Vow Voice 10th December 2020

Until 31 January 2021, brokers can offer their clients discounted interest rates and fees across select Prime, Near Prime and Specialist home loan products, for their full doc and alt doc customers.

Discounted fees

• No Mortgage Risk Fee (MRF) for Near Prime Alt Doc loans up to 70% LVR1
• No Lender Protection Fee (LPF) for Prime Full Doc loans between 80-85% LVR1

Discounted rates2

• Prime rates starting from 2.35% p.a.3 (2.38% p.a. comparison rate4)
• Near Prime rates starting from 3.49% p.a.3 (3.68% p.a. comparison rate4)
• Specialist rates starting from 4.59% p.a.3 (4.77% p.a. comparison rate4)

Please refer to the rate card for our full range of interest rates and fees.

Rate card can be found by vising the broker centre- at Resi.com.au

Product and Credit Policy Changes

The following recent changes apply to Resi Renew/Restart home loans

Acceptable Income

• 100% of Interest and Dividend income from held cash deposits and share portfolios considered. 2 years consistency is required. Capital gains on sale of assets is not acceptable.

Full Doc solutions

• Maximum LVR of 95% for Specialist Full Doc
• Cash-out up to 85% LVR for Specialist Full Doc
• Fee Capitalisation up to 95% LVR for Specialist Full Doc

Alt Doc solutions

• 1 month's Business Bank Statements no longer required on all Alt Doc home loans
• Maximum LVR of 85% for Specialist Alt Doc
• Cash-out up to 80% LVR for Specialist Alt Doc
• Fee Capitalisation up to 85% LVR for Specialist Alt Doc
• 6-month ABN and GST considered for Specialist Alt Doc

Please refer to the product guide for more information on our product and credit policy.

New serviceability calculator

Recent updates have been made to our serviceability calculator. The update includes

• Financial Year 2021 personal tax rates
• A new feature where two Resi Renew/Restart loan amounts can be entered for serviceability, eliminating the need to have separate sheets where there are two applications.

An updated rate card, product guide and calculator can be located at the broker centre by visiting resi.com.au

If you have any questions, please do not hesitate to contact the team.

*WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate

Please see the below update from BOQ regarding customers' probation period.

Probation is allowable with BOQ for your customers when:

• Their prior employment in the same occupation is greater than 2 years and no more than 4 months break in employment OR
• Probation is with the same company that the applicant has been continuously engaged with for a minimum of 12months (Eg. Changing from casual to full-time employee)

For more ways in which BOQ can help provide solutions, check out their Broker Solution Sheet.

For any questions, please reach out to your BDM.

To sharpen our offering further, I am glad to inform you that we've introduced some great changes to both Alt Doc and Near Prime range of products. These are:

• Alt Doc: Our previous Alt Doc maximum loan $750,000 was proving to be challenging for higher property values. So, we've revised this figure and can now offer Alt Doc loans of up to $1m for Sydney and Melbourne metro locations for a maximum LVR of 70% (70% LVR applicable for all Alt Doc loans above $750,000).
• Near Prime: Previously we were restricted to only assisting borrowers with credit blemishes registered for at least 2 years and only for amounts up to $1,000. We are now open to considering defaults within the last 2 years for amounts up to $1,000 as well as larger defaults for those registered for over 2 years. However, our credit team will need to know the circumstances of the default(s) and be satisfied that the borrower is unlikely to default any further.

Thank you for your ongoing support! For any questions, please reach out to your BDM.

Home prices in capital cities are expected surge in 2021, with aggressive government stimulus, interest rate cuts, and the upcoming changes to responsible lending laws playing major roles in the recovery, according to a new report by SQM Research.

The research firm's latest Housing Boom and Bust Report outlined a range of scenarios for the property market next year, predicting dwelling prices to rise between 5% and 9%, with Perth the stand-out performer, followed by Sydney and Adelaide.

According to the study, the best-case scenario would see the cash rate remain at 0.1%, the Reserve Bank expand its quantitative easing (QE) program, containment of a third wave COVID-19 infections, a progressive vaccine roll-out, and an extension of JobKeeper until Q3 of 2021.

The research also found that an extension of JobKeeper was crucial in sustaining the momentum of the housing recovery because if it is scaled back too prematurely, the market in Sydney and Melbourne could stall.

The report forecasted Perth home prices to jump between 8% and 12%, while Sydney prices were predicted to rise from 7% to 11%. Adelaide prices are also expected to experience strong growth of between 6% and 10%.

Melbourne dwelling prices were predicted to increase at a more subdued rate of 2% to 6%, partly due to the extended lockdowns in Victoria, which had an adverse impact on many small businesses and employment recovery.

Source: Your Mortgage