Westpac Accreditation Update

Westpac Group is committed to ensuring the quality and accuracy of the information they hold for all accredited third-party service providers.

Hence, they are under strict obligations to adhere to both their regulatory requirements and their ongoing commitment to managing financial crime risks.

Last year Westpac introduced new accreditation application forms to collect the mandatory information required by Westpacs Financial Crime Standard. They are now required to update various details and collect some additional information about their existing third-party service providers.

This process will require Westpac to contact all current accredited referrers and brokers working under your agreement with the bank. It will take a significant amount of time to contact and update the details for all accredited third-party service providers, so they will begin by contacting referrers in the first instance and move onto brokers in the coming months. This will be ongoing until November 2022.

In the near future, Westpac will start emailing you, asking you to complete a new information form, similar to the existing accreditation application forms. If you have any questions about this process, please email WestpacGroupBusinessAccreditationsUpdate@westpac.com.au.

Alternatively, please reach out to your BDM for any questions.

ANZ Commercial Update

Please take note of some important updates regarding commercial and asset finance loan applications from ANZ. These changes have been introduced with the intention of simplifying the process for both brokers and their business customers seeking finance solutions.

For Asset-Finance applications:

Capacity to Service
Effective immediately, Companies, Trusts and Partnerships will be assessed on a business capacity to service (CTS) basis only. This needs to be evidenced by one year of accountant-prepared Profit and Loss Statements and Balance Sheets for the borrowing entity. Director's or other parties Income Tax Returns are not required and should not be provided with the loan application unless ANZ specifically requests this.

If the capacity to service cannot be demonstrated based on the business CTS calculation, ANZ may consider an Aggregate Servicing, where Director/ Spouse's income may be considered. In these cases, you will be asked to provide:

  • Director's and or related parties latest Personal Income Tax Return (please remove all TFNs and PRNs). Please do not provide Personal Income Tax Returns unless asked to do so.
  • Statement of Position (SoP) form for Director's and/or related parties.
  • Spousal or domestic partner privacy consent needs to be provided with the SoP where the income and expenses outlined in the SoP include those of the spouse or domestic partner.

The SoP and Declaration of Spouse or Domestic Partner forms are attached and are also available on the Broker Hub.

To help in assess servicing accurately, please be sure to include all of the borrowing entities' current commitments, either by inputting directly into the system (if online) and/or by providing a full and up-to-date Commitment Schedule for the borrowing entity.

Upfront Privacy Consent
Effective immediately, ANZ requires privacy consents to be collected upfront for all parties for all new loan submissions. This means that either an ANZ Declaration & Privacy Consent or Industry Standard Broker Privacy Consent form must be submitted with the asset finance loan application.

Our settlement processes remain unchanged; an ANZ Declaration & Privacy Consent form is still required to be uploaded with executed Asset Finance loan documents. The requirement to provide a privacy consent form when submitting a loan application will not apply to inflight applications and a grace period of two weeks from today will apply.

Please ensure that any previous versions of forms held are deleted and that the new forms, attached and available on the Broker Hub, are used going forward.

For Commercial applications:

ANZ Business Credit Application Form
The ANZ Business Credit Application (BCA) form for commercial lending up to $1 million has been enhanced and simplified to make it easier for customers to understand and complete, saving them time when completing their application to borrow from ANZ. These enhancements to the BCA will create a faster time to decision for your customers, reducing the likelihood of errors that require re-work, which can slow down the process.

Some of the key enhancements include:

  • 12 pages down to 5 pages;
  • Written in plain English to help customers understand what information ANZ requires from them;
  • Ability to select one or multiple "use of funds" to explain the purpose of lending;
  • Removal of duplicated information that has already been obtained via conversations with you, the customer and other systems; and
  • A more compatible format that is not dependent on specific software to open.

Action required
The changes to the BCA form are effective immediately. To assist you with the changeover, ANZ will accept the old BCA form until 15 October 2021. Please delete all old versions of this form and ensure that only the latest version is used. The new BCA form is attached.

Redraw grandfathered for ANZ Business Loans
Effective immediately, Redraw will no longer be available for new ANZ Business Loans (ABL) or to existing ABL customers who have not already opted in for Redraw. However, this change will not remove Redraw for customers who already have it on their existing loan (subject to the terms and conditions) unless, and until, that loan is restructured.

The Business Offset account has also been updated so it is more in line with Redraw and to make it a better alternative for customers.

Please contact your Commercial BDM for more information.

Launch of New Product

Specialist SME finance lender, Grow Finance, is delighted to announce the launch of its new floorplan finance product that broadens its stable of asset finance and working capital solutions. The product has been created to enable brokers to meet the needs of the previously under-serviced small businesses dealers that require up to $3M in finance for new or used showroom assets.

Floorplan finance enables the purchase of high-value assets required to be in a showroom to facilitate a sale via a revolving line of credit. ..."In lieu of the dealer paying, the lender pays the upfront payment for the goods to the manufacturer or distributor directly. This structure releases the dealers cash flow, enhances efficiency, and helps increase turnover. It also supports individual stock turn cycles by being able to order stock based on historical or anticipated demand, said Greg Woszczalski, Founder and Executive Director, Grow Finance.

