Assessment Pipeline rules

All formulas are calculated in annual format and are subsequently presented on a monthly or annual basis.

The locations of the values are listed next to the title of each category.

Total Gross Income – (serviceability)
Applicant 1 combined gross income + Applicant 2 combined gross income

Total Net Income – (serviceability)
Applicant 2 combined net income + Applicant 2 combined net income

Total Expenses (serviceability)
The total of all adjusted or non-adjusted expenses value including living expenses and rental expense.

Total Debts (asset position)
The total of all debts adjusted or non-adjusted values.
(credit card and store card use the limit)

NIS (Net Income Surplus)  (serviceability)
Formula – Total Net Income – Total Expenses

This provides you with the net surplus after accounting for all buffers and shading.

DSR (excl. Liv exp) =  (Debt to Service Ratio – excluding living expenses) 
(serviceability)
Formula – Total Debt Expenses / (Total Gross Income + Non Taxable Income x 12)

DSR (incl. Liv exp) (Debt to Service Ratio – including living expenses)
(serviceability)
Formula – Total Expenses / (Total Gross Income + Non Taxable Income x 12)

DSR (Net – excl. Liv exp)  (Debt to Service Ratio – excluding living expenses )
(serviceability)
Formula – Total Debt Expenses / (Total Net Income + Non Taxable Income x 12)

DSR (Net – incl. Liv exp) (Debt to Service Ratio – including living expenses)
(serviceability)
Formula – Total Expenses / (Total Net Income + Non Taxable Income x 12)

LTI (Gross Income) Loan to Income
(serviceability)
Formula –Loan amount incl. fees / (Total Gross Income + Non Taxable Income x 12)

LTI (exposure) Loan to Income (serviceability)
Formula -Loan amount incl. fees + All existing (your company) lialbities / (Total Gross Income + Non Taxable Income x 12)

Please note that the above rule is a custom rule, which will need to be requested to Nimo for updating accordingly.

DTI (Gross Income) Total Debt to Income  (serviceability)
Formula  – Total Debts / (Total Gross Income + Non Taxable Income x 12)

NIS Ratio (Net Income Surplus Surplus) (serviceability)
Formula  – (Tota Netl Income – Living Expense) / (Repayments + Rent)

Total Net Income (NG PR)  (serviceability)
Formula  – Use net income which uses Adjusted Tax using Product Rate

Total Net Income (NG PR)(serviceability)
Formula  – Use net income which uses Adjusted Tax using Existing Rate

NIS (NG PR) (serviceability)
Formula  – Total Net Income (NG) (negative gearing using product rate) income – Total expenses

NIS (NG ER) (serviceability)
Formula  – Total Net Income (NG) (negative gearing using existing investment rate) income – Total expenses

DSR NG ER (Net – excl. Liv exp)(serviceability)
Formula  – Total Debt Expenses / (Total Net Income (NG ER) + Non Taxable Income x 12)

DSR NG ER (Net – incl. Liv exp)(serviceability)
Formula  – Total Expenses / (Total Net Income (NG ER) + Non Taxable Income x 12)

NIS Ratio NG ER (serviceability)
Formula – (Total Net Income (NG ER) – Living Expense) / (Repayments + Rent)

NDI Ratio (serviceability)
Formula – (Tota Net Income – Living Expense) / (Repayments + Rent)

LTI (Non-weighted) (serviceability)
This rule does not apply the income other weightings
Formula –Loan amount incl. fees / (Total Gross Income + Non Taxable Income x 12)

DTI (Non-weighted) (serviceability)
This rule does not apply the income other weightings
Formula –Total Debts / (Total Gross Income + Non Taxable Income x 12)

Income Employment

This section outlines the assessment rules for the applicant’s income position, including the assigned weighting for each type of income.

To facilitate proper functioning of this section, the following rules need to be enabled.

Mandatory Rules
Base Gross Income
Base Net Income
Additional Gross Income
Additional Net Income
Additional %
Additional % Gross Income
Additional % Net Income

Optional Rules
Total Gross Income Verified (optional)
Payslips (optional)
Job Type (optional)
Job Basis (optional)
Latest Job Commencement (optional)

Rules

Job Type – (serviceability)
Allows to select what type of income is allowable – PAYG, Self Employed etc.

