Locked Down or Isolated? Resi Has You Covered

Recently we provided an update that Zip ID has been made available for Resi's Essential and Flexi Options product ranges.

This service is being used to great effect by our brokers streamlining the application process for both.

However, with the recent developments in greater Melbourne remote VOI options have taken on greater significance, so here is what is available for our two main product ranges.

Essential Options

In addition to Zip ID, Australia Post and the normal Face to Face forms, we have made available, there is a special Essential Options AML-CTF and VOI (VIDEO) Form (click here) we have made available on Vownet which allows you to complete the VOI requirements via video conferencing.

These forms are held within the document library of Vownet and within the broker section of the new Resi website resi.com.au

Flexi Options

As an interim measure, we can accept VOI completion by video facilities, if face to face is not available.

To do this, you can follow the steps below:

  • The applicant must send a copy of their required identification documents to you ahead of time.
  • Once received, the applicant must display the original ID via video to ensure you are satisfied that the copies provided match the originals.
  • You are then required to:
  • Certify the copies in line with our standard requirements,
  • Tick the "Face to Face with broker" option under the VOI declaration as the method (whilst we work towards updating our form),
  • The detail in the background notes the use of video conferencing to conduct the VOI and the technology used.

Valuations

It has now been confirmed that the Financial and Insurance Services Sector can remain open for on-site work with a COVID Safe Plan even under stage 4 lockdown measures in Greater Melbourne.

We have confirmation that Valuation services are deemed to support the Financial Services Sector and fall under the scope of critical banking services to support the provision of services, credit and payment facilities.

Special measures are available if properties are unavailable for physical inspections - an example being occupants needing to self-isolate (when a full valuation is required)

The Resi team is ready to lend a hand for our entire network including our Victorian colleagues who are locked down doing their bit to keep everyone safe.

Westpac's Changes to Their Credit Policy

Self-employed Credit Policy changes

Effective Sunday 16 August 2020, adjustments have been made to Westpac's self-employed section of Credit Policy.

These changes include:

  • Financial statements confirming profitability. Where any business entities related to the applicant aren't used in serviceability you can now accept just the latest years' trust/company financial statements or tax returns to confirm the entity is trading profitably.
  • Depreciation add-backs. We are now allowing a standard 100% depreciation add-back for any business-critical, income-producing assets.
  • Company profit. Undistributed company profit is now acceptable to be used where the borrower is a director and a shareholder with a holding of 50% or more and there is a serviceability shortfall.
  • Collection and review of three months of Business transaction statements removed.

Also, effective Tuesday 18 August 2020, amendments are being made to Westpac's ApplyOnline (AOL) that mandate a list of supporting documents that need to uploading to the ApplyOnline platform at the time of submitting an application.

  • A set of mandatory documents will need to be uploaded on ApplyOnline at the time of submitting the application.
  • List of documents that are mandatory Home Loan Application form, Guarantor Application form, Income Documents (payslips for PAYG application and Tax Returns for Self Employed/Medico application), Contract of Sale.
  • For all non-mandatory supporting documents required from Tuesday 18 August 2020, you can either use supporting documents tab on AOL to upload the documents or email documents as you do currently.

Exclusion: When any of the security is AIP (Pre-Approval is ticked) or application is Rework supporting documents are not mandated in these scenarios. Also, the Contract of sale is not required when the application is refinancing.

To read full details on Westpac's policy changes, please click here.

RateSetter's Formal Brand Changes

Effective from 10th August, RateSetter Australia has a new name: Plenti. The name change is an important component of the company's growth as a business.

Here's some handy information to help you understand what's changing.

What's changing?

The following items have been updated to reflect our name change to Plenti:

Please note that the ABN and phone contact numbers remain unchanged.

Why the rebranding?

Over the last five years, RateSetter has launched new loan products like their award-winning car and green loans, nurtured strong relationships with new partners including loan brokers and renewable energy installers and brought a diverse range of new investors on board to support their growth.

Plenti reflects the company's future as a champion in consumer finance. This is an exciting opportunity to introduce them to partners and customers as a proud Australian business which has won the trust of over 80,000 customers.

ANZ Introduces Policy Changes

ANZ has extended the maximum loan term on an ANZ Business Loan of less than $1 million from 15 years to up to 30 years when secured by suitable commercial property.

An ANZ Business Loan of less than $1 million with a loan term of up to 30 years when secured by suitable commercial property, could provide your customers with more choices to help them run or grow their business.

While the total cost of an extended-term loan of up to 30 years will be higher than a shorter-term loan, the potential benefits may help them to keep their business moving.

Effective 10 August 2020, customers may also be eligible for an interest-only repayment term of up to 10 years on an ANZ Business Loan of less than $1 million with a term of 20 years or more, when secured by suitable commercial property.

*Some important things to keep in mind:

The extended loan term of up to 30 years, and the extended interest-only repayment term of up to 10 years on a loan term of 20 years or more, only applies to ANZ Business Loans of less than $1 million that are secured by suitable commercial property (excludes Business Mortgage Loan, Agri Finance Loan and Asset Finance loans). Please contact me or your ANZ Business Banker to discuss whether these options are available for your customer.

Eligibility and credit criteria will apply, including:

  • Total credit facilities with ANZ, including new loan funds as part of the application and any credit facilities held by related entities, must be less than $1 million; and
  • Provision of security acceptable to ANZ, meeting ANZ's security requirements including minimum security coverage and suitable security location.

The total cost of an extended-term loan of up to 30 years will be higher than a shorter-term loan, and will usually result in:

  • A lower amount of principal being repaid in each regular repayment; and
  • The total amount of interest payable being higher than a shorter-term loan as a result of the longer loan term during which interest is paid.

Reference material:

  • Please refer to the attached flyer for more information and eligibility criteria
  • The attached flyer can be provided to customers who want the information to read or take away.

More Solutions with Liberty

Liberty has expanded its range of business loans with Mint, their secured business loan and Access, as well as their line of credit.

These new solutions address market gaps that allow brokers to help businesses with even more options, especially during such difficult times.

Features of these new products include:

Mint

  • Numerous acceptable securities
  • Variable rates from 4.45% p.a.
  • No break costs
  • Unrestricted loan purposes

Access

  • Flexible line of credit
  • Variable rates from 5.95% p.a.
  • No break costs
  • Interest-only repayments

Along with the new offerings, don't forget about Liberty Lift solution or their SME Guaranteed product!

A maximum exposure up to $5m across their business product suite is offered and the application process remains quick, easy, and backed by Liberty's famous service.

The updated Business Loans Introducer Guide outlining Business solutions, as well as an updated Commercial Schedule to Liberty's Introducer Agreement is attached HERE.

Click HERE for the BCA Finance Guide.