Rental income is a key contributor to total income in many Connective Essentials applications. We want to ensure our credit approach is in line with changing market conditions while continuing to lend responsibly. That’s why from Saturday 12 November 2022, we reduced the shading applied to rental income from 20% to 10% for new and existing rental properties. This change will support customers looking to refinance to get a better interest rate, or increase their lending capacity to achieve their investment goals.
Note: Expenses related to rental properties must continue to be captured as part of the living expenses conversation.
What you need to do
You don’t need to do anything differently. All systems and tools, including Connective Essentials serviceability calculators, have been updated on 12 November 2022.
Please keep this updated policy front of mind when having discussions with your customers about how Connective Essentials may be a great option to suit their needs. If you have any questions, or need support with an application, don’t hesitate to contact your Connective Essentials BDM to help you work through it.
Further information
If you would like more on information on how to best assist your clients, please contact your Connective Essentials Business Development Manager.
