Broker quick reference guide    

Spend less time searching for the basic info you need. We’ve put the important stuff in one place, so you can check your clients’ eligibility at a glance.

As always, check with your BDM to understand our full policy details.

Income

What we’ll consider

1

Self-employed applicants

For sole traders with a turnover less than $75,000 who don't complete Business Activity Statements (BAS):

  • The most recent year’s Australian Tax Office Notice of Assessment (NOA),

AND

  • The most recent bank statements showing credits or deposits evidencing consistent trading income for the most recent:
    • One month, where the most recent NOA is available; OR
    • Three consecutive months, where only the year preceding the most recent NOA is available.

AND

  • The most recent personal tax return

AND

  • The most recent financial year's accountant prepared financials (Profit and Loss Statement and Balance Sheet) showing the last two consecutive years*.
     

* If accountant prepared financials are not available for sole traders, two years’ personal tax returns are required.

For sole traders (with a turnover greater than $75,000), partnerships, trusts, or companies:

  • The most recent year’s Australian Tax Office Notice of Assessment (NOA) from each individual, director, or guarantor, involved in the transaction; 

AND 

  • Personal and business (partnership, company, trust) tax return from the most recent financial year;

AND 

  • The most recent financial year's accountant prepared financials (Profit and Loss Statement and Balance Sheet) showing the last two consecutive years.

In addition to the above requirements the following is also required: 

  • Where the most recent financial year’s NOAs have been provided; 
    • The most recent one-month bank statement OR all BAS submitted for the current financial year^. 
  • Where the previous financial year’s NOAs have been provided;
    • All BAS submitted for the most recent full financial year^, AND either;
    • The most recent one-month bank statement OR all BAS submitted for the current financial year.
       

^ If the income derived from the most recent financial year’s BAS compared to the previous financial year’s tax return or the previous financial year’s financial statements is negatively impacted by more than 15%, then the most recent year’s accountant prepared financials or management accounts – including both the Profit & Loss and Balance Sheet – must be provided.

2

Casual income

Applicants must be employed for a minimum of six months with their current employer.

3

Probation policy

Probationary period accepted up to 80% (no LMI).

4

Allowances

  • 100% usage for applications not subject to LMI.
  • 100% usage for Health Care and Emergency Services Workers.
  • Where LMI is involved and the employee is not a Health Care or Emergency Services Worker, an employment contract or letter from the employer outlining the amount and frequency of the allowance must be provided for 100% to be used, otherwise 80% usage.
5

Overtime, commission and bonuses

  • Overtime income – 80% usage​
  • Bonus income – 80% usage (lower of the last two years)​
  • Commission income – 80% usage.

Loan to value ratio

Our LVR guidelines

1

Genuine savings

  • 5% genuine savings required to be held over three months where LVR is >90%
  • Max LVR 90% where no genuine savings held.
2

LMI capitalisation

  • Owner occupied purchases, WA security only, to 95% LVR + LMI capitalised, 98%
  • Owner occupied purchases, with non-WA security, to 95% LVR max incl. LMI capitalisation
  • Investors – max 90% LVR incl. LMI.
3

Interest only

  • Owner occupiers with interest only repayments – max 80% LVR incl. LMI capitalised
  • Investors with interest only repayments – max 90% LVR incl. LMI capitalised.
4

Cash out

80% LVR or below and amount $1m or below, only commentary required.

5

Refinance

  • Owner occupier refinances – max 90% LVR + LMI
  • Investor refinances – max 90% LVR incl. LMI.

Security

Acceptable security types

1

Residential units  /  Off the plan

Residential units are units or flats in a development that has ≤5 floors, or ≤50 accommodation units.

  • Units must have an area ≥40sqm (based solely on the living area) and at least one separate bedroom
  • Owner occupiers with P&I repayments – 80% LVR, or up to 95% LVR with LMI approval
  • Investors – 80% LVR, or up to 90% LVR incl. LMI
  • Excludes units located within high density developments or off the plan – different max LVRs will apply. Please refer to your BDM
  • OFF THE PLAN – applications within six months of settlement can be assessed and progress to unconditional approval.
2

High density units

High density units are units or flats in a development that has ≥6 floors, or >50 accommodation units.

  • Units must have an area ≥40sqm (based solely on the living area) and at least one separate bedroom
  • Differing max LVRs apply – high density units will be considered up to a max LVR of 80%. With LMI approval, P&I OO applications up to 95% LVR (including LMI) and 90% LVR (including LMI) for investment.
    • Excludes units located within high density developments or off the plan – different max LVRs will apply. Please refer to your BDM
3

Off the plan

  • Units must have an area of ≥40sqm (based solely on the living area) and at least one separate bedroom
  • Differing max LVRs apply. Max LVR 80%. With LMI approval higher LVR’s may apply dependent upon loan type, and location of security.
    • For units located within high density developments or off the plan – different max LVRs will apply. Please refer to your BDM
4

High density off the plan

High density units are units or flats in a development that has ≥6 floors, or >50 accommodation units.

  • Units must have an area ≥40sqm (based solely on the living area) and at least one separate bedroom
  • Differing max LVRs apply. Max LVR 80%. With LMI approval higher LVR’s may apply dependent upon loan type, and location of security.
    • For units located within high density developments or off the plan – different max LVRs will apply. Please refer to your BDM
  • Applications within six months of settlement can be assessed and progress to unconditional approval.
5

Construction

  • No loading on construction rates
  • Min level of fit out required for residential dwellings is completion of the driveway to council crossover and boundary fencing. We’ll accept and rely on quotes.
  • Construction of multiple (up to four) residential dwellings on one title. Max LVR 80% subject to a copy of the council approved plan of subdivision, which must be submitted with the application.
The information contained within the document is a guide only and the Bank reserves the right to request additional information. All applications are subject to credit policy rules and validation. Bankwest reserves the right to make final credit decision on all applications.

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