Residential Policy Enhancements

Firstly, we have decreased the serviceability buffer on residential and residential SMSF lending to 2%, making it easier for borrowers to meet the lending criteria and secure the funding they require.

Additionally, we are excited to announce the launch of our new 'Easy Refinance' policy for residential and residential SMSF loans. This offering allows your clients to refinance their existing loans on a dollar-for-dollar basis, with a 1% buffer to help manage their financial commitments.

Easy Refinance

For a refinance where the equity release does not exceed $20,000 the servicing buffer can be reduced from 2% to 1%. The following criteria will apply:

• Like for like and dollar to dollar refinance for loans over 12 months old.
• Can be applied to Full Doc and Mid Doc residential products, and Residential SMSF.
• Equity release (max $20,000) for cost capitalisation to assist with any fees or charges to facilitate the refinance (i.e. break costs, discharge fees etc).
• The repayment type should be consistent with the outgoing loan (IO to IO or P&I to P&I).
• Standard servicing buffers will remain in place for all other liabilities.
• The borrowers credit history should be clear of any adverse credit events.
• Debt consolidation is not allowed.
• The new repayment amount must be lower than the current payment amount, however the term can be increased.

Christmas Cut-off Dates