..."Floorplan finance is widely utilised by large corporates with showrooms nationally. Conversely, Grow Finances product has been developed to boost the profitability of smaller independent and family dealerships that find it notoriously challenging to raise and manage capital to finance inventory, continued Mr Woszczalski.

Whilst the facility is predominantly adopted by dealers, it is also available to manufacturers and distributors. The main sectors that have historically used floorplan finance are agricultural equipment, industrial equipment, recreational vehicles, marine craft, motorcycles, cars and light vehicles. Floorplan finance also covers replenishment stock (the spare parts and accessories that complement the inventory on the floor).

..."The release of our floorplan finance product is particularly timely as showrooms are getting ready to re-open their doors in many states and capitalise on the expected post-lockdown shopping frenzy, as well as maximise sales in the pre-Christmas rush. We also expect to see sustained demand for leisure goods whilst international borders remain tightly clamped " particularly over the summer months, concluded Mr. Woszczalski.

Businesses can access up to $3M of floorplan finance from 0.75% per 30 days on drawn funds (loan term of up to 180 days). Grow Finance can also facilitate the FX for overseas purchases and can organise freight forwarding, shipping, and customs for the goods.

Grow Finance is an established non-bank lender that specialises in providing broker access to a broad suite of asset finance and working capital solutions. The company is actively focused on creating new products that provide businesses with funding alternatives that contribute toward efficiencies and growth.

Myth Busters

Top 5 deposit bond myths busted!

  • Getting a deposit bond can take a few days and I dont have time as my client needs to exchange today - FALSE

Did you know that we can process an application and dispatch a digital deposit bond in as little as an hour?

  • My client has found a property they want to purchase but we don't have a finance approval in place yet, so I won't be able to obtain a deposit bond - FALSE

If you don't have a finance approval in place, we can still issue a deposit bond using our income and equity assessment. The quick rule for eligibility: Where settlement is less than 6 months, we need to verify 2 x the bond amount in equity.

  • My client is a first home buyer and doesn't own any property so we won't be able to use a deposit bond without a Finance Approval in place - FALSE

We can add an immediate family member as a guarantor for the Deposit Bond, they will need to sign a separate Guarantor statement.

  • My client is going to an auction, so they won't be able to use a deposit bond - FALSE

Deposit Assure can issue auction deposit bonds that are open deposit bonds up to 10% of a client's max purchase price. Auctions bonds can be used at Auction or for private negotiations.

  • When do clients pay back the deposit bond? - FALSE

The role is to guarantee your clients the deposit bond amount right up until they get the funds at settlement. The only money that is exchanging hands is the deposit bond fee, which will need to be paid upfront.

Gateway Cashback Offer

For a limited time, Gateway Bank has a $2,000 cashback offer on Green Home Loan products.

What's the offer?

New borrowers who apply for a Green Home Loan or a Green Plus Home Loan between 20 September 2021 and 31 December 2021 and fund the loan by 31 March 2022 will be eligible for $2,000 cashback1.

Offer is applicable to the following loan purposes: new to bank purchase or construction and external refinance.

What is a Green Home Loan?

Green Home Loans are designed to reward customers who have made the commitment to build, make enhancements, or live in a home that is gentler on the environment.

Green Home Loan Options

Green Plus Home Loan

Offers a variable rate of 2.34%pa2 (2.68%pa comp. rate) + $2,000 cashback when your client has:

  • An energy-efficient home with 7 Star NatHERS ratings or above; or a Residential Efficiency Scorecard.

Criteria: Provide a certificate from an accredited assessor showing a 7-star energy efficiency rating from the Nationwide House Energy Rating Scheme (NatHERS) or a 7-star Residential Efficiency Scorecard.

Green Home Loan

Offers a variable rate of 2.44%pa3 (2.78%pa comp. rate) + $2,000 cashback when your client has:

  • Three eligible environmentally friendly features such as solar systems/panels, rainwater tanks or other energy-efficient features.

Criteria: Provide Statutory Declaration confirming the home has the relevant environmental features required or a Residential Efficiency Scorecard rating of 4 stars up to a maximum 6-star rating.

For more information on Green Home Loans visit: Green Home Loans | Compare Eco Home Loans | Gateway Bank

Residential Bridging Loan

After the arrival of Cameron and Kelly's second child, the thought of a move to the coast seemed, at first, unachievable. Selling and buying houses, settlement dates, appointments with real estate agents, removalists, all on top of interrupted sleep.

When discussing a Bridging Loan with their local mortgage broker, Cameron and Kelly's dream of a home on the Surf Coast appeared closer - and easier - than ever.

A valuation on each property was obtained showing the current owner-occupied property (Knox, VIC) to be valued at $1,150,000, and the property to be purchased in Torquay, VIC valued at $720,000.

Maintaining an LVR of under 75% of the value of the combined security value, an interesting budget for 12 months was included within the loan amount to cover monthly repayments during the bridging period. This allowed Cameron and Kelly to move into their new property prior to placing their current property on the market.