Login
ISCOVER
A non-major bank has made changes to its minimum serviceability ratio and updated its commercial debt serviceability calculator.
Adelaide Bank has announced that it will increase its minimum serviceability ratio for loan applications with a loan-to-value ratio (LVR) over 90 per cent from this Thursday (16 May).
To continue reading the rest of this article, please log in.
Looking for more benefits? Become a Premium Member.
Create free account to get unlimited news articles and more!
Looking for more benefits? Become a Premium Member.
The bank has said that, for any application submitted from 16 May, the minimum serviceability ratio for applications above 90 per cent LVR (inclusive of Lenders Mortgage Insurance) will increase to 1.25.
Speaking of the change, Darren Kasehagen, Adelaide Bank’s head of third-party banking, told The Adviser: “We have made these adjustments to improve credit quality and balance the inflows of business that we are currently writing.
“We review our offering regularly to take into account a range of variables.”
Amanda James, Adelaide Bank’s head of broker distribution, added that Apply Online metrics will be updated “at a later date” and apologised for any inconvenience caused.
The bank is currently on a four-business-day service level for commencing full assessments of loans with all relevant documentation.
As well as updating its minimum serviceability ratio for high LVR loans, Adelaide Bank also announced that, effective from today (13 May), it has updated the HEM tables within its SmartSuite Commercial Debt Serviceability Calculator.
Ms James added that no further application submissions using the old version of the calculator will be accepted after the close of business on Friday (17 May).
[Related: Connective partners with Adelaide Bank on white labels]
