Weekly Kaths Credit Crunch 7th October

ANZ

Effective Monday 14 October 2024, policy changes will be made relating to Business Income (Non-PAYG).

Business Income (Non PAYG):

• When the borrowers are partners in a large law/accounting firm or have a combined minority shareholding (less than 25%) in the company, they are still considered to be self-employed applicants for the purposes of the application.
• The documentation requirements for these borrowers continue to be:
• Customers will need to provide their individual tax return and ATO Notice of Assessment.
• The business tax return, profit & loss statement and balance sheet are not required.
• For Company business structures (Including Company as Trustee for Trust) the Borrowers on the application can cover a combination of the roles, director and shareholder. For the use of business addbacks, the applicants are required to meet the minimum combined shareholding requirement of 50%.

Firstmac Servicing Spotlight : Clients tight on servicing?

• 2% assessment buffer on purchases and refinance
• 100% overtime, bonus & commission used regardless of industry
• No DTI
  

ING Policy Spotlight:

Property Share Loans:

Here’s how it works:
Imagine 2 siblings buying a $1million property with an $800,000 loan (maximum 80% LVR). With ING, each sibling can, for example, take out a loan of $400,000 (i.e. 50% share of the loan amount) and guarantee the other’s $400,000 loan.

Applicant 1 (Sibling 1)
Loan amount: $400,000.
Guarantor: Sibling 2

Applicant 2 (Sibling 2)
Loan amount: $400,000.
Guarantor: Sibling 1

This set up not only simplifies the process, but also offers flexibility and peace of mind of having separate loan accounts for each borrower. 
Why Choose ING’s property share? 

• Flexibility / freedom: Tailor the loan to suit each borrower’s needs. 
• Versatility: Fits any joint ownership scenario. 
• Investor friendly: pool resources, keep finances separate. 

ING's Environmental Rating Cashback - Extended! 
The ING 7-star rating cashback has been extended to the end of the year, giving your customers more chances to save on energy-efficient properties!

What’s in it for your customers? 

• Up to $2,500 for refinance applications. 
• $1,500 for purchase applications.

Does your customer qualify? Does your customer have any of these certifications:

• A Residential Efficiency Scorecard = 7 stars or greater
• An accredited ACT energy rating = 7 stars or greater
• The Nationwide House Energy Rating Scheme (NatHERS) = 7 stars or greater
• Green Building Council of Australia (GBCA) Green Star Home

ING – exit Strategy -Requirements - ApplyOnline
Customers who reach their planned retirement age or 67 years old during the loan term must provide a detailed retirement exit strategy plan. We have added a mandatory text box to the relevant field in the Compliance Tab of ApplyOnline where brokers can input the required information. Where this information is missing or incomplete, the progression of the loan application will be delayed until further clarification is provided. 

ME Bank Reminder:

As we find ourselves three months into the new financial year, ME is now accepting one payslip verification again.

• ME only requires one recent payslip showing three months' YTD income for most full-time and part-time PAYG applicants using their base income.
• Payslips must be dated within 28 days of the application date (42 days if paid monthly), and applicants must have been employed for six months, or three months if they are an Essential Service Worker.

📢Updates and Events:

📢October 18^th – Sydney Lender Lunch – Only 3 tickets remaining

📢Sydney BDM's!
This Lunch and Learn is all about YOU! We're shaking things up and showering some love on our banking buddies, and you're the VIP for an afternoon packed with networking, knowledge, and a sprinkle of upskilling – The Brokers' Bible style! 📚💼
🗓 Date: October 18th, 12pm (sharp) - 2:30pm
📍 Where? In the oh-so-chic Private Dining Room at the Moxy Hotel
🔑 What's in it for you? Besides mingling with fabulous folks and soaking up juicy insights, we’re serving up the ultimate tips and tricks to keep you soaring high in your game! This is your golden opportunity to connect, learn, and grow with the industry's crème de la crème!
AND forget about boring lunches – we’re cranking up the fun with some surprises sprinkled in, all in true Broker Bible style! Link below for only a few remaining tickets:
https://www.thebrokersbible.com.au/offers/38NLvTni/checkout

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

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

📢Commercial Finance Insights Webinar – October 31st

Register now to join the live webinar that will delve into the Equifax Quarterly Commercial Insights Report to get a greater understanding of the market appetite vs need for credit, including:

• A business lending ‘state of play,’ including commercial finance sector changes, insolvencies, state and industry differences
• The ‘tightrope’ of margin vs market share:
• The impact of the US election and how it will affect global markets
• How money market tremors will affect the cost of funding, borrower and lender appetite
• RBA rate decisions and the effect on borrower sentiment and spending
• What this means for businesses and brokers, and where the opportunities are

Featuring commentary from a leading economist, private lender, and commercial finance specialist/ broker: