Bank SA

Latest News

13 October 2020

Introducing new Home Loan Serviceability Rates

Effective from Friday 9 October 2020, the floor rate is decreasing from 5.35% p.a. to 5.05% p.a.

These changes will impact the benchmark rate that is used for serviceability assessment.

Floor and Buffer Rate

  • If the variable rate applying to the proposed loan plus the interest rate buffer of 2.50% p.a. is less than the floor rate, then the floor rate is applied as the benchmark rate.
  • If the variable rate applying to the proposed loan plus the interest rate buffer of 2.50% p.a. is greater than the floor rate, then the rate on the loan plus the interest rate buffer is applied as the benchmark rate.


If a pipeline application has not been formally approved, ApplyOnline will update to reflect the new floor rate and benchmark rate.

An application which has been formally approved prior to Friday 9 October 2020 will not be impacted by the change and will retain the existing benchmark rates.

Residential Lending Policy changes

We continually review our policies and procedures to ensure we are lending responsibly to our customers and remain committed to helping our customers purchase their next property.

In response to changes to Australia’s economic outlook, we have made the following adjustments to our Residential Lending Policy effective Friday 9 October 2020. 

This includes removing some temporary adjustments made at the start of the COVID-19 pandemic to reduce risk for home loan applicants in some industries and areas.

Reinstating our Lenders Mortgage Insurance (LMI) waiver offering

The LMI waiver offering will be reinstated for up to 90% Loan to Value Ratio (LVR) for our Industry Specialisation Sector Package.

LMI fee waiver for Medico Sector

LMI fee waivers will be available for new Owner Occupier (OO) and Investor (IPL) home loans for certain qualifying medical professionals who are eligible for the Medico Sector Policy with a maximum LVR of 90%. Previously the maximum LVR was 85%.
 Removal of self-employed maximum LVR changes

The maximum LVR limit of 80% on all self-employed OO and IPL home loans is being removed.
When the borrower is self-employed or if self-employed income is used in the loan application, the maximum LVR of 80% will no longer be applicable and Mortgage Insurance is now available. A loan application is classified as self-employed, when:

  • The applicant is self-employed.
  • Any self-employed income is used in the application.
  • An applicant who receives PAYG income from a business wholly or partially owned by their spouse.
  • The applicant’s income is assessed using Self-employed Applicants Policy.

Removal of Tourist postcode maximum LVR

We are removing the maximum 70% and 80% LVR limits on all COVID-19 Tourist postcodes for OO and IPL home loans.Applications in the pipeline are also eligible for these Lending Policy changes.

For further information, please visit the broker website or speak to your BDM.

1 September 2020

Residential Lending Policy changes effective Monday 31 August 2020

In-line with our efforts to support you and our customers, we are making two changes to our credit policy.

  • Income verification - age of payslip.
  • Changes to COVID-19 Interest Only extension and switching policy.
These changes ensure that we continue to assist our customers with their residential lending requirements in a responsible way.

Income verification - age of payslip

The age of the latest payslip or alternative document/s being used, has increased from 14 days to 1 month at the time of application submission (either AIP or full approval) in ApplyOnline, for all PAYG and casual employees.

The Minimum Documents Standards Matrix in the broker portal has been updated to reflect this change to policy.

Please note, in the ApplyOnline checklist it will ask for a payslip aged ‹14 days. This is in the process of being updated, please ignore and refer to the new policy.

Changes to COVID-19 Interest Only extension and switching policy

To support our home loan customers in managing their repayments during this climate, we will be extending the current policy to allow the following Interest Only (IO) requests to be completed without a full serviceability assessment or need for re-origination until Wednesday 31 March 2021:  
  • Up to 12 months IO extension without a term extension.
  • Up to 12 months IO extension with a term extension.
  • Principal & Interest to Interest Only switch for up to 12 months.

For a refresh on the full details, including eligibility and the process, refer to the COVID-19 Broker Interest Only Request form or refer to the broker training pack which will be available on the broker portal from Wednesday 2 September 2020.

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