About NZCU Baywide. Our Focus. 100% Kiwi Co-operative Not-for-profit 40+ years. Products and Services. Channels

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1 About NZCU Baywide 100% Kiwi 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. Our Focus Products and Services Personal loans - debt consolidation specialists Home loans - focus on first home buyers Savings and investments Everyday banking services Channels Physical branch network in regional NZ (lower 1/2 North Island) Online loan servicing throughout NZ Third party referral network NZCU Bawide is proud to be a credit union and not a registered bank.

2 How to refer a personal loan - online The checklist below will ensure you send through all necessary details so we can process the application and your commission payment as quickly as possible. Step one: the following details to onlineloans@ and cc in your BDM. Adviser s personal 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 Proof of income - Refer to page 2 of the policy guide Step two: Ask the customer to complete the application using this link: They will need: Photo or colour scan of current NZ driver licence (front and back) Please make sure the picture, licence number and signature are clearly visible A bill or statement that shows their name, address and date Less than three months old A photo of the applicant holding their driver licence Photo or colour scan of the applicant s signature

3 How to refer a personal loan - in branch Lower 1/2 North Island only The checklist below will ensure you send through all necessary details so we can process the application and your commission payment as quickly as possible. Step one: the following details to your local branch, and cc in your BDM. Adviser s personal 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 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) Step two: Once approved the applicant will either visit the branch with their original ID for verification or use the remote link to verify their driver licence online (refer to step two of the online checklist).

4 Personal loans - indicative pricing Product Personal loans Risk profile Low risk Low/med risk Medium risk High risk PRICE %p.a % unsecured % unsecured % unsecured % unsecured Documentation requirements Three month bank statements Three months statements on debts repaid Other policy requirements In addition to above, all standard lending policy to apply (e.g. verification of income, security requirements, credit checks and account history checks) Note Pricing current as at 5 December 2016, subject to change. Terms and conditions and normal lending criteria apply. A $200 approval fee and other fees apply.

5 Personal loan policy - advisers guide Use this policy as a guide when referring personal loans to NZCU Baywide. If you are unsure about an application please call your BDM or speak to the online team on NZCU Baywide will lend to: Personal customers (i.e. not commercial entities or trusts) Applicants aged 18 years and over, NZ Citizens and Permanent Residents Applicants who live in NZ, who have a permanent visa: 1. If the expiry date of travel on their visa is indefinite, there is no restriction on the loan term 2. If there is an expiry date of travel on their visa, the loan term will be limited to this expiry date Applicants who have been discharged from an insolvency procedure for more than two years (i.e. Summary Instalment Order, Bankruptcy, No Asset Procedure) 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 Veda Score is below 250 it is unlikely to be approved. For joint applications, the average of the two scores is used. Maximum loan term 5 years is our base policy but talk with us if there are mitigating circumstances to extend beyond 5 years. Net Servicing Ratio NSR maximum 100% (loans up to $35,000) NSR maximum 90% (loans $35,000 and over) Minimum loan amount Minimum loan amount is $2,000. Loan purpose NZCU Baywide will lend for most purposes, excluding payment of unpaid fines or clearing of current defaults. 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. Page 1 of 2

6 Personal loan policy - adviser s guide Acceptable income and verification Income source Salary and wages (including bonus or overtime income) Seasonal workers 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. 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). Casual workers Government benefits (job seekers, sole parent, sickness, NZ super, ACC) Family Assistance (working for families, disability) Rental income Scaled at 75% Boarder income Scaled at 50% Self-employed/ business income 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 children of any age. Evidence of regular payments to account. Evidence of regular payment to account (not cash). Boarder must not be a family member. Maximum of one boarder. Last 2 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. Supporting documentation Bank statements of all transactional accounts for the last 3 months Transactional statements of all debts for the last 3 months Income verification (in line with the table on the left) Other requirements For vehicle loans, the applicant must hold a restricted or full driver licence Life and disability cover required in some instances Full insurance, with the interest of NZCU Baywide noted on the policy, is required when an asset will secure the loan Personal loans $35,000 and over Applicant must be in permanent employment for at least 12 months and a current payslip is required Maximum NSR of 90% and other conditions 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 $200 approval fee and other fees apply. Page 2 of 2

