NAB Broker has announced a range of changes to its lending policies, in the wake of APRA’s crackdown on home lending.
Effective 5pm on Friday 5 June 2015, new variable rates will apply for investment loans. According to communication from NAB to mortgage brokers, obtained by
Australian Broker, the new investor loan variable rates range from 4.53% to 4.96% depending on the loan amount and LVR.
For investor loans of $250,000 to less than $500,000, with an LVR up to 90%, the variable rate will be 4.63%. For loans less than $250,000, with an LVR up to 90%, the new variable rate will be 4.83%.
Effective 5pm Friday 5 June 2015, new variable rates will also apply for Homeplus Low Doc loans. Variable rates will range from 4.74% to 5.04%, depending on the loan amount and LVR.
For Homeplus Low Doc loans of $250,000 to less than $500,000, with an LVR up to 75%, the variable rate will be 4.80%. For the same loan amount with an LVR from 75% to 80%, the new variable rate will be 4.85%.
For loans less than $250,000, with an LVR up to 75%, the new variable rate will be 4.95%. For the same loan amount with an LVR from 75% to 80%, the new variable rate will be 5.04%.
Further, effective Saturday 13 June 2015, the maximum LVR (including LMI capitalisation) for investment loans will be reduced to 90%.
Also effective Saturday 13 June, a loading will be applied on existing mortgage repayments as part of the serviceability assessment. This applies to existing loans which are not being refinanced or paid out as part of the application.
The affordability rate used in the serviceability assessment will be also be amended, effective Saturday 13 June, to be the higher of 7.40% or 2.25% above the effective borrower rate. Currently a 7.40% affordability rate is used for all applications.
Finally, customers will need to provide evidence of non-NAB loan repayments. According to the communication obtained by
Australian Broker, acceptable evidence will be based on loan type.
For principal and interest loans, a loan statement and internet account summary or internet transaction listing no older than six months showing scheduled amount or minimum one month of loan repayments must be provided.
For interest only and line of credit loans, a loan statement and internet account summary or internet transaction listing no older than six months showing current limit and current interest rate must be provided.
