Myloan Elect
LATEST NEWS
MyLoan Elect is here to support business owners in realising their home ownership goals sooner with simple verification requirements, including our latest enhancement where we now only require a lodged one-year tax return for self-employed income where the LVR is 80% or under.
One-year lodged tax return to verify self-employed income where the LVR is 80% or under
We now only accept a one-year lodged tax return to verify self-employed income for applications where the LVR is 80% or under.
The one-year tax return must be accompanied with confirmation that it has been lodged – this can be either from their accountant or from the ATO.
The two-years financial statements can continue to be used to verify only self-employed income for home lending where the LVR is above 80%.
New serviceability calculator
The latest version of the Advantedge Serviceability Calculator (V52) is now available with a new drop-down selection available for ‘Single year income’.
Pipeline applications
- The new policy will apply to all new home lending application submitted on or after Friday 21 March 2025.
- The old policy will apply to all home lending applications submitted prior to Friday 21 March 2025. This includes applications that undergo re-assessment after Friday 21 March 2025.
For home lending applications with LVR over 80%
- There’s no change to the requirement to provide two years of financial information to verify self-employed income for home lending applications with an LVR over 80%.
- However, you can now provide either two years’ tax returns or two years’ financial statements (profit & loss).
If you provide two years’ financial statements and want these to be assessed based on the most recent year, this option is still available when you provide commentary outlining why recent performance is a more appropriate indicator of future performance – as you do today.
Reminder: 2024 financial info required from 1 April!
From 1 April 2025 we now require an applicant’s 2024 financial information to verify their self-employed income.
- Where the LVR is 80% or below, this must be their 2024 tax return.
- Where the LVR is above 80%, this can be either their 2024 tax return or financial statements (profit & loss).
Reminder: Director wages income verification over minimum six months (180 days)
To verify director’s wages, we only need six months (180 days) of information in the form of either:
- a recent Australian Taxation Office income statement showing a minimum of six months of income history, or
- their most recent tax return
Note: We cannot accept payslips to verify director’s wages.
In line with the February 2025 RBA announcement, effective Monday 17 March 2025, MyLoan Elect is decreasing variable interest rates for both new and existing variable rate home loans.
Effective Monday 17 March 2025, variable rates are decreasing for new and existing lending by 0.25% p.a.
For example, interest rates for new lending with ≤80% LVR will be as follows:
For more important information on comparison rates, please refer to ‘Important Information’ section below.
How we’re telling your customers
Customers with an existing variable rate home loan will receive a letter advising them of changes to their interest rate and repayments.
Pipeline applications – timing
- The effective date of this change will be no earlier than Monday 17 March 2025 for in-flight applications, but will vary depending on the loan settlement date as follows:
- Loans settled before 5pm Tuesday 25 February 2025 will have variable rates decreased by 0.25% p.a. on Monday 17 March 2025
- Loans settled after 5pm Tuesday 25 February 2025 will retain their current contracted variable rates until the month following settlement, when they will be decreased by 0.25% p.a. The adjustment will not be retrospective
- All variable rate loans formally approved and instructed on or after Monday 17 March 2025 will receive the rates on the updated rate card
Pipeline applications – reassessment
- AIP – to purchase a property
This can be in place for 90 days providing there is no credit critical change.
- Conditional Approval to refinance / cash out / consolidation etc
These loan applications must service at the rate of the date of the final loan assessment.
A full set of rates will be made available on our systems from Monday 17 March 2025.
Don’t forget the benefits of choosing MyLoan.
A digital end-to-end service experience to support you with efficient lodgement and processing of your applications.
Direct access to credit managers, with optimal turnaround times for quality applications.
A 24-hour turnaround (SLAs).
Customer Net Promoter Score (NPS) +20 and Broker NPS +61 in Advantedge Broker and Customer Satisfaction Surveys August 20242.
We’ve updated our Terms & Conditions
We’ve updated the Loan Contract Terms and Conditions and the latest version (version 44) is effective from Monday 17 February 2025.
