The roll out of valuation process improvements continues!
Desktop Valuations
Expansion of Desktop valuations to all security location categories, excluding location category 4.
Increases to maximum loan amount to $1.2M or property value to $1.5M.
AVMs
Expansion of AVMs to security location category for any property value.
The maximum LVR of 80% is still based on the Forecast Standard Deviation (FSD). A reminder to brokers and their support teams to check an AVM for FSD on the AVM report against the LVR of the deal.
Refer to 21.1.2.2 Automated Valuation Method (AVM) for further information.
Connective Select niches and points of difference
Connective Select offering is a premium, fully featured product suite that can be tailored to satisfy your clients borrowing needs. All products are competitively priced with low fees. A sound program knowledge is essential before recommending a funder and product to your valued clients, so we’ve complied a short list of Connective Select niches and points of difference to wet the appetite.
Please contact your dedicated CHL BDM for additional information or service to help make your Connective Select experience a good one:
1-day to credit assessor once passed quality control.
1-year self-employed financials used for servicing (must be trading for minimum of 2 years).
100% offset loan is available on ALL products and for ALL applicant types.
No annual package fees. Loans without offset (Term Loan) $0 per month and Loans with Offset, only $10 per month.
Fully assessed pre-approvals.
No auto decline due to low credit score – all deals are manually assessed.
20% of loan can be used for business purpose (excluding working capital or tax liability).
Interest expense can be included as an income addback in the event the debt is being refinanced to Connective Select.
Instant asset write off (if adding back) – need to include the associated debt in servicing.
Business debts in company name (that are documented in the P&L) don’t need to be included in servicing – unless depreciation included as an income addback. Note - only need to include the debt for the asset being depreciated (ie. not all debts).
Business debts in company name that don’t appear in the P&L (eg liability established in the new financial year), will need to be included in servicing (full repayment) to give an accurate picture.
FHOG can be made available at settlement of land (conditions apply).
Cash out <$100k – commentary only needed (Max LVR 80%).
100%shift allowances can be used for essential workers (eg ambulance, fire, police, nurses). Note - Payments for reimbursement of expenses are not acceptable e.g. travel, meal.
Exit strategy only needed if applicant aged >50 years old and loan won’t be fully amortised by age 70.
