Virgin Money Broker Lending Guide
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1
Virgin Money Broker Lending Guide
May 2020
Important Information Information in this guide was prepared by Virgin Money (Australia) Pty Limited ABN 75 103 478 prospective borrowers or third parties without the prior written consent of Virgin Money Australia. Virgin Money (Australia) Pty Limited ABN 75 103 478 897 promotes and distributes the home loans as the authorised credit representative of the credit provider, Bank of Queensland Limited Policy and does not purport to be a complete statement of Summary of that policy. It must not credit Assessment Criteria. Whilst Virgin Money has taken due care in preparing this Guide no warranty is given in relation to the accuracy of this document and neither it, nor any of its related bodies corporate, nor employees, directors or other persons associated with these entities accept liability for any acts or omissions in reliance on this guide. 2
Who are we?
You probably know the Virgin brand trusted globally
and well-known for shaking things up and providing
real alternatives when we think people deserve a fairer
go.
At the heart of our value proposition is:
• Placing our people, partners and customers first
• Rewarding genuine loyalty
• Being transparent
passionate about helping people realise bigger
possibilities through the delivery of beautifully simple
and rewarding financial products, all backed by Virgin
We focus on providing a rewarding proposition and
great customer experience.
Our home loans are supported by dedicated Virgin
Money broker and customer support teams.
3
Key Features
Weekly, fortnightly and monthly P&I repayments
Repayment Monthly interest only repayments
Types 1-5 year interest only terms available
10 year interest only term available for investors
Home Loan Companion Account
Interest
100% offset capability on all variable rate loans
Offset
100% offset also available on 1 year fixed rate term loans
1-5 year fixed rate terms
Up to $10k per annum in additional repayments during
Fixed fixed rate term accepted
Rates Loans up to 90% LVR revert to a discounted variable rate
on expiry based on loan amount and LVR at loan
approval.
Free redraw (minimum amount $100) for variable loans
only
Accessibility
Online and mobile access to your home loan and
companion account via our Virgin Money Hub.
Refer to virginmoney.com.au/partners for full information and offer terms & conditions
4
Reward Me Home Loan Key Fees
Fee Type Amount
$300 charged once per application at settlement, regardless
Application Fee
of the number of loans within that application.
Monthly Fee $10 per loan account (split) per month
Settlement Fee $150
First Valuation Fee $0
Additional Valuation Fee/s
Quoted on application
(per additional security)
Additional Security Fee $150 per additional security
Document Variation Fee $200 when change initiated by client
Rate Lock Fee 0.15% of Loan Amount
$250
Construction Loan Fee
(covers 4 drawings)
For further information on applicable fees and charges refer to the product key fact
sheet available at www.virginmoney.com.au/partners
5 Refer to virginmoney.com.au/partners for full information and offer terms & conditionsApplications
Eligible Borrowers & Guarantors Ineligible Borrowers
- Individuals aged 18 or over (all individuals - Strata Corporations
must be either an Australian citizen or a
- Company or Trust entities
permanent resident living and working in
Australia) - Non-residents
- Individuals who are PAYG employees - Any individual considered unacceptable
under the prohibited and restricted
- Self employed individuals
industry appendix as defined by VMA
- Joint applicants where all debtors will
- Applicants solely reliant on a government
receive a benefit
pension or benefit Or reliant on non-
- Temporary Residents (eligibility requirements Australian income.
apply)
Loan Interviews Validity Period for Approvals
- Brokers must conduct a face to face loan 90 - Approvals remain valid for 90 days from
interview with all borrowers and date of approval
guarantors
- A new application will be required after
- Brokers must meet our Customer the 90 day approval period
Identification requirements
- Retain on file all original documents
provided or signed by the borrowers
Guarantees All guarantees taken from personal customers must be limited to a specific amount, relating to
the approved debt. Where the borrower and the security provider are not identical, a Guarantee is required
from each security provider. All guarantors must obtain independent legal advice, and are recommended to
always obtain Independent Financial Advice.
For detailed information on documentation requirements refer
6 to the Virgin Money Broker Lending GuideLending Parameters
Purchase, Refinance, Construction or Debt Consolidation & Equity Release (Cash Out)
Loan Purpose Purposes involving cryptocurrency or refinance of small loan provider debts are
unacceptable.
Minimum $75,000 / No Maximum without LMI or up to $3M subject to LMI approval
Minimum Loan Split Amount $25,000
Loan Amounts Maximum total loan amount of $2.5M for interest only loans (total aggregate borrowings
on IO products).
Note: for Interest only lending the
fully detailed in application notes.
Above 90% LVR Genuine Savings is generally required.