Summary of changes
We’ve made updates which include the following:
- Clause 5.4 to provide greater clarity on when payments will be taken.
- Clause 8.1, 8.4 and 13.14 to allow us to notify customers of changes in any way permitted by law.
- Part 4: INFORMATION STATEMENT, Section 8 to reflect regulatory changes which no longer mandate notifying changes to an annual percentage rate in a newspaper publication.
- Part 5: DIRECT DEBIT SERVICE AGREEMENT, Section 2 to increase the period we will give written notice from 14 days to 30 days in instances where we may vary any details of this agreement or a direct debit request.
- Page 41: We have included information on how to best contact us for customers with hearing or speech communication difficulties along with customers who do not speak English
Accessing the updated Terms & Conditions
For full details we encourage you to read the updated Loan Contract Terms & Conditions Booklet which is available at https://www.advantedge.com.au/home/borrowers
Updating our customers
Existing customers have received a unilateral notice with their half yearly statement in January 2025 outlining the above changes.
Any customers who have signed their loan contract prior to 17 February 2025 will receive a letter along with the updated Loan Contract Terms and Conditions from MSA at settlement.
Scheduled system maintenance
There will be a scheduled system outage on Friday 21 February from 8:00pm to 11:00pm (AEDT).
What this means for you
During the outage you’ll still be able to submit applications via ApplyOnline, however you won’t receive a credit decision or reference number until systems are restored.
You can continue using LoanApp during this time to capture data, but will be unable to submit loan applications until systems are restored.
What this means for customers
During the outage period customers will be unable to access StarNet to check their account information or transfer funds.
There will be a banner on StarNet notifying customers of the outage.
One-year lodged tax return to verify self-employed income for home lending 80% LVR or under!
We’ve updated our credit policy and will now require only a one-year tax return, accompanied by confirmation that it’s been lodged to the ATO, to verify self-employed income for MyLoan Elect applications with an LVR 80% or under.
What’s changing?
We’re rolling out this new policy over the coming months to ensure a smooth transition and seamless experience for you and your customers. Here’s the key information you need to know:
For home lending applications with an LVR 80% or under:
- From Friday 13 December, you can submit a one-year tax return, accompanied by confirmation that it’s been lodged to the ATO, to verify self-employed income for home lending applications with an LVR 80% or under.
- Over the coming months, we’ll update our credit policy and systems to reflect the change in policy.
- From March next year, tax returns will be the only document we accept to verify self-employed income for these applications.
- Until then, you can continue to provide two years of financial statements (profit & loss) to verify self-employed income for applications with an LVR 80% or under until further notice.
For home lending applications with LVR over 80%:
- There will be no change to the requirement to provide two years of financial information to verify self-employed income for home lending applications with an LVR over 80%.
- However, you’ll now be able to provide either two years’ tax returns or two years’ financial statements (profit & loss).
For home lending where financial statements are used to verify income:
If you provide two years’ financial statements and want these to be assessed based on the most recent year, this option is still available when you provide commentary outlining why recent performance is a more appropriate indicator of future performance – as you do today.
Applications that are ineligible for the one-year tax return option
Where your customer’s tax return is yet to be lodged or only financial statements (profit & loss) are provided, the one-year tax return cannot be used.
For applications that are higher than an 80% LVR follow the existing process.
Pipeline applications
The new one-year lodged tax return option is available for all new home lending applications with 80% LVR or under submitted after Friday 13 December 2024.
Any application submitted with two years’ worth of financial information will be assessed based on the existing policy.
What you need to do
Start asking your self-employed customers for their most recent available tax return (2023 tax returns are acceptable under policy until 31 March 2025) and confirmation of lodgement for all eligible MyLoan Elect applications.
The confirmation of lodgement needs to be from either their accountant or the ATO.
How to submit with one-year lodged tax return or using most recent years income from financials
When submitting an application using the most recent year’s income information, please enter the same figure in both years in your lodgement system, as you do today.
Further Support
If you have any questions or want help submitting an application, please contact your MyLoan Elect Business Development Manager.
