NZCU Baywide home loans are available through our adviser network in all areas, excluding Greater Auckland and Hamilton City.

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1 Flexible low deposit * home loans NZCU Baywide home loans are available through our adviser network in all areas, excluding Greater Auckland and Hamilton City. If your customers are looking to: Purchase their first home Upsize to their second home Build their investment portfolio Or refinance with another provider Our competitive rates, flexible terms and supportive lending team could help them achieve their goals of home ownership. First home buyer specialists If your customer is in the market for their first home, they may qualify for our low deposit * home loan. Available in-branch and through our adviser network, our low deposit * home loans can help your customers achieve the impossible and allow them to take their first step onto the property ladder. Competitive commission for low deposit home lending All eligible applications qualify for a commission of 40 basis points. Plus, for a limited time, a bonus of 10 basis points is available, providing a total commission payment of 50 basis points. About NZCU Baywide 100% Kiwi Customer-owned co-operative Not-for-profit 40+ years NZCU Baywide is a 100% New Zealand owned financial co-operative, owned by our customers. We have a long history of helping Kiwis with their everyday banking needs. Originally established in 1971, NZCU Baywide has grown to be one of the largest credit unions in New Zealand. While we may have grown in size our values have remained the same, we are not-for-profit and exist to help everyday Kiwis achieve their financial goals. *Terms and conditions and normal lending criteria apply. A $500 approval fee and other fees apply for home lending. NZCU Baywide is proud to be a credit union and not a registered bank. Adviser pack updated 1 June 2018

2 How to refer a home loan - online Not available in Greater Auckland and Hamilton City. The checklist below will ensure you include all necessary details so we can process the application and your commission payment as quickly as possible. Full applications that include a Sale and Purchase agreement will be prioritised over applications seeking a pre-approved home loan. Step one: the following details to enquiries@nzcubaywide.co.nz and cc in your BDM. Adviser s home loan application form and disclosure Bank statements of all accounts for the last 3 months Transactional statements of all debts for the last 3 months Sale and Purchase agreement Registered or rateable valuation - Refer to page 2 and 3 of the policy guide Proof of income - Refer to page 2 of the policy guide Photo or colour scan of applicant s NZ driver licence (front and back) nzcubaywide.co.nz

3 How to refer a home loan - in branch Lower half of North Island only The checklist below will ensure you include all necessary details so we can process the application and your commission payment as quickly as possible. Full applications that include a Sale and Purchase agreement will be prioritised over applications seeking a pre-approved home loan. Step one: the following details to your local branch, and cc in your BDM. Adviser s home loan application form and disclosure Bank statements of all accounts for the last 3 months Transactional statements of all debts for the last 3 months Sale and Purchase agreement Registered or rateable valuation - Refer to page 2 and 3 of the policy guide Proof of income - Refer to page 2 of the policy guide Photo or colour scan of applicant s NZ driver licence (front and back) or passport (including Visa if applicable) nzcubaywide.co.nz

4 Home loan policy - adviser s guide Use this policy as a guide when referring home loans to NZCU Baywide. If you are unsure about an application please call your BDM or local branch on Please note this is not an exhaustive list of the policy requirements. NZCU Baywide will lend to: Personal customers (i.e. not commercial entities or complex trusts) Applicants aged 18 years and over, NZ Citizens and Permanent Residents Applicants who live in NZ, who have a permanent visa i.e. expiry date of travel on their visa is indefinite. Applicants with a Credit Score above 250 Identification Photo identification is required a current NZ Driver Licence. A passport is acceptable but only when applying through a branch, not remotely. Credit check A credit check is required for every application. A privacy waiver covering each individual applicant and/or guarantor must be obtained. If an applicant s Credit Score is below 250 the loan is unlikely to be approved. For joint applications, the average of the two scores is used. Maximum loan term 25 years. Repayments Weekly, fortnightly or monthly. Loan purpose Owner occupied - maximum 95% LVR^ Investment property - maximum 60% LVR ^Refer to page 4 of the policy guide for maximum LVR/guidelines. Deposit criteria Deposit can come from savings, a gift or KiwiSaver. Next of kin All applications require name, address and phone details of two relatives or close friends who reside in NZ but are not living with the applicant. Policy guide page 1 of 4 Updated 1 June 2018

