A second tier has announced policy changes it says will cut its turnaround times in half.
Bankwest has launched initiatives tipped earlier this year by head of specialist banking Ian Rakhit. The bank will put more automated application processes in place, and will tweak its credit policies with the aim of bringing approval times down.
One of the mooted changes is to the bank's income validation policy. Rakhit said Bankwest will now require only one acceptable electronic year to date income payslip to verify base income no more than 45 days from the application date, and covering at least two pay cycles.
Rakhit said the changes were decided upon after "in-depth discussions" with the bank's broker network. He predicted they would yield "significant improvement" in reducing the number of broker deals delayed because of further information being required.
"This policy change could take one or even two days out of the time taken to reach unconditional approval as well as reduce paperwork and the time brokers spend chasing customers for supplementary documentation," he said.
Refinancers will also benefit from the new policy, Rakhit said. The bank will now accept three months of Bankwest transaction account statements showing salary credits.
Rakhit added the caveat that the policy would not fully apply to borrowers who need an income level above their base income in order to service the proposed home loan. He said such deals would require additional supporting documents, such as a letter from a respective employer detailing written evidence of commission or retainer. The borrowers would also be required to have been with their current employer for a minimum of 12 months.
Rakhit said brokers can expect further policy improvements from Bankwest in the months ahead.
"In addition to the current initiatives we are excited to introduce later this year delegated underwriting authority and a customised broker checklist which will also significantly reduce turnaround times by simplifying processes and ultimately deliver a happier banking experience for our customers," he said.
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