Lending

Customer eligibility & policy requirements

Loan submission checklist

This is not an exhaustive list, refer to the Car Loans Credit Guidelines for full options and requirements.

Credit Reference

A CCR file should be provided at submission.

Credit reference requirements:

E.g. If the original monthly repayment is $500 per month, the repayment amount for the current application can be any amount up to $500 per month.

Not meeting any of the above criteria means that full financial assessment is required.

Please ensure the following is provided/considered in the application submission. 

Customer eligibility & policy requirements

Loan Submission Checklist

Supporting documentation

For Individual Applicants

Supporting documentation

For Sole Trader, Partnership, Company Incorporated Entity, Trust Applicants

Effective 15^th of January to 30^th of June:

Latest full year of:

OR

And one of the following additional documents:

OR

OR

OR

Effective 1^st of July to 14^th of January:

Last two full years of:

 OR

For self-employed professional specialists:

Balloon guidelines

The balloon values below are guidelines only. Factors to take into consideration when determining the most appropriate balloon include:

• Effective life of the vehicle
• Kilometres to be driven
• Proposed usage (heavy or light)
• Predicted value at maturity, and
• Appropriateness for the customer.

Final balloon payments may be scheduled into the loan only where it’s suitable for the customer and is consistent with their requirements and objectives. Only customers assessed by us as appropriately credit-worthy will be approved for final balloon payments in accordance with these guidelines.

Chattel Mortgage

Credit reports

Application with ‘unacceptable’ or ‘adverse’ credit report items should be declined. ‘Unacceptable’ credit report items include:

• Unpaid defaults (‘outstanding’ or paid within 30 days of application submission)
• Paid financial defaults
• Court Action / Writ or Summons / Judgement
• Disqualified Directorships
• Bankruptcy
• Deregistered Company
• Strike-off Action
• Company under external administration
• ‘Adverse’ credit report items include:
  • Bureau score less than 500
  • Paid non-financial defaults greater than $500 (telco or utility).

Privacy consent forms

You are required to submit a Macquarie privacy consent form for all applicants and guarantors at the time of application submission.  This form must be signed and dated on or before the date of submission.

For any applications that are auto approved, a privacy consent form will be included as an approval condition and must also be provided at the time of application submission.

If an additional borrower or guarantor has been added as part of an application amendment, a privacy consent form for each additional borrower/guarantor must also be submitted to us at the time of the amendment.

You can send this to us by:

• Email to leasingcredit@macquarie.com (include the ELN application number in the subject line of your e-mail) or
• Use the document upload function found under the documents tab in MacLease.

For more information and insight into how we assess your deals, download a copy of our Car Loans Credit Guidelines.

Please note we’ll be unable to proceed to credit assessment if we do not receive a copy of the Macquarie privacy consent form.

Download a copy of our Written privacy consent form and our Privacy consent checklist.

For any applications that fall outside this criteria contact your BDM.  

Introduction

We recommend reading the below checklist and policy summary to ensure you know which criteria we’re looking at when processing your client's loan application.

Providing complete and accurate credit information when submitting a consumer loan application can help reduce turnaround times, increase efficiency and may lead to better outcomes for your clients. 

We’ll reach out to you if we require further information during our assessment. 

For more information, download a copy of our Car Loan Credit Guidelines.

Loan Submission Checklist

To be provided with every application

Application Data Entry Tips

Applicants’ details:

Credit requirements:

Supporting Documentation

PAYG applicant

Self-Employed applicant

Effective 1st of July to 14th of January:

Latest full year of:

And one of the following additional documents:

The same information will be required for all entities where the Borrower is a director with a shareholding >20% and derives an income.

Effective 15th of January to 30th of June:

Last two full years of:

Where the most recent period is not finalised, then draft financials or tax returns can be provided, subject to an accountant’s written confirmation they will be unchanged when lodged or finalised.

The two year requirement can be met even when the prior year is not a full year as long as comparative results between each year is available.

Where directorships are identified through individual credit reports, the trading status should be confirmed with the applicant.

Company Director

Individuals who are identified as being directors of one or more companies are subject to additional enquiries/verification.

Individuals who fall into any of the following categories may be assessed as “PAYG” for the purposes of income verification (see section 3.4 PAYG Income Verification in credit guide):

For all other individuals, the following verification is required per the below:

When not relying on income from these entities to service, we’ll require:

Where relying on income from these entities to service, we’ll require:

For self-employed professional specialists:

Serviceability 

It’s important when you're submitting a client's application, you make every effort to understand their individual financial situation (income, expenses, assets and liabilities).  

Determining a clients serviceability forms part of the application submission process. Use the Expense Guide to assist you with your conversation and making further enquiries. 

For credit assessment, income scaled Household Expenditure Measure (HEM) is used. 

Important considerations to take into account as part of determining serviceability: 

• All sources of household expense and liability must be declared 
• Any future changes to the applicants’ living situation, e.g. retirement, expecting a child or buying a new home 
• Whether spousal income is required to support serviceability. 

Credit reports

Applications with ‘unacceptable’ or ‘adverse’ credit report items should be declined.

