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Home lending policy updates

This guide covers a number of important updates to our home lending policy, including changes to documentation requirements and how we assess certain types of income and expenses.

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Expenses

Our policy is based on the higher of the customer's declared expenses or the applicable benchmark. We expect declared expenses to be reasonable and will verify them against bank statements and the application presented. Where declared expenses fall below the applicable HEM benchmark, Keystart may request further information.

Minimum documentation requirements

We have reduced our minimum documentation requirements to streamline the application process.

EvidenceWhat we needKey change 
Income documents
  • One payslip with a year-to-date (YTD) figure covering a minimum of three or six months, dated within 30 days of application submission, or
  • Two consecutive payslips dated within 30 days of application submission, plus a YTD Income Statement.
  • Refer to the type of income as outlined in the Consumer Lending Policy in the Broker Portal to understand if three or six months is required for the YTD figure. This will enable us to effectively annualise the income. 
This has changed from 4–5 documents to 2–3 documents.  
Payment summaries or income statements (if applicable) 
  • Latest PAYG Payment Summary or Income Statement. This is available from myGov.
Will only be required on a case-by-case basis. Previously required for all applications. 
Tax returns (if applicable) 
  • Sole commission income earners: completed tax return and ATO Notice of Assessment for the previous full financial year.
  • Self-employed: completed tax returns and financial statements if applicable, and ATO Notice of Assessments for the two previous full financial years.
Documentation remains unchanged, however Keystart will now use the average of the last two years income instead of the lower.
Centrelink (if applicable) 
  • Full Centrelink Income Statement dated within 30 days of the application submission. This is available from myGov.
  • Bank statements or transaction listings (must state account name, account number and running balance) over a one-month period with the most recent transaction being dated within 30 days of the application submission evidencing the income crediting the account. 
This has changed from the previous requirement of three months.
Child maintenance (if applicable)
  • Most recent Child Support Statement dated within 30 days of the application submission, or a Court Order stamped by the court.
  • Bank statements or transaction listings (must state account name, account number and running balance) over a three-month period with the most recent transaction being dated within 30 days of the application submission.
This has changed from the previous requirement of six months. 
Bank statements
  • For each applicant, we require the latest one month’s statements for the primary account that confirms income and expenses. If income and expenses are spread across more than one account, one month’s statements are required for all relevant accounts.
  • We require evidence of funds to complete the purchase. This can be verified by a proof of balance or a screenshot of the current balance showing the account holder name, account number and date. For proof of funds, if not in the primary account, we don’t need the full statement.

This has changed from three months to one month for each customer.

 

Personal loans and credit cards

We no longer require evidence of repayment history for loans repaid within three months of application submission. If we become aware of a recently repaid loan that is not listed on CCR, we may require further information. 

We will rely on CCR reporting to validate the conduct of commitments noted in the report. 

Where a current credit facility is not listed on CCR, you are required to provide:

  • six months of history for personal loans, and 
  • one month of history for credit cards.

These are required to demonstrate satisfactory account conduct.

We need a copy of any loan contracts or a screenshot confirming the minimum monthly repayment, showing the account number and account name. 

Other changes

Further details on salary packaging, HELP debts, parental leave, and customers with more than two jobs can be found in the Consumer Lending Policy in the Broker Portal. 

Required information only

We only require the information that helps us complete our assessment. Sending extra documents may lead to more questions and rework, putting additional pressure on Keystart’s operations team. We want to work together to provide a seamless experience for applicants.

Need more detail?

For full documentation requirements, refer to the Consumer Lending Policy - Appendix C Employment and Income Verification Matrix. You can access this in the Broker Portal.