Rental income is a key contributor to total income in many applications. Resi wants to ensure their credit approach is in line with changing market conditions while continuing to lend responsibly.
That's why, effective immediately, Resi has 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 Advantedge 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 Resi Select may be a great option to suit their needs.
To access the rate card, click here.
For more information, please see Resi's website, alternatively please contact broker support or your BDM.