5 Home loan policy - adviser s guide Acceptable income and verification Income source Salary and wages (including bonus or overtime income) Seasonal workers Casual workers Government benefits (job seekers, sole parent, sickness, NZ super, ACC) Family Assistance (working for families, disability) Rental income Scaled at 75% Verification requirements Bank statements showing wages credited to account - a minimum of three most recent pay periods; or recent payslip confirming annual income; or most recent IRD tax assessment/return. A year-end payslip or two years tax statements. 12 months with the same employer and a tax summary showing 12 months history. Acceptable if it s clearly a permanent source of income. Acceptable for any children aged 12 or under. Evidence of regular payments to account. Unacceptable income: Student allowance Child support Irregular income Income received in cash Non-permanent benefits e.g. temporary accommodation supplement Shared expenses Where an applicant is in a de-facto relationship or married, the application is to include all joint liabilities (ie no halving of loans or repayments, the full liability is required). Supporting documentation Bank statements of all transactional accounts for the last three months Transactional statements of all debts for the last three months Income verification (in line with the table on the left) Completed Sale and Purchase agreement Satisfactory Registered Valuation if LVR is over 80% or a private treaty sale Boarder income Scaled at 50% Self-employed/ business income Evidence of regular payments to account (not cash). Boarder must not be a family member. Maximum of one boarder. If irregular amounts of rental or boarder income received the lowest amount is to be assessed. Last two years final accounts prepared by an accountant. For non true trading entities (e.g. IT contractor), IRD returns are acceptable for the past two years. Other requirements Life cover is required if the LVR is over 80% The applicant s income is required to be credited to an NZCU Baywide account if the LVR is over 80% Policy guide page 2 of 4 Updated 1 June 2018

6 Home loan policy - adviser s guide Security requirements Type and nature of security Maximum LVR Conditions - for assessment of valuation Owner occupied mainstream residential property 95% Lower of current registered valuer s report or purchase price (evidenced from a Sale and Purchase agreement). Rateable valuation acceptable where LVR <80%. Refer to page 4 of the policy guide for maximum LVR/territory guidelines. Mainstream residential investment property 60% Lower of current registered valuer s or purchase price (evidenced from a Sale and Purchase agreement). Rateable valuation acceptable where LVR <60%. Home loans interest rate matrix LVR% <80% % % % Credit score Base Interest rate (margin applied) NB: All investment property home loans have a maximum LVR of 60%. Where the investment property is the only lending through NZCU Baywide (ie the owner occupied property is not held as security) a minimum 2.0% margin above the carded home loan base rate will apply. This is a summarised version of NZCU Baywide lending policy. NZCU Baywide reserves the right to amend or introduce new policy requirements. Terms and conditions and normal lending criteria apply. A $500 approval fee and other fees apply. Policy guide page 3 of 4 Updated 1 June 2018

7 Owner-occupied home loans maximum LVR guidelines^ NZCU Baywide home loans are available through our adviser network in all areas, excluding Greater Auckland and Hamilton City. A maximum LVR of 95% is available within 20km of an NZCU Baywide branch or where the property is outside our branch territory the following LVR guidelines apply: Population: <1,500 Max LVR: 85% Population: 1,500-10,000 Max LVR: 90% Population: >10,000 Max LVR: 95% ^Final approval for maximum LVR will be at the sole discretion of NZCU Baywide and dependent on the individual property and further reports if necessary e.g. registered valuation and builder s report. Terms and conditions and normal lending criteria apply. A $500 approval fee and other fees apply. Policy guide page 4 of 4 Updated 1 June 2018

8 Case Study Application example - Approved Applicant: Manawatu couple with three children. After recently immigrating to New Zealand they wanted to purchase a lifestyle property near Palmerston North. They were declined by a main bank due to an 88% LVR. They earned a combined income of $80k, their NSR score was 70% and they had good credit profile and excellent account conduct. They had zero liabilities and a $15k limit on an unused credit card. Both had been employed for less than 12 months. Application: The application was for a home loan of $330k over 25 years, with a cash deposit from the sale of their previous home overseas. Result: The home loan approved as submitted. Terms and conditions included joint Life Insurance (existing policy assigned); Income Protection in joint names and whole-of-pay direct credited to NZCU Baywide account. Applicants have since purchased and moved into their own slice of Kiwi paradise in rural Manawatu. Terms and conditions and normal lending criteria apply. A $500 approval fee and other fees apply. nzcubaywide.co.nz

9 We are here to help Jane Riley Business Development Manager m: e: Andrew Webster Business Development Manager m: e: Online team Servicing home loans online e: ph: Your local branch visit nzcubaywide.co.nz for more details nzcubaywide.co.nz

10 Frequently asked questions - advisers Q. Does the customer have to visit a branch? A. No. If the customer lives in the vicinity of a branch they have the option of meeting with their lender to discuss the application and verify their identity (instead of the online process) but this is not mandatory, it is the customer s choice. Q. How will customer s identification be verified without visiting a branch? A. The Letter of Offer will include a link to an online application form that will require the customer to upload a photo/scan of their driver licence (front and back), a photo of them holding the driving licence, a bill or statement that shows their name, address and date and a photo/scan of their signature. Once this has been received, the customer will receive a quick call from our online team to confirm their identity. Q. How do I get a copy of your Net Servicing Ratio calculator? A. Contact your BDM to request a calculator or download it from here. Q. Are there any other conditions for a home loan? e.g. Life insurance and income protection etc A. There can be, this will depend on the application and will be looked at on a case by case basis. Q. Are we accepting home loan applications from investors? A. We will consider a home loan application from an investor with a maximum LVR of 60%. A minimum 2.0% margin above the carded home loan base rate will apply. Terms and conditions and normal lending criteria apply. A $500 approval fee and other fees apply for home lending. NZCU Bawide is proud to be a credit union and not a registered bank.