It’s a new financial year and thanks to our self-employed income verification policy, quick turnaround times and outstanding service, Connective Essentials is a great option to help your self-employed customers achieve their goals sooner.
Connective Essentials allows self-employed customers to use accountant prepared financial statements to apply for a home loan. So, even if their FY24 tax return is yet to be completed, they can apply for their loan and get into their home sooner.
Trading entities simply need to provide:
Also, the most recent year’s financial information can be used in isolation to assess servicing where there is a justifiable change within the business that reflects a sustainable increase in future performance. In this instance:
One of the many benefits of having a flexible home loan product through Connective Essentials, is the ability to have principal and interest home loan repayments calculated based on the balance of the loan upon request, rather than the limit.
As an example, if a customer has a home loan and has the full balance sitting in an offset account, while the interest being charged to the loan is nil, the offset account is still debited the full principal and interest monthly repayment.
Where we differ is that if a customer has a home loan and deposits the full balance into their redraw, giving them a zero balance, no interest is charged and we can base the repayment on the zero balance – resulting in no monthly repayment being required.
With an interest rate of 6.14% p.a (comparison rate 6.21% p.a)1 and 30-year loan term, that reduces a $2,437.45 monthly repayment to $0. If the customer then chooses to use their redraw, their repayments will only increase based on the new loan balance. For more information on comparison rates please refer to our Important Information below.
While our loan limit and the available redraw will still amortise over time, not having to make repayments based on the loan limit is quite useful to many of our borrowers.
If you’d like to know more about what Connective Essentials has to offer, please reach out to your CHL BDM.
All applications are subject to normal credit approval criteria. Full terms, conditions and schedule of fees are set out in the relevant loan contracts. Fees, charges and government taxes may be payable. Fees and charges may be varied or introduced in the future.
Important information
Interest rates, fees and charges are subject to change. Fees and charges apply to all Advantedge products. Refer to the Fees and Charges Booklet on your aggregator’s software for full details. Fees and charges are current and may be introduced or varied in accordance with loan terms.
1 Comparison rates are based on a secured loan of $150,000 over a term of 25 years
WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan.
