They may be the 1st but I'm assuming they won't be the last to tighten policy. This just from ANZ who seem to be the pioneers in revising policies in recent times.
In response to the continuing softening in the economic environment, effective Monday, 20th April 2009, ANZ will be making changes relating to serviceability criteria.
These changes reflect ANZ’s prudent and measured response to the current economic environment and ensures the bank and our customers are well positioned for any weakening in the economy throughout 2009.
It also reflects a need for customers to state what their living expenses are, rather than just using the default rates which may not adequately reflect their circumstances. Your support in obtaining this information is important to help customers help themselves as conditions tighten.
For all loans repayments, ANZ and OFI, a sensitivity margin of 2.25% will be applied to the standard variable rate (SVR). Note: Equity Manager & Simplicity Plus accounts assess on the actual rate plus the new 2.25% sensitivity margin.
As you are aware interest rates are at an all time low and as prudent lenders we need to ensure that we position our customers for any changes to the rate over the life of their loan.
Also effective Monday, 20th April will be increases to living expenses for single and joint applications and also for any dependants.
Old New
Couple $1,380 $1,612
Single $ 950 $1,105
Child $ 340 $ 394
Please note that these are to be used as minimal benchmarks only.
As a result you are all encouraged to spend time understanding your customers living expenses. As a guide, we have provided a list of common expense items you can discuss with your clients:
Basic living costs
Food
Clothing
Rates (council / water)
Utilities (telephone / electricity / gas)
Motor vehicle
Personal entertainment
Education (public)
Home Insurance
Additional expense items:
Child maintenance
Private Education
Insurance (Medical / Contents / Life & Income Protection)
In response to the continuing softening in the economic environment, effective Monday, 20th April 2009, ANZ will be making changes relating to serviceability criteria.
These changes reflect ANZ’s prudent and measured response to the current economic environment and ensures the bank and our customers are well positioned for any weakening in the economy throughout 2009.
It also reflects a need for customers to state what their living expenses are, rather than just using the default rates which may not adequately reflect their circumstances. Your support in obtaining this information is important to help customers help themselves as conditions tighten.
For all loans repayments, ANZ and OFI, a sensitivity margin of 2.25% will be applied to the standard variable rate (SVR). Note: Equity Manager & Simplicity Plus accounts assess on the actual rate plus the new 2.25% sensitivity margin.
As you are aware interest rates are at an all time low and as prudent lenders we need to ensure that we position our customers for any changes to the rate over the life of their loan.
Also effective Monday, 20th April will be increases to living expenses for single and joint applications and also for any dependants.
Old New
Couple $1,380 $1,612
Single $ 950 $1,105
Child $ 340 $ 394
Please note that these are to be used as minimal benchmarks only.
As a result you are all encouraged to spend time understanding your customers living expenses. As a guide, we have provided a list of common expense items you can discuss with your clients:
Basic living costs
Food
Clothing
Rates (council / water)
Utilities (telephone / electricity / gas)
Motor vehicle
Personal entertainment
Education (public)
Home Insurance
Additional expense items:
Child maintenance
Private Education
Insurance (Medical / Contents / Life & Income Protection)
