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The non-major bank has announced changes to its living expense validation process, which include a reduction in the number of transaction statements required to support an application.
The Bank of Queensland (BOQ) has announced changes to its living expense validation policy for home loan applications in a bid to “simplify” the lending process for brokers and their clients.
The changes include reducing the number of transaction statements required to support a lodgement.
Effective for applications submitted from Monday (26 October), borrowers will only be required to provide one month’s worth of transaction statements, subject to the following conditions:
- the loan-to-value ratio (LVR) is equal to or less than 80 per cent;
- no lender’s mortgage insurance (LMI) is required; and
- no adverse credit history is stated by the customer.
The lender stressed that the reduction in statements required only applies to the validation of living expenses, with BOQ’s policy on income validation or settlement requirements for refinancing remaining unchanged.
The bank added that it still reserves the right to require an applicant to provide additional statements.
BOQ has also revealed that it has increased the validation threshold for large transactions from $1,000 to $5,000.
The non-major told brokers that the change would “minimise the number of transactions requiring validation, reasoning or investigation”.
[Related: Lender ramps up home lending scrutiny]
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