Non-Gen savings can be considered if applications meet certain criteria:
Genuine Savings Must be an owner occupied purchase
Repayments must be on a P&I basis
Security must be under 2.2 hectares
Term Maximum 30 years
Cross Collateralisation is at the discretion of Virgin Money Retail Credit and will be
Cross
implemented in those instances where it is deemed appropriate in supporting the lending
Collateralisation transaction.
Important: Guide only -
7Lending Parameters (Continued)
Owner Occupied Investment
98% including LMI for purchases, and construction 80% maximum no LMI (criteria
loans with genuine savings. applies)
Note: Location restrictions apply
90% maximum LVR inclusive of
90% + LMI capitalisation for purchase, refinance, capitalisation (criteria applies)
purchase of vacant land, and construction loans with
non-genuine savings. Note: Location restrictions
apply. Note: Maximum LVR for all Investment
Maximum loans is 90%.
LVR Maximum LVR for interest only loans 80% inclusive
of LMI.
Note: LVR > 80% all Owner Occupied loans to be P&I
All lending:
• Where LVR is > 90% the NMS (Net Monthly Surplus) required is $200
• All housing loans above base LVR 90% must be secured by properties located in Metro Plus,
and category 1 locations. Refer VMA Security Location Guide.
Important: Guide only -
8Overview over Key Security Types & Parameters
Valuations required on all security properties (AVM, Desktops or Full Valuations depending on
Valuations security type and exposure)
• Standard minimum unit size 50sqm floor (excluding car space, and balconies)
Minimum Unit Size • 40-50sqm floor may be considered if located in VMA Security Location Guide, and be self
contained.
• For 2-3 units VMA Security Location Guide, Category 1 and 2 locations only.
2 to 6 established • For 4-6 units VMA Security Location Guide , Category 1 locations only.
units in one complex • For 2-3 units, lower of 80% LVR or max LVR as stated in the policy. For 4-6 units, LVR is 65%.
• Maximum of 6 units in one complex (strata title) or 6 units on one title (non strata title)
VMA Security Location Guide Categories 1, 2 & 3: VMA Security Location Guide All other
• Max size 100 acres Categories:
Rural Zoned • LMI required above 80% (property value to • LMI required above 70% (property value to
Properties $750K) or 70% (properties valued > $750K) $750K) or 60% (properties valued > $750K)
• Primary purpose is for use as a residence by
owner or tenant
High Density • Units classed as high density as defined in the VMA Security Location Guide
Units • LMI required above 80% LVR
Virgin Money currently does not accept the following types of security:
• Studio Apartments • Dual Key Apartments
• Student Accommodation • Partially Constructed Dwellings
• Commercial / Industrial zoned • Mobile / Temporary Homes
Unacceptable • Company Title • Any property within 50 metres of a high
Security Types • Serviced Apartments voltage power lines, tower or electrical
• Term Deposits substation.
• Purple title (WA) Moiety title (SA) • Any property that is used primarily for
• Any property zoned/classified as primary business purposes.
production. • Other criteria applies.
For detailed information on documentation requirements refer
9 to the Virgin Money Broker Lending GuideGuarantee Lending
• Available for owner occupied purchases and investment purchases
• Refinancing of existing facilities with spousal guarantor security is subject to review &
Mandatory for all assessment by credit
Guarantees • Limited to a specific dollar value
• Independent legal advise must be sought
• All guarantors are recommended to always obtain Independent Financial Advice.
Spousal • Guarantor income available for servicing where guarantor is the spouse/partner of
Guarantee the borrower
• Full verification of income in line with validation policy
• Security Guarantee only
• Guarantor must be an immediate family member
• Application to be lodged as two separate loans:
1. Customers names utilising the property being purchased as sole
security
Family Guarantee 2. Customers & Guarantor utilising the purchase property & guarantor
security with guarantee limited to loan amount of second application.
• Servicing - Applicants to demonstrate serving on total debt
Guarantors to demonstrate servicing on limited guarantee amount plus
their existing commitments
• First mortgage only no second mortgages
• $10 per month per application
Costs • Additional Val fee & Security fee on second application
For detailed information on Lending Parameters refer
10 to the Virgin Money Broker Lending GuideConstruction Loans
• Construction of residential property
• Purchase vacant land & construction of residential property (house & land package)
Loan Purpose
• Property Improvements (including renovations)
• Contracted Licensed builders only
• Maximum 98% including LMI capitalisation, Owner Occupied
• Maximum 90% LVR inclusive of LMI where non-genuine savings exist, Investment
Maximum LVR
• Vacant Land 90% LVR inclusive of LMI
Note: Other lending criteria and maximum LVR criteria applies, refer to slide 7 & 8 above.