Job Basis –  (serviceability)
Allows to select what type of employment status is allowable – Full Time, Part Time, Contract, Casual

Latest Job Commencement
Compares the employment start date and the current date

Base Gross Income
Uses the most current ATO tax brackets to display the gross value.

Base Net Income
Uses the most current ATO tax brackets to display the net value.

Additional Gross Income & Additional Net Income

Bonuses, commissions, overtime, etc. are added to the PAYG gross income when a value is entered in this field. The system then calculates the difference between the PAYG gross income and the additional income, displaying gross and net results

Example (annual) :
$100,000 PAYG gross income
$10,000 Additional gross income
$110,000 Total gross income

$100,000 = $75,033 PAYG net income
$110,000 inc addiontal income = $81,583 PAYG net income

$81,583 – $75,033 = $6,550 PAYG net income

$10,000 Additional gross income
$6,550 PAYG net income

Additional %
Include this rule if you want to apply shading to the additional income

Example:
$10,000 additional income
Additional % = 80%
$8,000 is used

Additional % Gross Income

Include this rule if you want to add a parameter to the Additional % to flag a referral when the resulting value is above, below, or equal to a certain threshold

Example:

Value Result $8,000
Parameter =  No Less Than $9,000
Outcome = ‘Refer’ due to the result of $8,000 is less than $9,000

Total Gross Income Verified
Including this rule will require a staff member to verify the gross income provided manually entering the monthly or annual income. (depends on the timeframe chosen)
Note: The Total Gross Income Verified entry will override the customer entered value.

Superannuation
This rule is predominantly used for SMSF loans. If enabled, it will calculate the PAYG based on the percentage selected, and this value will supersede the PAYG gross income as the primary value. This is used to calculate super contributions

Equifax Verification Exchange Rules
(Only add if you are using Equifax Verification Exchange)

The below specified rules will exclusively appear in the ‘Serviceability > Income Employment’ section upon clicking the ‘Evaluate’ button, situated beneath each applicant’s income, and labeled as ‘Verification Exchange Total.’

This visibility is contingent on the successful completion of the Verification Exchange, with the information status reflecting as ‘Completed.’ If not successful , then the status will indicate ‘No Record Found.’

• Gross Income Verified
• Gross %
• Gross % Income Verified
• Bonus & Commission Verified
• Bonus & Commission %
• Bonus & Commission % Income Verified
• OverTime Verified
• OverTime %
• OverTime % Income Verified
• Allowance Verified
• Allowance %
• Allowance % Income Verified
• Foreign Employment Payment Verified
• Foreign Employment Payment %
• Foreign Employment Payment % Income Verified
• Exempt Foreign Income Verified
• Exempt Foreign %
• Exempt Foreign % Income Verified
• Voluntary Agreement Verified
• Voluntary Agreement %
• Voluntary Agreement % Income Verified
• Labour Hire Payments Verified
• Labour Hire Payments %
• Labour Hire Payments % Income Verified
• Cdep Amount Verified
• Cdep Amount %
• Cdep Amount % Income Verified
• Director Fees Verified
• Director Fees %
• Director Fees % Income Verified
• Other Specified Payments Verified
• Other Specified Payments %
• Other Specified Payments % Income Verified

Document Rules

The inclusion of the following rules mandates that the applicant must provide documents, such as:

• Payslips
• Income Bank Statement
• 2 Years Financials
• 2 Years Tax Returns (Business)

2 Years Tax Returns (Individual)

Income Type

Offers the choice to select and input shading/weighting for other types of income outside the primary category.

When you click the ‘Edit’ button next to income type, a pop-up will appear, allowing you to select other allowable types of income and specify their shading or weighting. For example, if you input 80%, the system will utilise 80% of the income value.

Tip: Once you have chosen the income types, ensure that you also update the application form in the form builder under the “Income Other” module > “Type of Other Income.

Income Other Types are either gross or net income.

To facilitate proper functioning of this section feature, the following rules need to be enabled.

Mandatory Rules

Income Type (+ All options have been selected, and weightings have been applied as described above) 
Total Income
Additional %
Additional % Other Income

Rules

Gross Income Types:

• Interest income
• Investment
• Property Rental
• Foreign Sourced
• Work Allowance
• Workers Compensation
• Rental Assisstance
• Site Allowance
• Maternity Leave Income

Net Income Types:

• Property Rental (net)
• Pension
• Family Allowance
• Superannuation
• Child Support
• Carers Payment
• Family Allowance Tax A & B
• Disability Income
• Salary Continuance Insurance
• Other

Living expenses are either digitally retrieved and populated by your selected integration or completed manually at the application layer, subsequently populating the assessment layer.

