Policy changes to help you service more customers

03 Jul 2023
Select Policy Change EDM
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We’re here to help you service more customers and grow your business, and this is the first of many changes you’ll see coming through from us at Select.

Making it easier for self-employed customers: 

  • Prime Alt requires only TWO forms of income verification. This includes two of the following: 6 months business bank statements, 6 months most recent GST returns or an Accountant’s Letter. Note: there is no longer a requirement for a P&L.
  • Near Prime, Specialist and Specialist+ Alt only require ONE form of income verification. This includes one of the following: 6 months business bank statements, 6 months most recent GST returns or an Accountant’s Letter. Note: 6 months business bank statements are no longer mandatory.
  • Cash out on Prime and Near Prime Alt has increased to $500k for loans with <75% LVR. Loans with >75% LVR can get up to $100k cash out with Prime and Near Prime.

 

Helping investors build wealth:

  • Investors with 5+ properties can verify rental income via rental statements. The requirement to provide financials has been removed.
  • Rental income is shaded at 80%. Including commercial and AirBNB. Note: this has increased from 70%.
  • 1 months rental evidence if via a managing agent. 3 months rental evidence is required if private. Note: this has decreased from a 3 month requirement.
  • $500 surplus after expenses requirement removed for >75% LVR loans.

 

Improving our customers’ serviceability with different types of income

  • Proposed Boarder income is now accepted on owner occupied purchases. This is capped at $300 per week.
  • 100% of car allowance now ACCEPTED as income and overtime shading increased to 80% for Prime loans. Car allowance and overtime income have increased from 50% shading.
  • Casual income accepted >6 months with current employer and 12 months total history evident. There is no longer a 12 month minimum and same industry requirement.

 

Others improvements to policy 

  • 10-storey limit has been removed for apartments, and the minimum size decreased to 35 sqm. Prior minimum size was 50 sqm.
  • Customers can apply for a loan increase 3 months after settlement. Previously 6 months.
  • We now accept iVals (AVMs) and desktop valuations on Prime and Near Prime loans, plus we’ll cover the cost – subject to valuation criteria.
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