• Fixed Price Builders Contract (signed & dated) - the schedule of payments in the contract must
be in accordance with relevant state/territory laws and under standard contract terms by the
Housing Industry Association or Master Builders Association
• Copy of council approved plans and building specifications
Documentation • Copy of the builders registration./certification documentation
• Copy of the builders Insurance policy with
constructed
• Quotes of any work not included in the builders fixed price contract but may be needed for the
valuation e.g. Landscaping
Valuations are required at the following stages:
1. At initial stage prior to commencement of construction to confirm land value and construction
costings as if complete valuation
Valuations 2. At practical completion (Final Inspection Report) prior to the final loan drawdown
3. Progress Inspection Reports will be required for:
• Construction of Multiple Dwellings or;
• A single residence where the total construction cost exceeds $1M
• First drawdown must occur within six month from disclosure date.
• Progress payments to be in line with State/Territory laws up to a maximum of 75% of the
Progress
contract paid up to lock-up stage (80% in WA)
Payments • Borrowers contribution to be fully used before the first progress payment
• Final drawing must be within 18 months.
Important: Guide only -
11
full credit assessment criteria.Self Employed Lending
Applicants Individual borrowers only (no trust/company borrowers)
Self-Employed
Minimum 2 years self-employed
Term
Self-employed income:
• Individual - last 2 years personal & business tax returns and Tax Assessment Notices, no more
than 18 months old
• Non Individual entities (including Partnerships) - last 2 years personal & business tax returns and
accountant prepared Profit & Loss and financial statements.
Income Validation
• Tax status confirmed by Tax Portals and Integrated Client Account Portal for each self -
employed borrower and guarantor.
• Must be registered for GST
Note: Applicants with Self-Employed and PAYG Income to provide Accountant confirmation to
confirm self-employed entity trading and tax liabilities status.
Servicing is based on the lower of:
Servicing • Average net profit of last two years tax returns; or
• Net profit from the most recent tax return
Confirm the taxation status of the self-employed borrowers (personal and business) by either:
• A written confirmation from the self-
individual borrower names and/or entity names, taxation year, and status; or
• A copy of the business Income Tax Lodgement Status Portal and the Integrated Client Account
Portal; Income Tax Account Portal (companies only); or
Validating Tax • An Australian Tax Office receipt confirming the payment of an outstanding ATO notice .
Status
Note:
- Where taxation payments are in arrears, application must be referred to your BDM for full review
and assessment.
- Tax Assessment Notice / Notice of Assessment (NOA) must be no more than 18 months old.
Important: Guide only -
12
full credit assessment criteria.Add backs for serviceability
Only expenses which fall within the below categories are considered an allowable
add back for serviceability purposes:
• Directors superannuation for amounts paid above the current legislative
requirement (refer Serviceability Worksheet Guide)
• Depreciation of assets
• Interest expense
Note: where interest expense is added back, there must be a corresponding liability included in the
application, and addressed in the calculation of debt servicing; or If the liability relating to the interest
confirmation held from the financier or the applicants accountant, that the debt is fully repaid or limit
closed.
• Finance lease expense
Note: where a lease expense is added back, the lease commitment must be included for the calculation of
debt servicing)
• Extraordinary expenses;
Note: explanation comments to be provided.
13
For further information download the serviceability calculator guide or contact your BDMUnacceptable Add backs for serviceability
Unacceptable add backs can include, but not limited to the following:
• Donations;
• Advertising expenses;
• Capital Losses;
• Bad and doubtful debts;
• Legal expenses;
• Start-up costs;
• Stock replacement or stock write offs;
• Business motor vehicle expenses;
• Club subscriptions / memberships;
14
For further information download the serviceability calculator guide or contact your BDM15
Income and EmploymentAcceptable Primary Income Sources
Full time or permanent part time
• 100% of gross income.
2nd Part time
• 80% of a 2nd part-time position with a minimum of 6 months continuous service with the same
employer.
Casual
• 80% of gross income with a minimum of 6 months continuous service with the same employer.
PAYG Contractors
PAYG Salary and • 100% of gross income is to be used when calculating serviceability
Wages (full time, Note: Independent contractors are to be treated as self employed borrowers.
part time, casual
or contract) PAYG income validation
• The most recent payslip being no older than 45 days prior to the application date
• Where bank statements are used to validate PAYG income, the latest statement cannot be older
than 45 days prior to the application date
Note: Applicants with Self-Employed and PAYG Income to provide Accountant confirmation to
confirm self-employed entity trading and tax liabilities status.
