Queensland FM Update Notes

Yellow 2.0 Update

  • Supercharging the initial Yellow offering.
  • More discounts for customers and better offers with partners.
  • Tiered structure based on product level and customer loyalty.
  • All CBA home loan clients get access to Yellow Gold.
  • Additional savings directly with Commonwealth Bank.
  • Offers with external partners (e.g., Ampol, Coles).
  • Cash back directly into bank accounts.
  • Easy sign-up process via the app.
  • Examples: concert tickets, early access to events.
  • Platinum level requires $1 million in original home lending balance.
  • Gold level requires $50,000 in savings or a home loan with a certain balance.
  • Cash back examples: 5 for Comsec loyalty, $10 for simple home loan, $4 for a package, $30 off a More Telecom phone plan.
  • Customers can check their CommBank app to see their level and benefits.

LVR Updates

  • Implemented on May 24, aiming for simplification.
  • Increased LVR up to 95% for properties valued up to 3,000,000. Family guarantee scheme applications are excluded.
  • 80% LVR for properties valued between 3,000,000 and 6,000,000. Requires valuation with no risk alerts and suitable internal scoring.
  • Standard industry practice for property solicitor acceptance.
  • For 24,000,000 deals, 60% LVR is reasonable.
  • 80% LVR was previously capped at 5,000,000, now increased to 6,000,000.
  • Construction loans also benefit from the increased LVR.
  • Quantity surveyor costing reports usually include a 5% contingency.

Digidocs and Loan Account Authority Changes

  • Applies to applications with three or more individual borrowers.
  • Loan account setup (LAS) and home loan documents are accessed via NetBank inbox.
  • Only the loan account setup button is initially visible.
  • Loan account setup must be completed before accessing Digidocs.
  • If the document pack is voided and reissued, customers do not need to refill the loan account setup.
  • Customer account selections are viewable in the comments in BrokerInComBroker.
  • Data can be edited by the customer multiple times until 48 hours before settlement.
  • For two borrowers, once the first loan account setup is completed, the second confirms details via NetBank.
  • Both receive notifications once setup is finalized and documents are ready in DocuSign.
  • Customers should retain all loan documents related to NetBank messages until after settlement.
  • If customers have issues, the document pack can be voided and reissued. Reach out to your doc rep case manager to ask them to void the pack and and reissue it to start again

Simple Home Loan Product

  • Coming to market in the second half of the year.
  • New modular product focused on simple home loan needs.
  • Focuses on saving on interest and having the choice to link up to everyday offset accounts.
  • Maximum of two offset accounts.
  • Unlimited additional repayments and redraws.
  • Option for interest-only repayments.
  • Top-ups are allowed.
  • Replaces the Extra Home Loan; the Extra Home Loan will be phased out.
  • Suitable for customers wanting a simple home loan with few frills.
  • Streamlined submission process.
  • Digitization of more loans to speed up SLA.
  • Available under property shares and with LMI and family guarantor deals.
  • Operates like a standard home loan but with fewer features.
  • Lower interest rate than the Extra Home Loan.
  • Rates are available on the provided link, with pricing options available.

End of Financial Year Key Dates

  • Most dates have passed but serve as a guide.
  • For urgent settlements before the end of the financial year, contact your BDM.
  • Regional government guarantee scheme funding is likely exhausted; however, continue applying as new slots open daily.
  • If a regional slot isn't available, a normal government guarantee scheme can be allocated.
  • Placement must be finalized by June 30; the government portal closes for submissions at midnight.
  • After pre-approval, customers have 90 days to convert to a live application with a contract.
  • Loan docs are issued, and the government guarantee certificate is applied for.
  • Once the certificate is issued, there are 100 days to settle.
  • Customers without a placement before June 30 can apply under the new scheme.
  • The new scheme requires a notice of assessment in FY25.

HECS Debt Alternate Servicing

  • Unique strategy for customers with HECS/HELP debt.

  • Addresses the difference between 30-year home loans and shorter-term HECS debts.

  • Based on government, APRA, and ASIC's allowances for banks to set servicing rules.

  • Two methods:

    • Method 1: If the customer's income level is below the HECS debt threshold, excludes the HECS debt from servicing. For example, if you're a 100,000 a year as an income, the threshold is 5 and a half percent.
    • Method 2: For customers repaying HECS debt within 1-5 years, apply a 1% assessment rate buffer instead of the usual 3%.

  • Requires a MyGov statement to confirm the debt balance.

  • Method 2 can significantly boost borrowing capacity (e.g., an extra 150,000$$ or more).

  • To apply method 2, add 2% to your discount in the online servicing calculator.

  • For investment loans, reduce the end rate for negative gearing by 2% in the Excel servicing calculator.

  • Applies to government-guaranteed deals and refinance of an investment loan and you're doing a purchase of an owner occupied property

  • Does not apply to non-personal borrowers (companies or trusts) or bridging loans.

  • Cannot be used with the refinance exception policy (1% buffer).

  • Communicate the implications of the lower buffer to the customer.

  • Customers can reduce their HECS debt to become eligible.

  • If outside of the five-year repayment term, credit can condition the HECS debt to be reduced.

  • An updated MyGov statement is needed to proceed.

  • Common question: "Can I reduce my HECS debt down to be eligible?", the answer is yes.

  • A calculator on the HELP debt website shows which method customers are eligible for based on income and debt amount. Process page => Combroker.