Parameters consist of 100% values to display the full value of the living expenses retrieved or entered.

To facilitate proper functioning of this section feature, the following rules need to be enabled.

Mandatory Rules

All rules are require to allow for the summation of all values. If a value for the living expense category is not selected, the total living expense value will not populate, and the living expense section will instead use the HEM value

Loan Expense Home Loan

To facilitate proper functioning of this section, the following rules need to be enabled.

Mandatory Rules

Repayment Amount
Liability Amount
Repayment Amount with Buffer
Repayment Amount with Interest Floor

Optional Rules
Evaluation Percentage

The Evaluation Percentage is typically utilised for personal loans but can also be applied to home loans.

Rules

Repayment Amount
Displays the current repayments obtained either through bank statements or manual entry.

Liability Amount
Current outstanding balance on the loan

Evaluation Percentage
This rule will apply a percentage weighting to the repayment amount

Repayment Amount with Buffer

This will apply a buffer to the initial loan interest rate. For example, if a 3.00% buffer is entered:

Current interest rate: 4.00% + 3.00% buffer = 7.00% The repayment amount will be calculated at 7.00%.

Repayment Amount with Interest Floor

This will calculate the repayments based on a provided fixed value.

The assessment layer will use the higher of repayments between the buffered rate and floor rate for calcuations.

Loan Expense Other

To facilitate proper functioning of this section, the following rules need to be enabled.

Mandatory Rules

Repayment Amount
Liability Amount
Evaluation Percentage

Optional Rules
Bank Statements of Loan

The Evaluation Percentage is typically utilised for personal loans but can also be applied to home loans.

Rules

Repayment Amount
Displays the current repayments obtained either through bank statements or manual entry.

Liability Amount
Current outstanding balance on the loan

Evaluation Percentage
This rule will apply a percentage weighting to the repayment amount

Sample text

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Total Net Assets – total combined asset values after liabilities are deducted.

Combined Assets Amount – combined Asset values

Combined Liabilities Amount- combined Liabilities values

Security Property Value – Valuation of the property used to secure your loan against

Other Assets Amount – e.g., shares

Asset/Liability Ratio – Asset amount / Liability = Ratio

Is Primary Property – this the asset your primary residence.

Property Size (in square meters) – this would apply to apartments/units.

Land Area (in square meters) – property land area (farms etc.)

Accepted Property Type – acceptable company credit policy security types allowable.

Accepted Purpose – the purpose of what the loan is being used for to be acceptable as per company credit policy.

LVR – loan to value ratio – total loan amount / total valuations of all securities.

Customer Estimate Value – customer perceived estimate on what the property is worth.

Market Value – Value obtained via valuation completed by valuer.

High Risk Postcode – Post codes the company credit policy does not wish to lend too.

High Density Postcode – normally refers to apartments or strata titles with many complexes.

Land Title – Title of the property.

Land Title Encumbrances – displays the number of interests against the property (e.g., a bank has an Encumbrances/interest against a property listed on the title of the property as they have provided the customer a loan. (If a homeowner doesn’t keep up with mortgage payments, the lender has the right to foreclose on the property)

Land Title Name – name on the title (normally confirms the property owner ownership)

Land Title Type – Torrens (most common), Strata title, Leasehold, Company

Land Title Tenancy – Tenancy in common is a popular type of property ownership that means two or more people co-own property in defined shares. The shares owned in a tenancy in common can be equal or unequal. For example, you can own 99% of the shares, and your co-owner can own 1%

Proof of Land Title – evidence of the land title

Property Valuation – displays if the property has been valued.

FSD Confidence – The lower the FSD, the better quality/accuracy of the AVM. This percentage is sometimes turned into a confidence score by subtracting it from 100 percent (e.g., an FSD of 0.07 or 7 percent is a confidence score of 93 percent).

Proof of Valuation – valuation report provided by the valuer.

Customer Estimate Value – declared funds customer has advised they have available.

Verified Deposit Value – confirmed funds customer has verified via bank statements etc.

Institution – Name of the Financial Institution

BSB

Account Number

Evaluation Percentage – percentage of deposit allowable to use towards loan.