‘Unacceptable’ credit report items include:

• Unpaid defaults (‘outstanding’ or paid within 30 days of application submission)
• Paid financial defaults
• Court Action / Writ or Summons / Judgement
• Disqualified Directorships
• Bankruptcy
• Deregistered Company
• Strike-off Action
• Company under external administration
•  ‘Adverse’ credit report items include:
  • Bureau score less than 500
  • Paid non-financial defaults greater than $500 (telco or utility)

Spousal Income

A non-borrowing spouse (NBS) is acceptable where spousal income is required to service (as part of household income and HEM living expenses) but the spouse is not a borrower on the loan. Spousal income may be considered subject to the criteria below:

• The non-borrowing spouse and borrower must be living at the same address.
• The ‘non borrowing spouse declaration form’ should be submitted at origination with all other documentation
• 100% NBS PAYG income can be used, capped at the level of the applicant’s PAYG income.
• Spouse PAYG income is verified in the same way as the primary applicant’s PAYG income

Other income

Rental income

70% of residential rental income will automatically be considered in the capacity calculation to account for vacancy and costs such as strata, rates, water and maintenance.

60% of short-term stay (holiday letting/serviced apartments), room rental properties and non-residential (e.g. commercial, industrial, office) will be considered in the capacity calculation.

Income apportioned in line with the borrower(s) % ownership of the property.

Rental income must be verified by one of the following:

• A recent rental statement (must be addressed to borrower) no more than 60 days old
• Current executed tenancy agreement (arms-length through a real estate agent), showing rent, commencement date and termination date (as evidenced in the contract of sale)
• Most recent tax return less than 18 months old
• Bank statements (rental credits evident for a minimum of three months).

Other investment income

80% of Investment Income will be automatically considered in the capacity calculation.

Investment assets must be in the name of the borrower(s) and include:

• Cash in interest bearing accounts (interest income) not including offset accounts
• Shares (franked dividends, franking credits, unfranked dividends)
• Managed funds (distributions).

Investment income must be verified by:

• Recent bank statements (investment credits evident for a minimum of 3 months). The statements may cover a period shorter than 3 months, so long as the investment income credits represent at least 3 months payments or
• Most recent tax return less than 18 months old or
• Taking a deeming rate of 3% of the investment asset’s value where actual income is unknown. The asset’s value must be verified via stock holding reports or bank account statements and to ensure consistency is the lower value from the current statement or a statement from 12 months ago, at the time of approval. 

Superannuation income

100% superannuation income will be considered in the capacity calculation.

Superannuation income must be verified by:

• A superannuation (income) statement or
• Most recent tax return less than 18 months old or
• Recent bank statements (superannuation credits evident for a minimum of three months). The statements may cover a period shorter than three months, so long as the superannuation income credits represent at least three months payments.

Government benefits

Government benefits must be regular and ongoing throughout the term of the contract. Eligible government benefits include:

• Age pensions and pension supplements
• Carer payment
• Carer allowance                                                                                                  
• Child care rebates
• Veterans affairs pension
• Family tax benefit part a and b
• Disability support pension
• Rent assistance
• Remote area allowance and
• Department of veteran affairs (DVA) pension.

Any lump sum advance repayments or annual payments must be investigated to ensure the applicant can meet their repayment obligations without financial hardship.

Government payments must not exceed 50% sum of total acceptable income.

Government benefits must be verified using the Centrelink income statement, which needs to:

• Be a paper or electronic version
• Clearly show applicant’s name
• Be no more than one month old as of the date that Macquarie receives the statement
• Contain details (such as address, marital status and number of children) which are consistent with the details declared on the credit application.

Income can only be considered if it is listed on both the “Previous regular entitlements and payments” and the “Future regular entitlements and payments” sections of the Centrelink income statement.

Department of Veteran Affairs (DVA) Pension must be verified using either a:

• DVA statement or
• Centrelink statement

Verification document must be recent (within 30 days) and confirms applicant’s entitlements. Where Centrelink statement is used for verification, the above requirements apply.

New to job

Where an applicant has started a new job within the last 90 days and has been employed for less than 12 months in the same field/industry, the following income verification is required:

• A signed copy of employment contract; or
• Payslip; or
• Verbal employment reference.

The copy of an executed employment contract must confirm:

• Employment term (if contracted)
• Commencement date
• Income including any allowance or deductions (if applicable).

Please note casual employees require a minimum 6 months in current role or 12 months in industry.

Balloon guidelines

The balloon values below are guidelines only. Factors to take into consideration when determining the most appropriate balloon include:

• Effective life of the asset vehicle
• Kilometres to be driven (if a vehicle)
• Proposed usage (heavy or light)
• Predicted value at maturity, and
• Appropriateness for the customer.

Final balloon payments may be scheduled into the loan only where it isn’t unsuitable for the customer and is consistent with their requirements and objectives. Only customers assessed by us as appropriately credit-worthy will be approved for final balloon payments in accordance with these guidelines.

Where the loan term is greater than 60 months, balloons are not acceptable.

Any balloon <$5,000 must be paid out at end of term and is not eligible for Balloon refinance as this is less than the minimum amount financed.

Privacy consent

You are required to submit a Macquarie privacy consent form for all applicants and guarantors at the time of application submission.  This form must be signed and dated on or before the date of submission.

For any applications that are auto approved, a privacy consent form will be included as an approval condition and must also be provided at the time of application submission.

If an additional borrower or guarantor has been added as part of an application amendment, a privacy consent form for each additional borrower/guarantor must also be submitted to us at the time of the amendment.

You can send this to us by:

• Email to leasingcredit@macquarie.com (include the application number ELNXXXXXX in the subject line of your e-mail) or
• Use the document upload function found under the documents tab in Maclease.

For more information and insight into how we assess your deals, download a copy of our car loan credit guidelines.

Please note we’ll be unable to proceed to credit assessment if we do not receive a copy of the Macquarie privacy consent form.

Download a copy of our Written privacy consent form and our Privacy consent checklist.