To help identify what the right product is for your client, we've created a comparison matrix for Connective Essentials and Connective Select.
Connective Essentials by Advantedge | Connective Select by Adelaide Bank | |
LVR | ||
Max LVRs - | · 95% Owner-Occupied (Purchases only) | · 95% Owner-Occupied (Purchases Only) |
· 90% Investment | · 95% Construction Owner Occupied | |
(LMI cannot be capitalised) | · 95% Vacant Land, Owner Occupied Variable Only | Note: >90% NSR 1.35 |
· 90% Construction | · 90% Investment | |
· 80% Interest Only | · 80% Interest Only | |
LMI in-house QBE – higher limits | · 80% Bridging (NSR 1.15) | |
Product | ||
Loan Term | 25 or 30 year Only | 5 – 30 years |
Pre-approvals | YES (not fully assessed) | YES (fully assessed) |
Bridging | NO | YES |
Common Debt Reducer | NO | NO (100% of debt and 100% of rental) |
Upfront Valuations All through Property Hub |
No valuation fees | Cover first $600 |
No limit on valuations | Second security is charged to the customer | |
Free Via NAB and Redi ATM networks | $0 Cost for Bendigo ATMs | |
ATMs | 90% Max. LVR – OO and Inv purpose (includes LMI) | 95% Max. LVR for OO |
Construction | · Only available on variable rate product | · 90% Max. LVR for IO repayments during construction period at P&I rates |
· $300 Construction Drawdown Fee | · No Owner Builders | |
· Construction period Interest Only at P&I rates | · Not available for builders or property developers | |
· No Owner Builders | · Construction must be completed within 12 months of initial draw down | |
· Construction must commence within 12 months | · No split contracts | |
· No split contracts, costs plus contract and any building contract beyond work completed e.g. Simple Works Contracts | · Bridging Construction – NSR 1.25 | |
· Variations must be part of building contract | · Valuations “As if” Complete | |
· Valuations “As if” Complete | · Up to 3 dwellings in 1 Title | |
· 1 dwelling per title | ||
Cash Out Policy | Evidence required if | Evidence required if > $100k (Guide) |
LVR exceeds 80% Or | ||
Loan amounts >$250k | ||
Mature Age Policy | No max age as long as 1 acceptable exit strategy is required (not super) | No max age - 1 acceptable exit strategy required (super not sole reason) Note: Likely to reduce term according to exit strategy |
Application fee | NIL | NIL |
Settlement fee | $395 | $250 |
Ongoing fee | NIL | NIL ($10 per month for each OffSet Account) |
Vacant land only | YES | NO |
Construction | YES | YES |
Off-set | NO | YES |
(Full Transactional Redraw) | 1 Offset Per Split (Max 5 Splits) | |
Commission | · 0.77% Upfront (incl. GST) | · 0.715% Upfront (incl. GST) |
· 0.165% Trail (incl. GST) | · 0.165% Trail (incl. GST) | |
Clawback: 100% 0 – 12 months | Clawback: 100% 0 – 12 months | |
50% 13 – 24 months | ||
Credit & Supporting Doc Requirements | ||
Credit Score | YES | YES |
DocuSign | YES | NO |
Supporting Documentation | · 3 months of transactional statements not required if 2 payslips provided – assessor can request at their discretion | · Require 3 months transactional statements for all applications |
· No statements for debts not being refinanced (require a mortgage balance) | · 1 month statements for debts not being refinanced | |
Acceptable Security | ||
$10 per Offset | ||
Acceptable Security | · Min 50 sqm (includes car space and/or balconies) | · Min 50 sqm (excluding car space and balcony |
Units / Flats / | · Separate certificate of title required | |
Apartments | ||
High density located security | · Max. LVR 70% as per postcode location tool | · Max. 70% LVR If > 5 Stories and/or 50 Units in the complex |
Rural Residential | · Must have mains power | · Must residential dwelling |
(or similar zoned properties) | · Max. 10 Hectares (25 acres) with completed dwelling | · Max 10 hectares (25 acres) greater size can be accepted at reduced LVR |
· Must not be income producing other than rental income from tenants | · Services connected | |
· > 10 Hectares but less than 50 hectares up to 70% considered | · Max. $500k up to 80% LVR | |
Max units on title | · 2-3 Units Need to show plan/draft to sub-divide in future | · Up 10 units for established dwellings in 1 title. |
· Max. LVR 65% | ||
Acceptable Income | ||
Genuine Savings | · Required >90.01% LVR | · Required >80% LVR |
(Evidenced 3 months) | (Evidenced 3 months) | |
· Non-residents accepted when joint applicants with AU Resident | ||
Accepted rental history for genuine saving | Accepted rental history for genuine saving | |
Foreign Income / Overseas | X | · Exclude overseas liabilities and income if positively geared – confirm country |
· Accept some overseas pensions at 80% | ||
· Min. 2 years trading in the current business | · Min. 2 years trading in the current business | |
Income Types | · Use average of 2 years | · Use most recent income unless it has increased more than 20% - Use average |
Self-employed | ||
PAYG | · No min. employment term for full/part-time employment | · Min. 6 months in current employment |
· Probation period acceptable | Or | |
· Employed 12 months in the same field/industry | ||
· If Probation min. 2 years in the same industry | ||
· Min. 6 months with current employer | · Min. 12 months with current employer | |
Casual | · 100% Average last 6 months annualised | Or |
· 2 years same industry | ||
· YTD Annualised 48 weeks | ||
Commission / Bonus | · 70% if confirmed | · Must be received from same employer for the past 2 years |
· Min. 6 months | · 80% of the lesser of last 2 years | |
· Must be from the same employer | · Does not need to be condition of employment | |
· Must not be on probation | ||
Bonus | ||
· 2 years received from same employer | ||
· Use the average bonus payment received; or the most recent financial year if the bonus payment was lower | ||
Over-Time/Allowances | · Received min. 6 months | · Received min. 12 months with the same employer |
· Use 70% (100% Essential Services) | · Use 80% (100% Essential Services) | |
Allowances | ||
Allowances | · Use 100% (must be permanent and ongoing) | |
· 100% if demonstrated over 2 consecutive payslips variance <20%) | ||
Servicing | · $500 Notional Rent per household | · $650 notional rent per household (spousal) |
· Joint Debts - 100% debts and 100% rental | ||
· 3rd Party directors not required to be guarantors (individual borrower) | ||
· Exclude company liabilities if expensed in financials |
Comments
0 comments
Please sign in to leave a comment.