Many of you would already be aware, from discussions with your BDM that the medico policy via Macquarie has been discontinued. While lending above 80% is certainly still available for this market segment, the capital requirements as dictated by APRA means that these loans can no longer be offered without the low deposit fee (LMI equivalent). We would also like to take the opportunity to let you know of some of the scheduled contact that Macquarie will have with our clients around Interest Only expiry dates, which will differ between the platforms that they are on.
LINX (old platform)
- Formal letter 4 weeks before expiry direct to customer
- Phone call generally 2 weeks before expiry
They are also testing email notifications sent 180 days before expiry to offer lower P&I carded rates - this will be in pilot soon.
SAP (new platform)
- Email 6 months before expiry (should go into BAU in the next month)
- Email 1 month before expiry
- Email on day of expiry
They are also going to road test a phone call after the first P&I repayment post conversion to make sure the customer is comfortable with the increased repayment amount.
The motives for contact are to ensure our customers are prepared for the potential increase in repayment amount as the difference between IO and P&I can be quite significant. That's why the SAP and LINX 180-day communications emphasise helping a customer plan ahead and budget to account for repayment changes post conversion.
As a reminder, if during the course of any of this client communication, Macquarie becomes aware of a discharge risk, you will be contacted. Further, any interest rate reductions offered during the process do not impact on any of the trailing commissions paid to YBR and onto yourself.