At VMG, they are implementing a couple of policy changes to provide a more flexible and fair assessment of your client’s financial circumstances. The following policy changes will be effective immediately:
1. Rental Income and Negative Gearing:
Negative gearing benefits will be factored back in for servicing purposes. This change provides a more accurate representation of your clients’ financial positions, enhancing their borrowing capacity.
2. Adjusted HEM for Child Support Arrangements:
When there is evidence of a Child Support arrangement, they will adjust the HEM accordingly. For instance, in a 50/50 custody split, they will consider only 50% of the HEM for dependents. This policy acknowledges shared financial responsibilities and ensures a fairer assessment of your clients’ financial commitments.
VMG is also sharing a case study that showcases their commitment to supporting every broker and borrower who partners with VMG.
CASE STUDY:
Customer: Male Applicant (receiving incapacity payments) & Female Applicant (PAYG)
Loan Amount: $544,000
Assist with the purchase of owner-occupied property
Outcome:
FA working full-time PAYG and MA receiving incapacity payments from the Department of Veterans’ Affairs. FA had an affected credit score from a previous default of <$5k that was paid and cleared. MA is entitled to fortnightly payments until the pension age of 67 based on regular medical consultation approvals – there was no definitive way to confirm these payments would continue until age 67 (MA’s current age is 61). After seeking confirmation from the MA that VMG could speak with his medical practitioner to understand his history, they made a common-sense decision that his incapacity payments should be allowed in their servicing assessment.
Visit their website to Find Out More.
To download their latest Product Pack click here and for their Niche List here.
VMG’s team is committed to providing exceptional service and support. If you have any questions or need further assistance, please contact them here.
For any other questions please reach out to your BDM.