Professional Sports persons & Persons employed in the entertainment industry
• A complete copy of the executed employment contract; and
• Most recent Personal Tax Return or TAN, and
• Most recent payslip (no older than 45 days old from application date).
NOTE: Use the lower amount validated for serviceability.
Important: Guide only -
16Acceptable Primary Income Sources
• 80% of gross rental income as validated for standard residential investment property.
• 70% of gross income for all other investment property types. E.g. Commercial, All High Density,
Rental Income
Mining Town, Car Space, and Student Accommodation.
• 100% of the nominated net rental figure for DHA Leaseback property.
Important: Guide only -
17Additional Sources of Income
80% if the payment is a regular and ongoing condition
100% (essential service industry only)
Overtime, Shift Note: Essential Services industry being Ambulance, Police, Fire Service, Medical
allowance and Doctors, Medical Nursing, Defence, Corrective Services, Government Transport
Penalties Service (trains, bus, watercraft), and major commercial aviation employees (major
domestic* and international airline staff only).
* Major 4 domestic passenger airlines are Qantas, Virgin Australia, Jetstar, Tiger
Airways only. Excludes any regional, private or charter airlines, or such services.
Commission 80%
Permanent
Government Pensions
100% of payments
(i.e. Veteran Affairs,
Disability or Old Age
Note: Single parent payments are not ongoing hence are not acceptable
Pension)
Family Allowance
(Family Tax Benefit 100% of payments where the child is less than 11 years old
Part A and Part B)
Child Support 100% where the child is less than 13 years old
Important: Guide only -
18
discretion and full credit assessment criteria.Additional Sources of Income
Car Allowance 100% of car allowance
50% of site allowance, subject to:
Site Allowance - and
- has been earned over a minimum of two years consecutively.
Investment Income
(Interest or 80% of gross income from the lower of the last 2 years tax returns
dividends)
80% of the lowest bonus income earned in the last two years
Bonus Income Note: It must be confirmed as a permanent ongoing condition of their employment and have
been earned over a minimum of two years consecutively.
100% of Maternity Leave Payment up to 80% LVR, (Employer paid or Government paid
Maternity Leave
working parent payment) subject to no payment gap more than 60 days from end of
payment and resumption of employment income
The borrower on probation is allowable if:
Probation is with the same company that the applicant has been continuously engaged
Probationary
with for a minimum of 12 months; or
Employment
Their prior employment in the same occupation is greater than 2 years and no more than 4
months break in employment. Prior employment will be confirmed by phone
Important: Guide only -
19
discretion and full credit assessment criteria.Validating Income
Validating Income - Documentation Requirements
Either of the following documents must be obtained:
The 2 most recent electronically issued or paper payslips, which must be verified. The most
recent payslip being no older than 45 days prior to the application date.
For PAYG Borrowers 3 consecutive months bank account statements prior to application date showing regular
salary credits, with the name of the employer evident. If salary credits are not for the same
amount, the average amount of these credits should be used for serviceability calculation.
The latest bank statements cannot be older than 45 days prior to the application date.
Obtain both of the following:
The two most recent electronically issued or paper payslips (the most recent payslip being no
older than 45 days prior to the application date); and
PAYG Contractors Prior year Tax return or PAYG Summary confirming income is in line with current income and
industry.
Note: Where income utilised is > 20% higher than prior year tax return refer request to risk
assessment.
Obtain either the:
and either:
1. If more than 4 months of the financial year (1st November onwards), obtain the two
For Overtime, Shift most recent payslips showing overtime, with the average monthly income to be taken
Allowance or from the total YTD overtime OR
Penalties 2. If less than 4 months of the financial year has occurred (i.e. prior to 1st November),
obtain both: the two most recent payslips showing overtime, AND written evidence of
the overtime paid in the prior financial year, by obtaining either
- a letter from the employer; or
- the last payslip for the prior financial year with the average monthly income to be
taken from the total YTD overtime.
Important: Guide only -
20
full credit assessment criteria.Validating Income - Documentation Requirements (Continued)
Obtain either the:
Letter from employer / employment contract, AND
For Commission
Written evidence of the commission received over the 6 months prior to the application date and
then annualised. Acceptable documents are either a letter from employer, or a payslip showing
commissions earned over the 6 month period.
For Self Funded Net income as confirmed by last two annual funds statement (if confirmed as non taxable) or the
Retirees last 2 years tax returns.
Superannuation and/or investment statements showing current balance.
Where the borrower is employed by family or through a family owned or controlled business,
Family Employment letters of employment or payslips must be supported by minimum last two pay deposits shown in
bank statements.
Valid Signed and dated confirmation letter from the employer containing employer name; and
For Maternity Leave
employee name, salary amount and proposed return to
Payment
work date.
