Questions

Answers

For an existing Connective Elevate customer, can the offset be added to their existing variable rate loan?

Yes, they will have that ability later in the year once existing customers are migrated on to the new platform.

What is the claw back on commission on offset home loan?

Upfront Commissions are paid on the balance drawn, net of off-set and a check is completed at the 12 month mark with a new upfront paid if over $50k of any new offset funds are drawn. No clawback is applied if funds are deposited after initial upfront payment is made. All commission details are available under the research tab/commissions in Nexus.

What is the maximum loan amount on this product? Can we have 3 or 4M?

Please refer to the online credit policy for maximum loan amounts.

Do you have plans to do construction loans in the near future?

Yes, we will be adding a construction product in early 2022.

Is there any chance you will change policy and go to 90% in regional areas?

We are constantly reviewing LVR's and risk appetite beyond the major capital cities, however unfortunately at this point the answer to that is no.

Could you cover common debt reducer? Confirming 90% LVR OO no LMI

90% OO no LMI is available for Metro Sydney/Melbourne/Brisbane. For full doc loans, we don’t have a CDR policy per se, however for rental properties we will actually take 100% of the rental alongside 100% of the debt, irrespective of the relationship between the owners (can be just friends).

Do you disregard business debts with Alt Docs?

No, we treat differently for Alt Doc and you would need to deduct the repayment from the net profit, so if they have a business lease of $1k pm they need to take $12k off the NP.

Can you please confirm if Connective Elevate has any product for self employed which consider latest year income with 80% LVR . ABN more than 24 Months old?

We assess self-employed income on Prime based on the latest year to a maximum of 120% of the prior year. On Near Prime we only require 1 year of financials.

How does Connective Elevate assess self employed income for Prime Product? Do you use most recent year income or average of 2 years?

We assess self-employed income on Prime based on the latest year to a maximum of 120% of the prior year.

Questions

Answers

With loans to self employed applicants wishing to refinance, do I average the last 2 years income on the director's income and do I add back any loss on investment property?

The servicing calculator will automatically average out the last 2 years and you can add back any loses on investment property.

How much do you reduce short-term rental assessment income by?

We shade 20% of all rental income regardless of term.

When assessing the Airbnb income, I think the statements come where Airbnb take their fees and they aren't shown on the statement. So how do we get the true gross amount? (i.e. say for example what shows on the clients Airbnb may be 95% of actual income received)

This will be issued by the ATO/Tax Agent or managing agent/company. It must include the property address and the amount of rental received for a minimum of 12 months to cover periods of seasonality. This amount must be entered as the total annual amount, and not be annualised if rented for a period of less than 12 months. The period must cover a full financial year, ending 30th June of the most recent financial year as at the application submission date.

Questions

Answers

Is purchase of a future investment property an acceptable reason for cash out? Or do you require to see a purchase contract?

COVID-19 Temporary Additional Lending Requirements
Amendment to requirements for cash out greater than $250K:
Where proportion of cash out is > $250K and the purpose of the funds are for purchase of an investment property, the use of a statutory declaration has been added as an acceptable supporting documentation.
Purchase of investment property:
Contract of sale OR a statutory declaration from applicants confirming that they intend to purchase property can be used (because the loan services without the need of rental income).

Will you do vacant land only and at what LVR? Will you do construction and at what LVR?

The maximum we can lend on vacant land is 90% including LMI and construction to 95% including LMI.

Is downsizing considered as an exit strategy?

Yes, downsizing consider as exit strategy.

Do you have a max loan size?

We consider aggregate lending up to $5M. Suggest referring to bank residential lending policy on Nexus to get LVR and number of security parameters at certain $ lend.

Questions

Answers

Do you take the most years bonus if it is higher?

We take an average of the two.

Does Connective Solutions have a 1 year tax returns/financials policy for self employed full doc or do they require 2 years income verification?

Yes, for clean credit customers we can consider most recent years ITR and NOA in isolation via our Spring promotion exclusive to Connective Solutions.

I'm signed up for Connective SolutionsPlus and had a decline last month but didn't receive anything. Was I supposed to do something?

If the declined application doesn't fit the parameters or credit requirements of Connective Solutions nothing will happen. An indicative offer will only issue if the deal is suitable for the Connective Solutions loan option.

Questions

Answers

Can you accept ATO debt as an ongoing liability?

Yes, we may consider provided the debt is under a payment arrangement with the ATO and still meets servicing.

Are you looking at increasing your LVR in the construction space for prime products?

Unfortunately no construction product at Connective Advance.

What is the maximum loan size and do you have a limit on cash out amount?

Up to $1.5M against one resi asset depending on the location of the property. Cash out up to 50% of the property value can be considered.

CGT - SMSF?

More to come.

With Commercial, is there any restrictions on location of security?

Please workshop location with your relationship manager as we are guided by population.

Is there a max loan amount for commercial SMSF?

Up to $3M at 75% LVR.

Is there any tolerance in accepting a valuation that is older than 3 months?

The 3 month valuation rule is in line with the valuers PI cover.

Connective Advance requires the loan to settle within 3 months of the valuation date.

Yes, unless we request an updated valuation report to update PI cover.