Customer Estimate Value – customer declared.

Market Value – value verified.

Evaluation Percentage – percentage of home contents allowable to use towards loan.

Proof of Asset – evidence of asset.

Customer Estimate Value – the value of the stock portfolio the customer perceives it to be

Market Value – current value of the stock portfolio as per the current market trading value.

Evaluation Percentage – percentage of home contents allowable to use towards the asset position.

Share Certificate – evidence of the stock portfolio.

Age – age of the vehicle

Customer Estimate Value – customer declared perceived value of the vehicle.

Market Value – actual value of the car on the market

Evaluation Percentage – percentage of home contents allowable to use towards the asset position.

Proof of Registration – registration certificate

Superannuation Fund Value – Funds currently within the superannuation account.

Proof of Asset – evidence via statement.

Evaluation Percentage – percentage of home contents allowable to use towards the asset position.

Customer Estimate Value – customer declared.

Market Value – value verified.

Evaluation Percentage – percentage of home contents allowable to use towards loan.

Proof of Asset – evidence of asset.

Liability Amount – amount outstanding and owing on the credit card.

Bank Statements of Credit Card – evidence to confirm actual credit card debt.

Liability Amount – amount outstanding and owing on the home loan.

Bank Statements of Loan – evidence to confirm actual home loan debt.

Liability Amount – amount outstanding and owing on the personal loan.

Bank Statements of Loan – evidence to confirm actual personal loan debt.

Liability Amount – amount outstanding and owing on the store card.

Statements of Store Card- evidence to confirm actual store card debt.

Liability Amount – amount outstanding and owing on the liability declared.

Statements of Liability – evidence to confirm actual other liability declared debt.

Age – age of the applicant

Residency Status – Australian citizen, Australian permanent resident, non- resident

Credit Bureau Check Report – credit check.

Credit Bureau Check Score – minimum score for customer to meet as per company credit policy.

Age of Credit File (days) – how old the credit check can be to be allowable to be used.

Number of Credit Enquiries – maximum of allowable Credit Enquiries for customer to meet as per company credit policy.

Number of Defaults – maximum of allowable Number of Defaults for customer to meet as per company credit policy.

Total Amount of Defaults – maximum of allowable the combined amounts for all defaults for customer to meet as per company credit policy.

Number of Credit Exposure Accounts – maximum of allowable accounts that can have defaults on.

Total Amount of Credit Exposure Accounts – maximum of allowable the combined amounts for all defaults on an account for customer to meet as per company credit policy.

Number of Court Actions – maximum of allowable Court Actions customer can have to meet as per company credit policy.

Number of Personal Insolvencies – maximum of allowable Personal Insolvencies customer can have to meet as per company credit policy.

Number of Directorships – maximum of allowable Directorships customer can have to meet as per company credit policy.

Refer to Illion Bureau ruleset

Digital ID Check – If the digital ID is completed and passed it provides a status here.

Identity Score –ID confirmed via 100-point ID check.

Passport – this area allows you to enter a prefer point to the ID.

License – this area allows you to enter a prefer point to the ID.

Medicare – this area allows you to enter a prefer point to the ID.

Bank Statements Check – Cross references the full name of the customer via bank statement.

Land Title Check – Cross references the full name of the customer via Property Title

All the below requires returning a negative or a positive depending on the company credit policy.

• PEP
• Sanctions
• Financial Regulator
• Law Enforcement
• Disqualified Director
• Insolvency
• Adverse Media
• KYC Profile

Will refer when the applicants age are below or above the ages provided.

Responsible lending questions

Purchase Goal – low rate, flexible features, certainty repayments.

Primary Feature – offset, redraw, no application fee, loan split, repayment holiday.

Secondary Feature – offset, redraw, no application fee, loan split, repayment holiday.

Refinancing Years Left – number of years left on your current loan.

Number of Dishonours – maximum of allowable Dishonours customer can have to meet as per company credit policy.

Gambling Expenditure – Monthly – maximum of allowable the amount for all Gambling Expenditure for customer to meet as per company credit policy.

Collection and Consolidation – Monthly – maximum of allowable the amount for all Collection and Consolidation for customer to meet as per company credit policy.

Overdrawn – Monthly – maximum of allowable the amount for all Overdrawn for customer to meet as per company credit policy.