Latest updates on Myloan Elect

LATEST NEWS

There will be a scheduled system outage from 8:00pm (AEDT) Friday 18 October 2024 to 11:00pm (AEDT) Friday 18 October.

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.

Note: There is no impact to StarNet during this outage.

Enhancing our service proposition – with more support and greater confidence!

We’re committed to continuously enhancing the service we provide you to ensure we stand by our core values of simplicity, transparency and exceptional service.
Pre-application support and ensuring you can submit applications with confidence is key to delivering a great customer experience.
That’s why we’re excited to announce that we’re relaunching our Scenarios team – with more resources and a greater focus on delivering a simple experience to you and your customers.

Dedicated credit advice, before you submit an application
Our Scenarios team offers market leading pre-application support, including:

• A dedicated team, run by highly experienced credit officers.
• Expert advice and upfront exceptions provided, ensuring a quicker and simpler application experience.
• Greater confidence in the outcome before submitting your application.
• Two-way contact via email and outbound phone calls where more information is required.
• A service open to all our brokers which enables you to receive either a quick no answer, or a yes with a scenario reference number.

How do I use this service?
With our updated Advantedge scenarios proposition, we will now provide you with two key resources – one for policy clarification and another for policy exceptions for scenarios outside of guidelines.

• Where help is needed with policy clarification, brokers can email our Scenarios team at Advantedge.Scenario@advantedge.com.au.
• Where help is needed with an exception to policy for a scenario outside of our guidelines, brokers can email a Credit Coach at mycreditcoach@advantedge.com.au.

When responding, our team will provide a reference number (coming August 2024) to use when submitting the application to ensure a smooth submission experience.

Important reminders

• When submitting an application, please provide a copy of any email correspondence you have with the Scenarios team and (if an exemption has been approved) the reference number.
• All policy exceptions are subject to the application passing the system decision criteria when the full application is submitted.
• All applications are subject to a full credit assessment.

Check out the latest updates from MyLoan Elect below, including:

Need to settle by June 30?

To ensure settlements are completed before the end of the financial year on June 30, please take note of the following cut-off dates:

Scheduled system maintenance

There will be a scheduled system outage on Friday 7 June from 9:00pm – 11:00pm (AEST).

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.

If you have any questions, please speak to your Business Development Manager.

• Changes to how we assess serviceability
  
  We’re updating our serviceability calculator to accommodate upcoming tax cuts, Household Expenditure Measure (HEM) values and the updated Medicare Levy low-income thresholds.
  What’s changing?
  1. Tax rates will be updated to reflect the government’s tax cuts which are effective from 1 July.
  2. Updates will be made to account for the new Medicare Levy low-income thresholds.
  3. Our Household Expenditure Measure (HEM) values will be updated from Friday 7 June to align with the latest APRA requirements.
  New serviceability calculator

  The latest version of the Advantedge Serviceability Calculator (V50) will be available on your aggregator systems from Friday 7 June.

  Pipeline applications
  • For any new home lending submitted after 12:00am on Friday 7 June 2024, please use v50 of the Serviceability Calculator.
  • Click here for full details on how to treat pipeline applications.

   

• Removal of LMI refunds for loans repaid between 12-24 months:
  
  From 10 June 2024, Advantedge and QBE are updating their LMI refund criteria to remove the LMI premium refund for home loans that are repaid between 12 – 24 months.
  There is no change to the criteria for home loans repaid within the first 12 months.
  
  

  Pipeline applications

  • Customers who take out a new LMI policy, and their loan is drawn down prior to 10 June 2024 will be covered by the existing LMI refund criteria and therefore still eligible for the 20% LMI refund if the loan is repaid between 12-24 months of drawdown.
  • Customers who take out a new LMI policy, and their loan is drawn down on or after 10 June 2024 will be covered the new LMI refund criteria and therefore only eligible for an LMI refund if the loan is repaid within the first 12 months of drawdown.

   

   

The following enhancements will be made to ensure a better experience for customers who have extended their construction period:

• We’ll send customers a letter to remind them when the extension to their construction period is ending
  This letter will ensure that customers are aware that their extension period is coming to an end and provide them with their options / next steps.
• The loan will automatically roll onto our standard variable P&I product unless we hear from you
  Construction loans with an approved extension past the initial 2-year period will now automatically roll onto our standard variable P&I product at the end of the extension period. If for any reason the construction is unable to be completed before the end of the extension period, please contact us.

