Aaron can you please elaborate further regarding the OFI loan statement?
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- Thread starter neK
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Aaron can you please elaborate further regarding the OFI loan statement?
CBA requires copies of the latest statements of other financial institutions loans that you have. So if you have a NAB home loan they want to see that as proof of the repayments/balance, even if it's not being refinanced.
Is this what you were referring to Aaron?
The extra documentation required.
What's required for NAB compared to CBA?
Edit - Aaron has already replied.
Can you confirm whats required for NAB compared to CBA.
Brady the CBA requires the most recent statement for every existing liability not with the CBA. This includes home loans, personal loans and credit cards. The CBA also wants to see OFI transaction accounts and evidence of how much rent the borrower pays (if it's ongoing after the loan settles).
The CBA is almost unique in these requirements. Very few other lenders require any of the aforementioned documents. Most (including NAB) only want 3-6 months statements for liabilities that are being refinanced.
It's not a big deal for someone who owns their own home or they do the majority of their banking with the CBA. For an investor with a large and diversified portfolio, it's a paperwork nightmare.
Then there's the way their privacy forms are layed out, especially when you consider trust or company loans. Loan offer documents are delivered in a manner that difficult to work with when compared to other lenders.
The CBA is probably the most paperwork intensive lender out there.
The CBA is almost unique in these requirements. Very few other lenders require any of the aforementioned documents. Most (including NAB) only want 3-6 months statements for liabilities that are being refinanced.
It's not a big deal for someone who owns their own home or they do the majority of their banking with the CBA. For an investor with a large and diversified portfolio, it's a paperwork nightmare.
Then there's the way their privacy forms are layed out, especially when you consider trust or company loans. Loan offer documents are delivered in a manner that difficult to work with when compared to other lenders.
The CBA is probably the most paperwork intensive lender out there.
You guy's aren't up to date with CBA current requirements.
This change came in 16/5/14.
Same time CBA changed from 2 payslips required to 1.
Fixed repayment commitments (including overseas loan commitments) must be verified where the loan balance is $10,000 or more. Examples of fixed repayment commitments are home loan/investment home loans, personal loans, equipment finance, business loans, store interest free finance held in Australia or overseas.
Verify fixed repayment commitments to one of the following:
Limit facilities (including overseas loan limits) must be verified where the greater of the loan balance or limit is $10,000 or more. Example of limit facilities are viridian lines of credit, overdrafts, credit cards, store cards, commercial credit cards, business lines of credit held in Australia or overseas.
Verify limit facilities to one of the following:
Any fixed repayment commitment NOT being refinanced One of the following covering the review period:
Rental and board commitments
Arrangement Verification documents required
Rental payments made to a real estate agent One of the following:
Rental or board paid to parents or related family member One of the following:
Rent free arrangement with parents i.e. applicant is living at home and not paying rent or board Letter from parents confirming that applicant resides in their property and does not pay any rent or board
This change came in 16/5/14.
Same time CBA changed from 2 payslips required to 1.
Fixed repayment commitments (including overseas loan commitments) must be verified where the loan balance is $10,000 or more. Examples of fixed repayment commitments are home loan/investment home loans, personal loans, equipment finance, business loans, store interest free finance held in Australia or overseas.
Verify fixed repayment commitments to one of the following:
- One month's transaction account statements
- One month's loan account statements
- Other records covering one month's period such as stamped repayment book, stamped bank deposit receipts or BPAY transfer confirmations
- Loan contract / schedule
Limit facilities (including overseas loan limits) must be verified where the greater of the loan balance or limit is $10,000 or more. Example of limit facilities are viridian lines of credit, overdrafts, credit cards, store cards, commercial credit cards, business lines of credit held in Australia or overseas.
Verify limit facilities to one of the following:
- One month's loan account statements
- Loan contract / schedule
Any fixed repayment commitment NOT being refinanced One of the following covering the review period:
- Transaction account statements showing the payments being made
- Loan account statements
- Other records such as stamped repayment book, stamped bank deposit receipts or BPAY transfer confirmations
Rental and board commitments
Arrangement Verification documents required
Rental payments made to a real estate agent One of the following:
- One month's transaction account statements
- Current lease agreement
- Statement or letter from the managing agent
- Other records covering one month's period such as stamped bank deposit receipts
Rental or board paid to parents or related family member One of the following:
- One month's transaction account statements
- Letter from parents or related family member
- Other records covering one month's period such as stamped bank deposit receipts
Rent free arrangement with parents i.e. applicant is living at home and not paying rent or board Letter from parents confirming that applicant resides in their property and does not pay any rent or board
That's pretty much what I just said and it's still way over the top compared to other lenders.
