The ABC has announced a series of changes that could help brokers close more deals for independent clients.
Self-employed workers will now be able to be assessed against the wages they pay themselves from their businesses, with six-month payslips and a letter from their accountant now an option to help clients secure a home loan.
“The broker channel is extremely important to CBA, and in particular to the independent client segment,” said Chris Moldrich, managing director of corporate loans at CBA. “More than ever, given what we are seeing with blockages, the support of independent corporate clients is of critical importance. “
“We’ve made some changes, and we’re really excited, that we’ve made based on the feedback from brokers we’ve heard about the challenges of accessing home loan financing for the self-employed.”
“One of the changes we made is to accept paychecks for clients who pay themselves a salary through their business, to accept payslips for a period of six months plus a letter from the company. accountant confirming that the company can pay its debts in lieu of all the financial information we would have requested in the past.
“There are a few broker clients that we encountered where a client would previously have had to provide financial information in order to assess their business loan and home loan, but instead we were able to retrieve the payslips from the income they paid. themselves and the accountant’s letter.
“We were able to endorse this with one day, which shows a much better experience and a better turnaround, both for the client and, more broadly, for our brokers.”
“We see this as a great opportunity to help the self-employed and make it easier for them. The changes stem from comments aimed at making it easier for these clients to access finance, which was not always the case in the past, for example when they had to provide multiple sets of financial information to assess the loan.
“The feedback has been very positive about the changes we’ve made and we continue to look for ways to make it easier. “
The ABC isn’t just judging payslips: it will look at financial information that dates back to before the pandemic for self-employed workers who may have been adversely affected in the past 18 months.
“This is something that we continue to examine,” Meldrich said. “We implemented the loan deferrals that we reintroduced in July, and that has certainly been a priority in how we assess clients for home loans.”
“There’s a new process around payslips, and the other thing we’re doing is looking at clients who have been challenged in business performance this year or last year due to bottlenecks. We look at previous years to see if they are back on track.
“We continue to look for ways to examine how clients generate income after foreclosure so that we can assess their loans. This needs to be in mind as we emerge from the blockages in Victoria and New South Wales. “
“We want to be the number one merchant bank, and part of that is helping the self-employed. They are a vital part of the economy and they are important to the ABC, just like the broker channel. We want to make sure we take broker feedback into account and make changes like this that support brokers and their clients. “
“We have also strengthened our pre-trade team, the people who are there to organize trades for independent clients with brokers, and we have put more people in our case management team for clients presented by brokers. passing. We are making more trainers and coaches available to help brokers in all things self-employed.
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