Interest Only Loan Renewals

Key information

Effective Monday 5th March 2018, all Interest Only Loan Renewals will be regarded as a Credit Critical event requiring Full Income Verification (following the Streamlined Credit Critical process). This includes:

  1. Changing from Principal & Interest (P&I) to Interest Only (IO) Repayment Type.
  2. Extending an Interest Only (IO) term.

Frequently Asked Questions

Does this change apply to all ANZ home loan products? Why are we making these changes? Do changes apply to other renewal requests (e.g. product change) currently processed via NCC? Does the new policy apply to customers seeking changes within the term of an existing IO period, for example, a product change within existing 5 year IO term? Will systems be updated to support this change? How will interest only renewals be processed from the effective date? What happens if the serviceability test via SCCR process does not pass? Do the changes apply to interest-in-advance loans? Will inflight applications be impacted? What are we doing to help our customers prepare and transition to principal & interest repayments?

Action required

All Interest Only Loan Renewals will now be a Credit Critical event, requiring Full Income Verification.

Lenders to familiarise themselves with this new requirement and ensure all renewals are processed as Credit Critical.

More information

https://www.anz-originator.com.au/brokerdistribution/login