Empower Credit & Policy Changes
We'll be enhancing your AVM experience over time, and the first phase, as outlined below, is available from Wednesday 3 October.
Depending on the property, the below criteria will allow for the use of an AVM:
- Refinance home loan applications
- Up to a maximum LVR of 70%
- Up to a maximum property value of $1.5 million.
For our brokers there is no change in the current process, simply go to property hub and enter in the details, AVM will just become another option along with COS, Desktop & Short form valuations
Please note that we've made a number of changes to our loan serviceability.
- Common Debt Reducer, we have made changes to the application of joint debt. When a spouse (married or defacto, known as the 'Applicant') applies for a Vow home loan solely in their name (and has another existing loan held jointly with their spouse), we will only include the Applicant's share of debt for their existing loan in our servicing assessment for their new loan. This is subject to verifying that the Applicant's spouse can afford their share of the other existing debt. Click here for more information, including an example.
- We're changing the collection of property-related expenses. This means there'll be no double up with any investment property expenses in the final credit assessment.
For certain circumstances, we're introducing a minimum servicing surplus requirement of $500 p.a.,
In line with the quarterly release of the new Household Expenditure Measure (HEM), we've updated our serviceability calculator. A copy of this is attached for your reference here: Serviceability Calculator
Please note any applications in flight that can be formally approved prior to Monday 22 October can be assessed according to the existing policy and serviceability calculator.