Suncorp have this morning become the latest lender to issue lodoc changes which could eventually see the end of the lodoc market as we now it:
This update is due to the adjustment of the Low Doc lending criteria as follows:
1. The primary income earner must be self-employed.
2. No debt consolidations will be accepted.
3. Only allow refinances of prime loans from the four major banks (ANZ, Commonwealth Bank, NAB and Westpac) and other selected Australian Deposit-taking Institutions (St.George, Bank SA, BankWest, Bendigo Bank, Bank of QLD, HSBC, Citibank, Newcastle Permanent, Heritage Building Society, Credit Union Australia, The Rock, and Police and Nurses Credit Society). This change aims to limit any potential acquisition of sub-prime or no-documentation style lending.
4. Cash outs or loan advances where Suncorp cannot control funding will be limited to the lesser of 10% of the loan amount or $50k.5. The maximum loan amount and applicants’ total borrowings cannot exceed $1.5m (previously $3m). These changes will take effect 1 November 2008.
This update is due to the adjustment of the Low Doc lending criteria as follows:
1. The primary income earner must be self-employed.
2. No debt consolidations will be accepted.
3. Only allow refinances of prime loans from the four major banks (ANZ, Commonwealth Bank, NAB and Westpac) and other selected Australian Deposit-taking Institutions (St.George, Bank SA, BankWest, Bendigo Bank, Bank of QLD, HSBC, Citibank, Newcastle Permanent, Heritage Building Society, Credit Union Australia, The Rock, and Police and Nurses Credit Society). This change aims to limit any potential acquisition of sub-prime or no-documentation style lending.
4. Cash outs or loan advances where Suncorp cannot control funding will be limited to the lesser of 10% of the loan amount or $50k.5. The maximum loan amount and applicants’ total borrowings cannot exceed $1.5m (previously $3m). These changes will take effect 1 November 2008.
