In this article:
Under Essentials Resi only needs to see your client’s daily transaction statements if the declared living expenses are under HEM and/ or it is an Alt Doc or Near Prime deal with an NSR under 1.25.
You can use Resi’s serviceability calculator as a guide, as it will display a message if statements are required.
Some further tips:
- If income is under-declared, the HEM benchmark is artificially reduced. Please allow for a higher living expense amount if not all of the client’s income is being used in servicing
- If your client is purchasing a property, please remember to include the additional expenses in your assessment
- If certain categories have no figure entered, credit may ask for an explanation around this (ie. If parents have school-aged children but no school fees)
- Any child support, rent or board expenses should be added to ‘Ongoing Commitments’ instead of living expenses
- Credit can’t unsee statements, so first make sure we really need them and secondly, make sure you’ve reviewed them thoroughly so there won’t be any surprises
As always, credit may ask for additional information.
To access the Product & Policy Quick Reference Guide, click here.
For more information, please see our website, alternatively please contact broker support or your BDM.