St George loosens credit criteria

St George Bank loosened credit criteria across a range of its home loan products. St George has reduced the interest rate buffer on home loan calculations to 1.15 percentage points above the advertised standard variable rate, from 1.63 percentage points and extended the reduced interest rate buffer to “low doc” and “essential” home loans. The bank also reduced the amount of surplus income a borrower must have, to only five per cent more than the cost of serving a loan for a standard home loan. The bank also removed the requirement for genuine savings for “family pledge” home loans, as long as the loan to valuation ratio is less than 80 per cent. For “no deposit” home loans, St George no longer requires a letter of employment.