Why choose Finsure Loans for construction loans:

• Plenty of time to complete construction with all construction loans now an initial 2-years Interest Only.
• Great value with our standard Principal & Interest rate applied across the Interest Only period.
• Exceptional support with a dedicated credit assessor and case manager to look after you throughout the construction experience.
• No progress drawdown fees.
• No valuations fees.
• No loan variation fees.

Additional changes to how we treat extensions to the construction period
From Monday 27 May, the following rules will now apply to all new construction loan extension requests:

• Extension requests can’t be raised before the last 90 days of the original construction period.
• Where a customer needs an extension and funding increase, the extension will commence from the date the funding increase is drawn down – not at the completion of the 24 months.
• If the customer is just requesting an extension without a funding increase, the extension will commence at the expiry of the original construction period.

• Are you familiar with ApplyOnline’s new user interface? From 27 May you won’t be able to revert to the old version of ApplyOnline’s user interface so we want to make sure you’re prepared.
• Reminder: EOFY cut-off dates for settlement: Take note of these cut-off dates if you need to settle before the end of the financial year on June 30.

Are you familiar with ApplyOnline’s new user interface?
ApplyOnline has a fresh new look, with NextGen.Net recently releasing a new user interface to make the lodgement experience simpler and faster.

The old user interface will soon be unavailable

You may have noticed that you still have the option to revert to the previous version of the ApplyOnline user interface. This is a temporary option to ensure you have time to become comfortable with the new user interface before the old user interface becomes unavailable on Monday 27 May 2024.

What’s changed
How ApplyOnline works remains the same – continue to create your customer’s application via your CRM, import it to ApplyOnline, review lender-specific validation rules and upload mandatory supporting documents prior to submitting.
The changes to the UI include:
• New layout
• Contemporary look and feel
• Efficiency features

Training and resources
If you are still not familiar with the new user interface, we strongly recommend you begin using it as soon as possible to lodge applications.
You can use the below training and resources to support you with this transition:
• User Guide: Check out this user guide which walks through the changes (includes screenshots!)
• Webinars: Click here to register for more in depth ApplyOnline training from NextGen.Net
• Video: Have a look at this Introduction to ApplyOnline – New User Interface video

Reminder: EOFY cut-off dates for settlement
Don’t forget the cut-off dates you need to know to ensure settlements are completed before the end of the financial year (EOFY) on June 30:

Rate Changes for Myloan Elect effective from 1 May 2024.

What you need to know:
Effective Wednesday 1 May 2024 fixed rates are changing for new lending.
There are no changes to variable rates at this time. A full set of rates are below and on our systems from Wednesday 1 May 2024.

See below:

Check out the latest updates from MyLoan Elect below, including:

• Our loan variation form is changing: To ensure we continue to protect our customers and meet Anti-Money Laundering obligations, from Monday 29 April there will be mandatory ‘Source of Wealth’ questions you must answer for specific loan variation requests.
• Tips to speed up the variation process: We want to make sure your loan variation experience is as smooth as possible. That’s why we’ve put together some tips to help you speed up the process.
• EOFY cut-off dates for settlement: Take note of these cut-off dates if you need to settle before the end of the financial year on June 30 2024.

Our loan variation form is changing
To ensure we continue to protect our customers and meet Anti-Money Laundering obligations, from Monday 29 April there will be mandatory ‘Source of Wealth’ questions you must answer for the following loan variation requests:

• Adding or removing a borrower
• Removing a guarantor, director of a company and/or trustee
• Loan increase
• Security substitution

How to capture this information

A new section will be included on the loan variation form called Section 12: AML Details – Source of Wealth. This new section will prompt you to ask ‘Source of Wealth’ questions and record the information.

Pipeline applications
• Previous versions of the form will be accepted up until 5pm on Friday 3 May.
• After this date, the updated version A140716-0224 must be used.

Tips to speed up the variation process
We want to make sure your loan variation experience is as smooth as possible. That’s why we’ve put together some tips to help you speed up the process.
Some common sections that often need rework are:
• Loan Features: You’ll need to consider the rate type, repayment type, and product type based on your customer’s preferences and circumstances.
• Repayment at retirement: If your customer’s application falls into the non-imminent or imminent retirement categories, make sure this section is carefully completed.

EOFY cut-off dates for settlement
To ensure settlements are completed before the end of the financial year (EOFY) on Sunday 30 June 2024, please take note of the following cut-off dates for settlement:

A simple retirement strategy policy

Applying the below exit strategies is simple, all you need to do is follow the online prompts when completing the loan submission.

Who does this policy apply to?

