ANZ increases servicing rate for loans
ANZ has become the latest bank to increase its servicing rate for new loans, as lenders tighten their criteria on mortgage applications.
The lender raised its servicing rate in late March, advisers say. The bank has increased its minimum living expense rate, the advisers said. ANZ now requires uncommitted monthly income of at least $500 to pass servicing, one adviser noted.
In the past month, advisers have been told to check pre-approvals they have with ANZ, as they may need to be recalculated with the new servicing calculator.
ANZ’s new servicing requirements come as a range of lenders put the brakes on lending. Advisers say the Responsible Lending Code, scrutiny from the Reserve Bank, and pressure from the Australian Securities & Investments Commission on lenders across the Tasman are to blame for the tougher requirements.
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