This month, we’ve introduced even more policy improvements that will help you service your non-standard customers better. That is in addition to the 20+ policy changes we announced in September.
Plus, shining a spotlight on SMSFs, we explore the rewards of refinancing.
More policy updates to help grow your business
We’ll never stop improving our policies to help your customers achieve their goals and to help you grow your business. Our key October improvements include
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1. No minimum requirement for liquidity in an SMSF Reduced from 5% liquidity requirement |
2. No building storey limit in inner city areas Previously limited to 10 storeys |
3. Clearing of Part IX & X Debt Agreements on Specialist loans accepted |
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4. Maximum loan term increased to 40 years Servicing will be calculated over 30 years and exist strategy required for applicants over 45 years |
5. 2 recent payslips with 1 dated within 4 weeks of the application date now required for PAYG income verification Changed from requiring the 2 ‘most recent’ payslips |
6. For payslips with a valid ABN, there’s no requirement to provide bank statements showing salary credits |
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7. Self-Employed Salaried Income Assessment We can now assess Full-doc self-employed salaried income for borrowers who are shareholders/directors paying themselves a salary |
8. Valuation Flexibility for Completed Off the Plan Purchases For recently completed off-the-plan purchases, we will now rely on the valuation figure if the contract of sale is over 12 months old |
How might these updates help your customers? Read a recap of our policy updates or call 13 BLUE to speak to one of our senior underwriters.
For brokers, there’s a real opportunity to facilitate the refinancing of SMSF loans and help customers make new purchases. However, the complexities of SMSF lending can be challenging. We’re here to help. To support our broker network, we’ve invested in SMSF specialists and education resources.
For SMSF loans, we’re pleased to reduce the liquidity requirement to 0%. Refinancing to a lower rate may save your customer interest - up to $8,000 per annum. Refinancing is also likely to place SMSF properties in a positively geared position, which is indeed a positive in the 15% concessional tax environment for SMSF investments.
Recently, we talked to our very own Richard Chesworth about what’s happening in the SMSF space. Read his insights here.
For conditional approval before Christmas, please submit your applications before Monday 18 December 2022.
Our Underwriting and Settlements teams will be working through the Christmas/New Year period, except public holidays. For confirmation of any approvals or settlements, please speak to your BDM.
Connective Elevate Disclaimer
This publication is intended for Connective Home Loans Elevate accredited introducers and referrers only and is not to be distributed to anyone else, including consumers, under any circumstance. The information in this email is given in good faith, believed to be accurate at the time of posting and is subject to change at any time. Information accurate as at 5 September 2023.
Your Connective Elevate Home Loan is administered by Bluestone Servicing Pty Ltd (Bluestone) ACN 122 698 328 (Australian Credit Licence No. 390183) on behalf of the Credit Provider, Permanent Custodians Limited ACN 001 426 384. Distributed by Connective Credit Services Pty Ltd ACN 143 651 496 (Australian Credit Licence No. 389328) trading as Connective Home Loans.
