ASB using debt-to-income ratios
The bank, and its AIA/Sovereign Home Loans brand, are testing customers on DTI ratios and will not lend to borrowers above 6x in many cases, advisers said.
The secondary test, alongside its traditional debt servicing calculator, has made it difficult for clients and advisers in recent weeks. The changes have been in force since September.
Advisers have told TMM Online that ASB is drawing the line at 6x income, but occasionally stretches to 7x.
The lender is believed to be calculating scaled income, counting 75% of borrowers' rental income alongside other income.
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