Management of Servicing Rates in ApplyOnline
Here is a short note to provide some clarity regarding the management of servicing rates in ApplyOnline.
Given the recent changes in serviceability rates, ApplyOnline are perceiving some confusion from front end users. Where brokers have historically seen lenders apply a set assessment rate (for example: 7.25%), they are now seeing many apply a floor rate (for example: 5.5% or 5.75%). However, it is important to note that these are floor rates, and, they are applying higher rates (for example: the actual fixed rate, a reversion rate, or actual rate plus margin). As a result, we are seeing many loan applications that have rates ranging from the floor to 7% and onwards.
ApplyOnline primarily wanted to communicate that as lenders are making changes to serviceability rates, these can be made in real time in ApplyOnline, and all servicing rates in ApplyOnline are current as per the instruction of lenders. There are no delays, unless where a lender has asked ApplyOnline to specifically delay the application of new servicing rates, such as CBA, NAB, Advantedge and Heritage Bank - who have chosen to implement changes on selected dates in August.