BRIDGING LOANS
How you enter a Bridging or Relocation loan within the SOCA (Statement of Credit Assistance) within Infynity, will depend on how you are going to be submitting it to the Lender.
The SOCA and your submission to the Lender needs to reflect the same information.
Be guided by your Lender on how you need to structure the Bridging loans. Some Lenders are happy for the one total loan amount for the full Peak Debt and other Lenders may require you to complete multiple submissions ie one for the Peak Debt and one for the End Debt as required.
Currently not all the Lenders have specific Bridging loan parameters within ApplyOnline (AOL), for those Lender that do not, be guided by your Lender BDMs instructions on how to submit these types of applications. Below is an example to help you create the SOCA within Infynity.
Example 1 – One submission for the full bridging loan requirements
• Select ‘’Bridging’’ as your loan objective within the SOCA
• Select ‘’Bridging Finance’’ as your loan requirements
• Select Bridging as your loan purpose and either create the one loan amount or with splits as required.
• When preparing product comparisons, ensure that you indicate that the loan purpose is for ‘’Bridging’’. As Bridging loans are different across the Lenders, we recommend that you add in the comparisons manually within the SOCA document to best show the required products.
Example as one loan
Example with split loans
When you are doing the product comparisons, the chances are that the clients may not be able to service the full peak debt, and you may require a lender that accepts end debt servicing.
Within Infynity, you cannot select capitalised interest on a loan, therefore you will need to select a lender on IO, even if they do not service in Infynity and cover off on your notes for the file.
Once you generate the SOCA, it is a word document and does allow you to review the information and amend/add details directly within the SOCA document to reflect the Bridging loans, before sending to the client for signing.
Example 2 – One SOCA submission for two separate loan applications (peak debt and end debt) – at the request of the Lender
You can create the one (1) SOCA selecting two (2) loan objectives depending on the scenario. Complete the two loan objectives/purposes within the loans, securities & commentary tab
Under the recommendation tab select your Lender/Loans as normal, for each loan objective
- Based on your objectives, the SOCA will produce two mortgage finance submissions as per this example below
View and edit each submission before submitting to the Lender via NextGen ApplyOnline (AOL) as normal.
Remember to link the applications in AOL (where required by the lender) and or have clear notes to indicate that there are multiple submissions that need to be assessed at the same time.
Remember to complete the Bridging Loan calculator for the relevant Lenders to make sure it meets their Bridging policy.
ApplyOnline
Once you are in the latest version of AOL, for those lenders that have proper bridging features, you will be able to select “bridging’’ as an application type within the application tab (you will find it within the new version of AOL).
Those lenders that are still on the previous version of AOL or have specific bridging requirements you will need to follow lender instructions on how to load them into AOL and cover off on your notes.
Disclaimer: This information is current as at the time of each QRG publication. It is a general information guide only.