For Self Managed Last 2 years tax returns with the most recent being no more than 18 months old; and
Super Fund Retirees Superannuation and/or investment statements showing the current balance
Statement of benefits (not more than 3 months old) issued by CentreLink; or
For Government
the Department of Veterans Affairs; or
Pensions
3 months current bank statements confirming receipt of CentreLink payments.
CentreLink Statement of benefits (not more than 3 months old) must be provided by the customer;
For Family Allowance
or
(Family Tax Benefit
3 months current bank statements confirming receipt of CentreLink payments.
Part A & Part B)
Note: Rent Assistance that forms part of the Family Tax Benefit Part A is unacceptable income.
For Child Support A copy of the Maintenance Agreement registered with the child support agency; and
Payment the 3 most recent months current bank account statements showing regular credits
Important: Guide only -
21
full credit assessment criteria.Validating Income - Documentation Requirements (Continued)
For investment
The 2 most recent tax returns no more than 18 months old; and
Income (Interest or
A copy of current account statement or share certificate or CHESS statement.
dividends)
Copy of letter of entitlement from employer or employment contract; and
Bonus Income Letter from employer detailing the bonus amounts received over the past two years, supported by
either a tax return, PAYG Income Statement, payslip, or bank statement credit entry.
Any one of the following:
Tax return confirming the previous 12 months rental income; or
Letter from Managing Agent outlining the expected annual rental income (for properties being
purchased only).
NOTE: Serviced Apartments are unacceptable security for Virgin Money.
Serviced
Apartments/Holiday all of the following:
Rentals the most recent lodged tax return (confirming the previous 12 months rental income) and
the most recent Tax Assessment Notice; and
the most recent airbnb statement showing receipt of rental within the last 120 days.
Note: The acceptable age of required documentation is in relation to the date of the application. Refer to slide 8 for the required
PAYG income document age.
Important: Guide only -
22
full credit assessment criteria.Validating Income - Documentation Requirements (Continued)
For properties being purchased:
For existing rental tenancy, obtain either the:
- Signed current lease agreement; or
- Latest monthly real estate agents tax statement; or rental statements issued by the managing agent
within 90 days; or
-Contract of Sale, where current tenancy details (rent, lease terms, and tenants) are stated.
For non-tenanted property, obtain either the:
- Panel Valuer estimated rental income; or
-
amount).
For properties already owned by the borrower, any one of the following:
Signed current lease agreement; or
Latest monthly Real Estate Agents Tax statement; or
Rental statements issued by the managing agent within 90 days; or
For Rental Income
Note: If any of the above is not available use the most recent personal tax return.
For properties converting from owner occupied to investment, any of the following is acceptable to
confirm proposed rent:
Copy of the recent valuation if undertaken
Copy of proposed lease agreement
A letter from a local agent confirming expected rental income.
Note: If multiple sources of evidence are available, the lowest rental amount must be used in all cases.
For Defence Housing Australia (DHA) lease, a copy of either document providing it is no more than
one year old:
A copy of the DHA lease agreement
The most recent written rental confirmation from DHA
Important: Guide only -
23
full credit assessment criteria.Payslip Validation
PAYSLIPS MUST NOT BE HANDWRITTEN & CONTAIN AS A MINIMUM:
1. Borrower
Name 2. Employer
Name
3. Employer
ABN
(except for
4. YTD income
Government
figure
Bodies)
Important: Guide only -
24
full credit assessment criteria.Unacceptable Income
Any form of income not listed in the above sections is considered unacceptable.
Examples of income sources that fall into this category are:
Seasonal income
Entertainment and travel allowances (including any meals, accommodation, offsite, or
other such allowances)
Non-permanent allowances (e.g. Higher Duties)
Income from boarders (e.g. owner occupied property)
New start or unemployment benefits, workers compensation, sickness benefits
Any other government benefits or pensions that are not of a permanent nature i.e.
Unacceptable Income single parent payments childcare benefits, or carers payments
Income of a Non-Recurring nature
Cash payments
Leave loading
Rent Assistance
Casuals with less than 6 months employment
Income from cryptocurrency sources
Use of any endorsement or sponsorship income
Important: Guide only -
25
full credit assessment criteria.26
DocumentationSupporting Documentation Requirements Key Points
• Provide detailed application notes. Include details of loan & security structure and exist
strategies (two unrelated exit strategies) where any applicant is 50 years or older.
Mandatory
• Verification of living expenses.
Requirement • The latest loan statement for all continuing loans, personal loans or debt and lease/hire
purchase.
