Macquarie are reinstating streamlined assessment

May 6th, 2020

The below outlines Macquarie’s reinstated streamlines assessments and changes to their asset finance credit policy

Commercial streamlined assessment update

Reinstating and updating their commercial streamlined assessment process.

Replacement and balloon refinance of existing Macquarie loans:
• for these applications, their existing policy applies.
New lending including refinances from an external lender:
• for new commercial express, as well as replacement finance and balloon refinance from an external lender, they’ll require:
○ property ownership from at least one of the director-guarantors, and
○ evidence of trading income continuity (see further information on this below)
• for applications where LVR is greater than 100% and less than or equal to 115%, they’ll require time in business to be three years or greater. This requirement will not apply where the LVR is less than or equal to 100%.
They will no longer accept applications with an LVR greater than 115%.

Income and employment verification

For PAYG applicants:
• the application must include a bank account statement showing a salary credit no older than 14 days at the time of settlement, matching the most recent payslip
• alternatively, a Macquarie credit assessor will need to speak to the applicant’s employer to confirm employment status and current income.
For all self-employed and business applicants:
• they no longer require BAS statements
• they now require bank statements from at least 1 January 2020 onwards (and no older than 14 days at time of settlement) showing credits or deposits evidencing consistent trading income
• where there’s a material decline in trading income, they’ll make further enquiries regarding the client’s capacity to service the loan, and the streamlined assessment process will not apply.

Credit policy changes for LVR 100-115%
For applications where the LVR is greater than 100% and less than or equal to 115%, their requirements are outlined below.

For commercial loans with LVR 100-115%:
• strong credit history or good conduct on a current or recently repaid Macquarie vehicle or asset finance loan/s, and
• evidence of consistent trading income for all applications.
For consumer loans with LVR 100-115%:
• strong credit history or good conduct on a current or recently repaid Macquarie vehicle or asset finance loan/s, and
• additional income verification for all applications and employment verification where required.

Applications we’re unable to consider
In the current environment there are now some applications that they will no longer accept. These are:
• applications with an LVR greater than 115%
• new ventures (including self-employed and companies with time in business under 12 months) where there is no continuity of business
• applications where capacity falls below our minimum buffer requirements
• consumer deals with non-borrowing spousal income – they now require the person receiving the income listed on the application to be a co-borrower on the loan.

Effective dates
All new applications submitted on and from Friday 8 May 2020 will be assessed under the new credit policy.

Please note that existing applications that have been approved before Friday 15 May 2020 can proceed to settlement if no amendments are made that increase the monthly payment or amount financed.