No it's not Pete.
You can have a 1month transactional statement along with most recent credit card statement which covers it all. Previously needed individual statements for each of these.
I've highlighted the documents that aren't required by other lenders.
I've found a transactional statement works when it's a simple deal and only a couple of liabilities are involved. When there's lots of other liabilities matching it up gets tricky it's far easier to just get a statement for each.
You've got to be kidding me. Most people now have online banking, especially active investors who speak reasonable amount of time on RE.com etc...
Takes 2mins to jump online to whatever online banking and get 1 month transactional statement. Even if you have 10 different accounts/banks still less than 30mins to prepare all required documents.
previously you were stating that needing statements for each, you don't. You only need a transactional statement for a whole 1 month. Now you're saying thats too hard and easier to go get statements for each.
Takes 2mins to jump online to whatever online banking and get 1 month transactional statement. Even if you have 10 different accounts/banks still less than 30mins to prepare all required documents.
previously you were stating that needing statements for each, you don't. You only need a transactional statement for a whole 1 month. Now you're saying thats too hard and easier to go get statements for each.
Could be Heritic Bank 
now thats a pile of paper
ta
rolf
now thats a pile of paperta
rolf
Going to have to agree with the other here Brady. CBA are by far the worst in terms of document requirements. Still my no 1 lender though.
It can be difficult to get the other banks statements from smaller lenders or if they are online only ie Nab isaver accounts or St George statements in general.
It can be difficult to get the other banks statements from smaller lenders or if they are online only ie Nab isaver accounts or St George statements in general.
From a responsible lending point of view my aggregator requires 3 months bank transaction statements and last debt statement to confirm limit payment etc. I spend a lot of thinking they are more pedantic than the banks. I do hold a CR under them but even their compliance serviceability calculator is way below most of the banks.
thats because, in my experience, brokers are held to a higher level of accountability.
if you think about it, thats a good thing for a number of reasons.
At least one of those is quite selfish.
if a banker ends up with an unconscionable conduct rap, they will likely lose their job.
A broker in a similar circumstance will likely lose their CR status or ACL.............
ta
rolf
That's a bs position you have been put in IMO. Is this connective by the way, I see their calculator come up in my software and think omg that is way too conservative? I am a full licensee and I have developed my own credit policy in writing and I follow it. Rest assured my opinions differ to the banks on a lot of things!! Servicing for investors is a big one. Why they want us to service investment debt like home loan debt I just cannot agree with. It's not the same thing.
What I'm finding a lot of is post settlement process and maintenance - with tidying things up post settlement and ongoing - this is where you get your bank bdm or broker saying how wonderful life is at "X" bank at doing the deal upfront but then post settlement when something needs fixing the bdm or broker says - not my job call the call centre. Then the call centre ideology and advice is different from what you are doing strategically for the clients.
My initial comment as to the case in hand is the choice of lender long term. CBA for me outshines NAB due to longer interest only period on debts with NAB at 5 years then full review, CBA its a phone call and job done. Rollovers to I/O with NAB can be frustrating as well. So cheap as in $5-20 a month vs time cost... and CBA is negotiating pretty well on rate too.
CBA Tech as far as netbank etc is also way advanced.
So if none of this matters then go nab, but if it may matter then I'd wait for nab to fix its boat up a bit more.
My initial comment as to the case in hand is the choice of lender long term. CBA for me outshines NAB due to longer interest only period on debts with NAB at 5 years then full review, CBA its a phone call and job done. Rollovers to I/O with NAB can be frustrating as well. So cheap as in $5-20 a month vs time cost... and CBA is negotiating pretty well on rate too.
CBA Tech as far as netbank etc is also way advanced.
So if none of this matters then go nab, but if it may matter then I'd wait for nab to fix its boat up a bit more.