Contract of Sale:
• Fully executed COS (all states)
• Include all annexures to the contract that comprise special conditions and/or additional clauses.
• NSW purchases require a copy of the contract executed by the seller, nothing that the seller holds the
copy signed by the buyer.
Purchases Funds to complete:
• Savings held in applicants name
• Statutory Declaration where gift obtained confirming it is non refundable
5% Genuine Savings (LMI loans):
• Must be held in al least one borrower name and for a minimum of 3 months., e.g. savings, property,
Shares.
Home Loans & Personal Loans:
• Most recent 6 months consecutive statements
Refinances / Debt Credit Cards:
Consolidation • Most recent 3 months consecutive statements
Note: statements can be no older than 3 consecutive months at the date of application
• Personal useDocumentation Requirements
Validating Savings, Account Conduct and Expenses
Valid Account Statements.
Account statements are used for a variety of validation purposes, including validation of identity,
account conduct, savings history, income, living expenses, and employment.
Account statements must be either original documentation issued directly by the financial
institution or online digital providers. Electronically issued documents obtained via internet
banking, or internet transaction listing and acceptable as detailed below:
Account statements or electronically issued statements are acceptable if they satisfy all the
following requirements:
Display the logo of the bank or other financial institution;
Display the Borrowers name, full BSB and account number; and
Individual transactions are itemised and there is a running account balance.
Valid Account
Internet Transaction listings are acceptable if:
Statements
Requirements Either:
-
- Individual transactions are itemised and there is a running account balance.
Or,
1. Obtain bank account statement(s) dated within the last 12 months prior to the application date;
2. Match the account number on any internet transaction listing to the bank account statement/s
provided; and
3. Individual transactions are itemised and there is a running account balance
Or
1. Obtain 'Proof Of Account Balance Letter' from other Bank, showing logo and account details;
2. Match the account number and account name, on the internet transaction listings to the
account details on the 'Proof Of Account Balance Letter'; and
3. Individual transactions on the transaction listings are itemised and there is a running account
balance.
Important: Guide only -
28
full credit assessment criteria.Documentation Requirements
Validating Savings, Account Conduct and Expenses (Continued)
PAYG applicants with no adverse credit only, if application LVRDocumentation Requirements
Validating Savings, Account Conduct and Expenses (Continued)
5% genuine equity if mortgage insurance is required;
The equity must be held in the name of at least 1 borrower for a minimum 3 months and can
include:
Funds held in a Bank Account or Term Deposit;
Equity in residential property owned or
Genuine Savings Shares held or
Funds held in the Federal Government First Home Saver (FHSS) scheme
be accepted subject to lending criteria.
Note: Rental Payment History cannot be utilised as the sole source of genuine savings .
Where the customer cannot demonstrate genuine savings, such applications may be considered
if the customer has non-genuine savings and the following is met:
The loan purpose must be for the purchase of a house or unit for owner occupation only;
Non-Genuine The security property cannot exceed 2.2ha in area; and
Savings Repayments must be on a principal and interest basis, with no interest only terms available.
The non-genuine savings contribution may consist of:
Gifts, Inheritance, sale of assets, tax refund (Validation must be provided)
NB: Borrowers must hold sufficient funds to cover all relevant government fees, duties and charges. The use of borrowed
funds from credit providers to pay relevant fees, duties and charges is not acceptable
Important: Guide only -
30
full credit assessment criteria.Documentation Requirements
Validating Purchases and Funds to Complete
A fully executed and signed copy of the contract of sale must be obtained.
Contracts for
Note: For NSW a copy of the purchaser's signed contract must be obtained, together with a
Purchase
copy of the fully executed front page from the vendor's contract and all annexures to the
contract that comprise special conditions and/or additional clauses.
The details recorded on both copies must be identical.
Where the borrower is providing funds to complete a property purchase (in addition to the
Bank's lending), the source of these funds must be validated.
Funds to Complete The validation requirement is only where the customer contributes an amount above $5,000 to
Property Purchases the total purchase.
Note: If the borrower has already paid a deposit for a property purchase prior to the lending
application, the source of this does not need to be validated.
For external refinances that require LMI and where the LVR is >80% a current rates notice must
be provided together with confirmation of rates being paid up to date.
External Refinances
Confirmation is via, receipt, bank or credit card statement, or letter from the local government
authority.
Important: Guide only -
31
full credit assessment criteria.Documentation Requirements
Verifying Other Commitments
Type of Commitments Validation Method
Obtain either of the following:
the latest mortgage statement or
Continuing mortgage, written confirmation no older than 45 days prior to application date from the external
investment loan or institution showing regular payment or
personal loan with external the most recent 3 months savings account statements showing regular mortgage
institution payments (no older than 90 days)
Must meet the Valid Account Statements requirements.