• Applicants aged 55 or over; and/or
• Applicants who plan to retire within the next 10 years

Two retirement strategies to choose from

For these applicants we provide two retirement strategies:

1. When financial assets are equal to a minimum of 100% of the total home loan limits as at application drawdown, excluding the owner-occupied home
2. When downsizing, the customer has a minimum of $200k equity
   • If there is a shortfall in equity this can be made up by verified financial assets

For full policy details, including how to apply each of these tests, acceptable financial assets and documentation required, please refer to our Lending Guidelines Manual available on your aggregator systems.

Our standard loan terms are either 25 or 30 years

Our standard loan terms are 25 or 30 years. So, we won’t ask any of your customers to select a short loan term because of their age – assisting with serviceability and lower monthly repayments.

Further support

If you have any questions or would like to discuss a customer’s scenario, don’t hesitate to contact your MyLoan Elect BDM.

Check out the latest updates from MyLoan Elect below, including:

Changes to the Residential Short Form Valuation Process: From 15 April, when you order a valuation and the system determines that a Residential Short Form Valuation needs to be completed, you’ll need to ensure a home loan application is submitted before the short form valuation can proceed.
Scheduled system maintenance: There will be an outage on Friday 19 April from 9pm – 11pm (AEST).

If you have any questions, please contact your Business Development Manager.

We’re making changes to the Residential Short Form Valuation Process
From 15 April 2024, when you order a valuation and the system determines that a Residential Short Form Valuation needs to be completed, you’ll need to ensure a home loan application is submitted before the short form valuation can proceed.

This is an extension of the process introduced for Long Form Valuations late 2023.

Please note: Construction and Rural valuations are exempt from this change.

What this means for you

Where a Residential Short Form has been determined, the valuation will be directed to the Valuation Support Team to review whether there is a corresponding Application ID associated.

Where Valuation Support cannot locate an Application ID, the team will contact you via email to confirm whether the application has been submitted.

Alternative option for customers not ready to submit an application

If there is no application, and there will not be an application submitted within 48 hours, the valuation will be cancelled. The following indicative option can be leveraged to support our customers within the pre-application stage:
Indicative property value: We offer a Property Profile Report via Property Hub

If you have any questions, or have explored the alternative option for a customer who isn’t yet ready to submit an application, please contact your Business Development Manager.

We have some great policy niches which make it simpler for self-employed customers, and with a competitive product offering, quick turnaround times and outstanding service MyLoan is a great option to help your self-employed customers achieve their goals sooner.

Simple assessment requirements for self-employed customers

Self-employed customers have the option to use the most recent year’s financial information for assessment, where accompanied by accountant prepared financial statements for the year prior and when we can clearly confirm income for the applicants.

To do this:

1. Obtain the past 2 years financial statements.
2. Where the most recent year’s financial figures are being used then you will also need to record commentary outlining:
   a. The change or event that has occurred resulting in the most recent year being more appropriate.
   b. Where is the change evident in the financial statements (e.g., increase to gross income or decrease in expenses)?
   c. How is this change is going to be ongoing into the future?
3. Enter the most recent year’s financial data when submitting the application – the same information will need to be added to both years in the lodgement system.

Director Wages income verification over minimum six months (180 days)

Last year we simplified our policy by reducing the minimum verification period required for director’s wages to six months (180 days) which has helped self-employed customers achieve their home ownership goals.

To verify this, we need either:

• a recent Australian Taxation Office (ATO) income statement showing a minimum of six months of income history, or
• their most recent tax return

Note: Payslips are no longer accepted.

To simplify and provide improved protection, we’re making changes to the Non-Banking Financial Institution payment facility which supports Advantedge payments effective from 25^th March 2024.

These changes mean we’ll no longer support the following:

• External direct debits out of an Advantedge home loan account.
• Internal loan repayment direct debits coming out of an Advantedge home loan to pay another Advantedge home loan or split.

To accommodate above change we have updated the following documents: 

• BPAY and Direct Salary Credit Guide
• Building your business together brochure
• Understanding Redraw and Repayments brochure

Changes to external direct debits from MyLoan Elect accounts

From Monday 25 March 2024, we’re making changes to the Non-Banking Financial Institution payment facility which supports Advantedge payments.
These changes mean we’ll no longer support the following:

• External direct debits out of a MyLoan Elect account.
• Internal loan repayment direct debits coming out of a MyLoan Elect home loan to pay another MyLoan Elect home loan or split.

What customers need to do
Customers who currently have one of these external direct debits set up will need to make alternative arrangements.