7 Case Studies Example 1 - Approved Applicant: Christchurch couple, both aged 28 years old with one child aged 6. They were wanting to consolidate debt and pay for home improvements. Their main bank had declined the application as it was sitting at 87% LVR and they didn t want to pay for a registered valuation. They earned a combined income of $120k. Their NSR was strong at 67% and they had a good credit profile. A 2013 vehicle valued at $28k was offered as security. Application: They applied to consolidate $19k of debt from Visa and MTF, at an average rate of 18.5%p.a. and conduct $20k worth of home improvements. Result: A secured personal loan of $39k was approved at 9.9%p.a. over 5 years. The couple can clear their short term debts and make improvements on their house that will no doubt add value. As a result of the referal, the adviser received $1,560 paid within a week. Example 2 - Approved Applicant: Auckland couple, aged 25 and 29 years old, with two children aged 3 and 1. They were looking to improve their financial position to help them on the path to home ownership. Their combined income was approximately $83k, a Net Servicing Ratio of 85% and a strong credit profile. They also had a 2013 vehicle to offer as security. Application: They applied to consolidate two personal loans at above 15.9%p.a. and a maxed out credit card at 23.9%p.a. Result: Our team uncovered another personal loan at 13.95% and offered to consolidate a total of $33k into a secured personal loan at 13.90%p.a. over 5 years. The couple are thrilled with the results and happy to now have only one loan payment to manage at a minimum rate. As a result of the referral, the adviser s anticipated commission of $360 grew to $1,320, paid within a week. Terms and conditions and normal lending criteria apply. A $200 approval fee and other fees apply.

8 Case Studies Example 3 - Approved Applicant: A Northland couple with 2 dependent children. Dad worked full-time and mum was a stay at home mum. The couple were looking to consolidate short term debt to free up servicing for a future home loan. Their combined income was approx $64k. Their NSR score was 85% and they had a good credit profile. They presented well with excellent account conduct and debt repayment history. Application: They applied to consolidate a personal loan at 15.95%p.a., a Visa at 25.45%p.a. and additional hire purchases. Result: An unsecured personal loan of $37k was approved at 15.9%p.a. over 5 years. Debts have now been repaid and the customers are very happy to have one easy repayment with future home ownership in their sights. As a result of the referred loan the adviser received a commission payment of $1,480 paid within a week. Example 4 - Approved Applicant: A Hamilton couple, aged 25 and 32, with children aged 4 and 7. They have received regular income from wages and a border for at least 2 years and pay rent of $350pw. Their NSR score of 92% was quite high and their credit profile wasn t great due to 2 defaults that have since been paid and several enquiries while they were shopping for a home loan. They have $20k in KiwiSaver. Application: Initially they applied with the broker for a home loan but were declined due to affordability. They then applied for a personal loan to consolidate $28k of debt at an average rate of 22%p.a. Result: An unsecured personal of $28k was approved at 19.90% over 5 years. The customers are aiming to pay it within 3 years by adding lump sum payments as their border income is received and are enjoying the benefit of no early repayment penalties. Home ownership is now clearly within reach. As a result of the referred loan the adviser was paid commission of $1,120. Terms and conditions and normal lending criteria apply. A $200 approval fee and other fees apply.

9 Testimonials I would like to acknowledge and thank NZCU Baywide for the exceptional service and support to both my business and the customers that I have presented and referred to them over the last 7 years. Through your dedication and looking outside the square we have been able to assist people with buying their first home and tidying up their financial position. I would happily continue to refer and present other proposals to you. Mark Davenport, Mortgagesure Talking with Graham from NZCU Baywide has helped me find an opportunity to double my commission earning opportunity from my clients. Looking at debt consolidation options has given me an extra income option which has helped me in my early stages of business. The team have been very helpful and offer a quick turn around on deals that I have submitted. I have found commissions paid weekly has been incredibly convenient. The low rates on personal loans has also been a very attractive option for my customers and I have had several successful deals settled since I started my business late in Matthew Hooper, Mike Pero Mortgages With their quick turnaround times, great products and great commissions the team at NZCU Baywide have become an integral part of my business. The product offers from NZCU Baywide have helped me help my clients so that my clients are able to achieve their financial goals. The competitive rates and fees offered by NZCU Baywide makes it an easy discussion to have with clients once a need to consolidate debt has been identified. It s a win for the clients through better rates and easier management of debt and it s a win for my business with good regular commission income! Matt Kensington, Mortgagelink Terms and conditions and normal lending criteria apply. A $200 approval fee and other fees apply.

10 We are here to help Graham Clarke Business Development Manager m: ddi: e: Jane Riley Business Development Manager m: e: Online Team Servicing personal loans online e: ph: Your local branch visit for more details