Obtain either of the following:
Signed current lease agreement, or
Latest monthly Real Estate Agents Tax statement; or
Rent
Rental statements issued by the managing agent within 90 days;
The last 3 consecutive months bank statements showing regular rental credits with the
name of the agent evident; or
Court Order document or letter from Child Support Agency
Child Support
Accept amount advised by customers
Board
Obtain either of the following:
HECS/HELP Last two most recent payslips; or
Latest Tax Assessment Notice. Or
Tax Agent Portal - Client Account List
Important: Guide only -
32
full credit assessment criteria.Documentation Requirements
Verifying Other Commitments
Type of Commitments Validation Method
Confirmation letter/invoice or confirm against the bank statements
Leases/Asset Finance:
Obtain either of the following:
Copy of current lease agreement; or
Other significant Written confirmation via a statement, letter, or amortisation schedule issued by the
commitments advised by Accountant/Lease/Financer provider in the last 45 days confirming repayments; or
customer Confirm against the last 45 day bank transaction statements.
Novated Leases:
Obtain either of the following:
A copy of the novated lease agreement; or
Obtain either of the following:
• The latest credit card statement no older than 45 days prior to application date
Remaining Credit Cards
showing limit, or
(not being refinanced)
• 'Proof of Account Balance Letter' showing other Bank logo, account name, account
details, current and available credit card balance.
Important: Guide only -
33
full credit assessment criteria.Documentation Requirements
Verifying Other Commitments
Type of Commitments Validation Method
Obtain either of the following:
Copy of latest issued Body Corporate "Notice of Contributions" or similar tax invoice
showing levies payable, or
Body Corporate Body Corporate minutes (written) received from independent property managers, or
Levies/Fees Contract of Sale (for newly acquired units/townhouses) showing levies payable, or
Owner Occupied and
Investment property Existing property already owned by the applicant, the most recent tax return showing
expenses. Existing and itemised body corporate levies/fees.
new properties being
purchased Note: Most recent tax return must be no more than 18 months old.
Note: For NSW only, where the above documents do not show levies/fees payable, obtain
written confirmation from the real estate agent confirming the levies/fees.
Important: Guide only -
34
full credit assessment criteria.35
SecuritySecurity
Max LVR
Location Additional Criteria Property Value
without LMI
Up to $3,000,000 80%
Houses
>$3,000,000 70%
Metro Plus Postcode
Up to $2,000,000 80%
Units & Townhouses
>$2,000,000 70%
Up to $3,000,000 80%
Houses
- Category 1 postcode >$3,000,000 70%
- State/Territory Capital
Up to $1,500,000 80%
cities only
Units & Townhouses
>$1,500,000 70%
Up to $2,000,000 80%
Houses
>$2,000,000 70%
- Category 1 postcode
Up to $1,500,000 80%
- Gold Coast Region only
Units & Town houses
>$1,500,000 70%
Up to $1,500,000 80%
- Category 1 postcode Houses, Units & Townhouses
- Regional centres >$1,500,000 70%
Up to $750,000 80%
- Category 2 postcode
Houses, Units & Townhouses
- Regional centres
>$750,000 70%
Important: Guide only -
36
full credit assessment criteria.Security (Continued)
Location Additional Criteria Property Value Max LVR without LMI
Category 3 postcode: Up to $750,000 80%
Houses, Units & Townhouses
- Regional centres >$750,000 70%
All other postcodes:
Up to $750,000 70%
- Properties in
postcodes that are
not included in the Houses, Units & Townhouses
VMA Security >$750,000 60%
Location Guide
Rural zoned Up to $750,000 80%
properties:
Houses / Dwellings
- Metro Plus
>$750,000 70%
- Category 1, 2 & 3
All other postcodes:
- Properties in Up to $750,000 70%
postcodes that are Houses / Dwellings
not included in the
VMA Security >$750,000 60%
Location Guide
Important: Guide only -
37
full credit assessment criteria.Security (Continued)
Security Additional Criteria Property Value Max LVR without LMI
High Density Apartments:
Unit is located within Refer to VMA Security Full Valuation required to
Standard Lending Margins
Location Guide confirm property value
Apartment / Unit - Greater Apartment / Unit must be
than 40 square metres located in a postcode Full Valuation required to 80% Owner occupied
AND less than 50 square within the confirm property value 70% Investment lending
metres
Important: Guide only -
38
full credit assessment criteria.Security (Continued)
Facility Ad ditional Criteria Property Value Max LVR without LMI
Refinanced Owner Valuation required to 80% without LMI
Residential property only
Occupied Loans confirm property value (90% with LMI)
80% without LMI
Valuation required to
Investment Loans Residential Property only 90% includes capitalisation
confirm property. value
of LMI
Important: Guide only -
39
full credit assessment criteria.Established Multiple Units 4 to 6
Ownership or purchase of multiple established residences in one complex (investment purposes
Loan Purpose
only)
Established properties only (no development)
For 2-3 units VMA Security Location Guide, category 1 and 2 locations only.