We’ve let customers know
We’ve sent a letter to all impacted customers to advise them of this change and that the following action is required:

• For customers who have nominated a MyLoan Elect account for an existing loan split to loan split repayment, we’re asking them to update their direct debit account details for that split by completing and returning the direct debit form. The direct debit form was sent with the letter.
• For customers who have a direct debit set up to be paid out of their MyLoan Elect account, we’re asking them to make alternative arrangements with the relevant third party.

Why we’re making this change
This change will help us better protect our customer’s accounts from financial crime.

How you can help
Please be aware of this change in case any of your customers have questions or require assistance.

Supporting customers refinancing to Myloan Elect

How to submit an Alternative Refinance Assessment application

Chat to your customer about their situation and if they meet the criteria then simply complete this template confirming the customer is completing a like-for-like refinance, and is eligible for an Alternative Refinance Assessment.

You can also refer to the Advantedge Serviceability Calculator and use the ‘Alternative Refinance Assessment’ checkbox to see if eligible customers will meet serviceability requirements under the alternative assessment method.

Note: Full verification and other lending criteria still apply and may impact credit decisions.

Click here for information on how to treat pipeline applications for this change.

Eligibility criteria for Alternative Refinance Assessment

Applicants will be eligible for Alternative Refinance Assessment if the below criteria are met.
• Application must fail standard servicing assessment
• Individual applicants only, maximum 2 borrowers
• New loan is being refinanced in the same individual names as the existing loan
• Loan Purpose is for External Refinance
• Existing loan and requested loan must be Principal and Interest
• LVR is not greater than 80% and no LMI is required
• Refinanced loan amount must be for a maximum of 1% higher than the current Home Loan limit (verified via CCR or Bank Statement)
• New loan must be for the same term or longer, where the term is extended the risks of extra interest and repayments explained to the applicant/s
• Interest rate on the new loan facility is the same or lower compared to the customer advised rate on the existing facility
• Customer has had the existing home loan for a minimum of 12 months, with clear repayment history verified via CCR or Bank Statements
• All other existing facilities held by the customer/s and reported to CCR have had clear repayment history (reflected as ‘0’, ‘P’ and/or ‘R’) for 12 months or since opening (if open less than 12 months)
• There have been no financial difficulty or foreseeable changes declared
• Confirmation held that there have been no detrimental changes to the applicants’ primary income source since the existing loan was established

The following loans and applicants are not eligible:
• Interest only and Interest in Advance loans
• Non decision tool assessed lending
• Linked applications (where other applications are not eligible)
• Guarantor loans including Government Guarantee Schemes
• Debt Consolidation of Unsecured Debt
• Foreign Income / Non-Residents
• Bridging loans
• Construction loans
• Divorce/Separation (where borrowers will change)
• Investment Loan purpose
• Debt To Income Ratio above 6

More information

Check out more information on eligibility criteria below and contact your BDM to chat through any scenarios you have.

Changes to the eligibility criteria for Alternative Refinance Assessment applications

We’re making some minor changes to the eligibility criteria for Alternative Refinance Assessment (ARA) applications.
What’s changing from Friday 23 February 2024, the below application types will no longer be eligible for ARA applications:

• Investment Loan purpose
• Debt To Income Ratio above

Updated serviceability calculators
To support this change, an updated manual serviceability calculator (v49b) will be made available on your aggregator systems from 22 February.

Please note: The only update we’re making to the calculator will be to advise users that Debt to Income Ratio above 6 will be outside of policy for Alternative Refinance Assessment.
Please refer to the pipeline treatment below for more information on when to use the new calculator.

Pipeline applications
Click for full details on the process for in-flight applications.

Elect Advantegde: Turnaround times remain at one business day!

We’re continuing to provide fast, efficient service with turnaround times remaining at one business day for new applications, variations and construction progress payments. For full details check out the service levels page on the Advantedge website.

Simple, stress-free variations

A customer’s home loan needs may change overtime and our variations process, along with our consistently fast turnaround times, help make these changes simple and stress-free for both you and your customers. For loan variations requiring credit assessment, you can submit these using the Elect Advantegde variation form. This form is available in your aggregator system and can be used for:

• limit increases
• changing repayments from Principal & Interest to Interest Only
• changes to the Interest Only term
• changes involving guarantors, trusts and companies

For non-credit critical loan variations, simply visit our Digital Variations Hub where you can submit the following requests:

• fix a loan
• split a loan
• change the loan purpose
• merge loans
• transfer the limit between splits
• break a fixed rate
• convert a loan from Interest Only to Principal & Interest
• reduce a loan limit

Further support
If you have any questions or would like to discuss a customer’s scenario, please contact your BDM.