Bluestone Home Loans has made additional policy changes in response to broker feedback.
This was following recent announcements of policy changes implemented over September and early October to provide brokers more flexibility as they support borrowers in meeting the twin challenges of borrowing capacity and serviceability.
The following changes will apply to all new applications from Oct. 25:
- increase to default and judgement amounts allowed for non-prime products, with up to $2,000 or greater than 24 months ignored for Near Prime, up to $2,000 or greater than 12 months ignored for Specialist, and any amount or time frame can be considered for Specialist+
- more flexibility around the calculation of OFI mortgage stress repayments using the higher of broker entered rate of 2.5%, floor rate of 5.25%, and actual repayments of the loan (as per broker entered or loan statement if available)
- interest deductions are now considered for investment loans using the actual interest rate
- Specialist max loan amount increased to $2 million (including fees) for loans ≤ 60% LVR in Melbourne, Sydney, Brisbane, Adelaide, Canberra, Hobart, Perth, Gold Coast, Sunshine Coast, Geelong, and Wollongong, and more
- vacant land max loan amount increased to $1.5 million across two securities, up from the previously announced $750,000. Accepted as second security and can’t exceed 50% of the loan amount