For 4-6 units VMA Security Location Guide category 1 locations only.
Security & Location
Maximum of 6 units in one complex (strata title) or 6 units on one title (non strata title)
All other existing security requirements as per Home Loan Policy to apply
Maximum LVR For 2-3 units, lower of 80% LVR or max LVR as stated in the policy.
without LMI LMI - Maximum 6 units.
Property A maximum of 6 units in one complex (strata title)
Concentration A maximum of 6 units on one title (non-strata title)
-strata titled units (units on one title)
Valuation
Requirements
complex
Important: Guide only -
40
full credit assessment criteria.Security (Continued)
Notes in relation to security properties:
• Rural zoned vacant land is unacceptable security.
• Primary property purpose must always be as a residence, must be zoned for residential
use; and used as a residence by the owner or by a tenant for residential purposes.
• Maximum property size is 40 hectares (100 acres).
• Property must be fully developed with road access and services available including
electricity, water, (mains, bore and tank only) and sewerage.
• Income produced from the property must not be the primary source of income to
service the debt.
• Excludes property on islands with the exception of islands connected to the mainland by
vehicular bridge, (State of Tasmania excluded).
• Full valuation required showing sales evidence and the marketing period must be six
months or less.
• Income produced from property must not be the primary source of income to service
the debt.
Important: Guide only -
41Property Valuations
Only one valuation may be ordered for each security property for any one credit application.
VMA requires a Full Valuation no more than 3 months old for residential property if the
application fits any one of the following criteria:
Total Aggregate Exposure for the Customer Group is $2m or more;
If the postcode of the property is in Category 2, 3 or not in the VMA Security Location
Guide.
Loan to Value Ratio (LVR) > 80%;
Valuation Security property is in a non-residential zone, i.e. Rural Residential >5 acres;
Requirements when
taking security Purchase contract is not the result of a sale in the "normal course" with real estate agent
Established involvement. E.g. related private sale;
Dwellings Any postcode in the listing of prescribed "Mining Towns";
Residential units less than 50 square metres in size;
Purchase of Vacant Land
Properties located in VMA Security Location Guide up to 85% LVR..
Postcode of the property is located in Category 1 and requires Lenders Mortgage Insurance.
Other Criteria applies
VMA reserves the right to order a valuation at any time for any transaction.
General Virgin Money utilises the following valuation types, AVM's, Desktops, or Full Valuation, subject to
Requirements acceptable criteria such as property type and attributes, location, and application details.
Note: Full valuations are also known as short form or long form valuations.
Important: Guide only -
42
full credit assessment criteria.Unacceptable Security
•
• Strata Title Hotel, Motel, Resort style dwellings, Time-share properties that cannot be occupied on a
permanent basis;
• Other properties that have a restricted market appeal e.g. aged care complexes
• Student accommodation, Boarding Houses/ Shared accommodation dwellings
• Properties zoned commercial or industrial;
• Any property that cannot be effectively mortgaged using usual bank security documents e.g. Vic
Stratum Security;
• Unit developments where the development is held as security on one title and the number of dwelling
exceeds 3 units;
•
• Residential units less than 40sqm;
• More than 6 units/apartments on one property site, irrespective of whether on one title or on separate
Unacceptable strata titles;
Security • Mixed use properties on a single title;
• Convertible units and Dual Key apartments; Studio Apartments;
• Any property within 50 metres of a high voltage power lines, tower, or electrical substation where LVR
is > 80%;
• Company Title, Purple Title (WA) and Moiety Title (SA);
• Serviced Apartments;
• Second Mortgages;
• Units less than 50 m²
• Units less than 60 m2 in prescribed high density Brisbane locations;
• Partially Constructed Dwellings;
• Mobile / Temporary Homes;
• Any dwelling assembled 'off site' requiring progress draw down payments;
• Term Deposit;
• Other criteria applies;
• Any property zoned/classified as primary production;
• Any property that is used primarily for business purposes;
Important: Guide only -
43
full credit assessment criteria.good bye VIRGIN MONEY AUSTRALIA PTY LTD Level 9, 126 Phillip Street, Sydney NSW 2000 T 02 8222 8000 virginmoney.com.au
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