenue as security, so they can grow their business. 

AMP Bank can provide you with finance for the following purposes: 

• Acquiring or merging businesses. 
• Employees may borrow to buy into the business for succession planning or equity purchases. 
• Business enhancements (i.e. Office fit out or refurbishment but excluding motor vehicles). 
• Purchasing of business premises. 
• Refinancing of loans from other lenders. 
• When purchasing a business you may be required to pay GST. We are able to finance GST on a short-term basis, for up to 6 months until the business recoup the monies.
• A line of credit may be considered for working capital management.

Last Week:

Noosa BDM Brunch 🌴– I cancelled the formal presentation due to my uncertainty of being able to present with my dad being so ill but I still had a lovely short lunch with Beyond Bank and Granite! (FYI - dad is  now home and recovering!!!)

FBAA Conference 2024- What a cracker. My Favorite Takeaways and Insights:

Andrew Inwood from Coredata Group:

Economic predictions for brokers:

• We may see movement in rates in the middle of next year which means a HUGE opportunity for brokers.
• 55% of mortgage holders are expected to refinance within the next 2 years with half of these borrowers wanting to engage with a broker.
• Not enough brokers to service the surge of business expected in the coming years.

Broker business insights:

• 16% of broker leads are coming from social media.
• Opportunities for brokers to promote and target lending within LMI – looking at grants, waivers and assisting customers who require LMI in finding the best deal.
• A recent survey reported the top 3 attributes customers are looking for in a broker are:

1. Authentic
2. Stable and reputable
3.  Convenient  

Broker business fundamentals:

• Growth plan documented
• Productivity using technology and AI
• Clear vision
• Outsourcing

Jelena Dokic

• If you don’t believe you won’t
• Perfection does not exist – it’s unattainable.
• There is great power in venerability. Venerability is actually a strength. To be venerable takes guts and strength and those that are brave enough to be venerable should be celebrated!
• Use your story to make a difference in someone else’s life.
• What you put in, is what you get out.
• Get comfortable with making mistakes!

Justine Troy, founder of 42 Below Vodka talking about building your personal and business brand:

• Belief
• Product Excellence
• PR – tell your unique story
• Personality and idea’s

I met with some new lenders and service providers which we will be adding to our library this month including:

• Money Talk
• Lend Plus
• Capify
• Docuscan
• Super records
• ANZ business Lending
• Bula Outsourcing

Our First Birthday!

🌟 Celebrating One Year of The Brokers' Bible! 🎉 🌟

One year ago, I launched The Brokers’ Bible—leaving the security of my mortgage broking business to create a fintech platform designed specifically for brokers. My mission was simple: to simplify the maze of lending policies and make it faster, easier, and more accurate for brokers to deliver exceptional results to clients.

As a broker, I’ve felt the frustration of juggling client demands, keeping up with the constantly changing policies, and sifting through endless paperwork—all while trying to provide the best advice. I knew there had to be a better way. I built The Brokers' Bible for every broker who’s been overwhelmed, for those who want to thrive in this industry without sacrificing their sanity or their standards.

This journey has been one of the toughest of my career. I've risked everything, and there were so many moments where I questioned myself. But thanks to the incredible support from our lenders and every member of The Brokers' Bible community, this business is not just surviving—it’s thriving. This year alone, The Brokers’ Bible has been honoured as a finalist for 14 industry awards. I am humbled, proud, and more motivated than ever to keep building and refining this platform.

To all of you who have supported, encouraged, and believed in my mission—thank you. Here’s to many more years of empowering brokers to work smarter, not harder.

#TheBrokersBible #Fintech #MortgageBroking #ThankYou #birthday #ProudFounder #Innovation #womenintech #womeninfinance

Coming up this week – The Australian AI Awards on Wednesday night in Sydney! Wish me luck!!!

Coming up this month- new template for EVERY BROKER!!

See you next week finance friends! 🫸