Home Loan Pricing Tool User Reference Guide...1 Home Loan Pricing Tool –User Reference GuideThis document outlines hints and tips on the best way to use the Home Loan Pricing Tool

1

Home Loan Pricing Tool – User Reference Guide

This document outlines hints and tips on the best way to use the Home Loan Pricing Tool (HLPT) to ensure you get the

right price for your customer, all in the one request.

Some of the things you’ll find in this guide are:

FAQs are also available on CommBroker.

Page(s) Contents

2 – 4 Highlights and features of each section of HLPT

5 – 6An end-to-end example of a pricing request:

o A new customer with 2 new SVR applications

7 Tips on finalising and progressing your pricing request

8 Pricing approval document

9 – 14

Other scenarios to request additional discounts on:

o A new variable / fixed split home loan

o An existing SVR and VLOC

o A top up of an existing SVR

o New and existing SVRs

o A split of an existing SVR into variable and fixed

2

Sections of the tool – Home page

725690 Jane Smith 24 June 2016, 2:50 PM Amendment required

725685 Jenny Jay 24 June 2016, 1:11 PM Offer – please review

725689 Aaron Cotton 24 June 2016, 10:02 AM In Progress

725687 Ben Shoo 23 June 2016, 5.33 PM Amendment Required

725691 Linda Lee 23 June 2016, 4.31 PM Accepted

725686 Ethan Smiths 22 June 2016, 9:45 AM Rejected

725684 Bob Montgomery 22 June 2016, 9:33 AM In Progress

725384 Steve Cooper 22 June 2016, 8:31 AM Accepted

725401 Ku Le Lay 21 June 2016, 2:54 PM Amendment required

Customer names can be found

in your home page, to allow you

to quickly search for your

customer’s request.

Request statuses are clearly named so you know what next

steps to take to progress your request.

For example, ‘Amendment required’ means you will need to

change something in your request in order for it to be actioned.

Quick access to this user reference

guide through the tool, if you require

assistance.

Search up your requests through any of these criteria,

including the customer name.Create a new

request here.

3

Submitting a new request – Customer details

What are you requesting? This question

let’s you choose between a rate discount for

Package products, or a fee waiver / rebate,

or both.

HLPT will only ask you for information related

to what request option you have selected.

Select whether this request is for an

individual or company/entity Package

holder. Separate requests must be submitted

for separate Package holders.

4

What if…Submitting a new request – Request details

Advertised rates for each

Package product that you

request a discount for is

displayed on the screen, to

assist you in requesting

the right discount for your

customer.

Check the ‘indicative final

rate’ to make sure that it

aligns with what is being

requested.

Include all your customer’s

loans which require further

discounts in a single,

easy-to-use table.

Your customer’s total

home lending balance is

calculated on the screen,

based on the new / existing

/ other home lending

balances that you enter in

the request.

Additional field to enter any other CBA

home lending balances that the customer

owns solely or jointly, which are loans that do

not require or are ineligible for any additional

discounts

For example, a customer may have an

existing fixed rate, which does not mature yet

– include its balance here, as it contributes to

your customers total lending view.

Submitting a new request – Further information

Supporting documents can be added here

if available.

Comments and history of the request is found at the

end, where you can include more details about your

customer, the loans, any competitor offers etc.

You will also find the Pricing team’s comments here, if

they require more information from you.

Fee waivers / rebates can be

requested in this last section of the

tool.

Select the fee waiver or rebate and

input the amount requested to be

waived. Enter the related account

or application number, if available.

5

Over the next two pages is an illustrative example of how to request additional discounts for this scenario, as well as how to finalise the

request.

Fill out the customer’s details, and select ‘Rate discount’ when asked What are you requesting?

In the next section, you will need to enter details related to the two applications in the Products table. Make sure you click on the after each row.

My customer, who is new to CBA, is refinancing from another bank. She has two home loan applications, for two new

SVR loans (one is Owner Occupied for $540k, another is Investment for $680k).

Scenario 1/6: new customer with 2 new SVR applications (part 1/2)

A

B

Ensure that the Owner

Occupied (OO) and

Investment (IHL) loan types

are selected correctly

EThe advertised rates for each

product will pre-populate as you enter

the ‘Discount requested’ – this will

then calculate the indicative final

rate for each loan

F

The two

applications’ new

lending balances

have been

summed up here

for you

G

This is the base LVR, exclusive of

LMI premium

I

Total new lending balance

$1,220,000

Total existing lending balance

$

Total home lending balance

$1,220,000Make sure the total home lending

balance is correct

H

Click ‘Next’ and enter any supporting comments in

‘Further information’, then click ‘Submit’.

J

See how to finalise this request on the next page.

You can include

both applications in

the one request

C

Make sure the new lending

balances for each loan match

to what is in the application

D

Click this to

add a loan

Click this to

delete a loan

MAV Package

6

Once you have submitted your pricing request, you will either get an instant pricing decision, or you will receive notification (via email)

that a decision has been made.

Access the request and review the decision.

My customer, who is new to CBA, is refinancing from another bank. She has two home loan applications, for two new

SVR loans (one is Owner Occupied for $540k, another is Investment for $680k).

Scenario 1/6: new customer with 2 new SVR applications (part 2/2)

Any comments from the Pricing Team can be

found on the left hand side of the Comments

and history section – please review them in

conjunction with the pricing decision.

N

[email protected] 0411875220

L If you have had a discussion with your

customer, and choose to accept the

discount that is approved, you will need to

enter the discount for each loan that you

have included in the Products table within

the request. Then click on .

M

See the next page for more information on progressing your request.

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If you choose to…

If you see…

• An accepted discount must be

entered next to each loan

• Once the request has been

accepted, you will not be able to

go back into it to amend it – a

new request will be required

• You must provide additional

information in the Comments &

history section to support your

appeal

• Then click on the ‘Escalate’

button

• You will be able to escalate a

request up to two times

• Click on the ‘Decline’ button if

you no longer want to proceed

with the approved discount.

Click on ‘Submit’ after you

have made your amendment.

C

Read through the Pricing

Team’s comments /

instructions, and make the

relevant changes to progress

your request.

B

If you see this status next to a

request that you recently submitted,

click on the Request ID.

A

See pages 9-14 for more scenarios and how to enter them in the tool.

8

Pricing Approval Document

Total new lending refers to the

new application(s) balances

this will be $0 when there are no

applications in the request.

Discounts approved are already

inclusive of Package discounts. For

example:

1.20% = 0.70% (Standard Package

Rate) + 0.50% (additional discount)

This pricing offer is valid if the loan

application has been approved in

principle prior to this date. You will

need to image this document to the

application.

Please note, these types of loans are

not eligible for discounts and

therefore cannot be included in the

account section of the request, unless

a switch request is completed.

Remember, existing loans will only

have the discount applied after the

related new loan settles.

It is highly recommended that you

include all new and existing loans that

require additional discounts in the

ONE request.

Jane Smith

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Appendix – more scenarios

Page Requesting additional discounts on:

10 A new variable / fixed split home loan

11 An existing SVR and VLOC

12 A top up of an existing SVR

13 New and existing SVRs

14 A split of an existing SVR into variable and fixed

10


$620,000

Wealth Package


$620,000

Below is an illustrative example of how to request additional discounts for this scenario…


In the next section, you will need to enter details related to the application in the Products table. Make sure you click on the after each row.

My customer, who is an existing CBA customer, is applying for a home loan for the first time. He would like to split his

loan between variable and fixed rate, but is unsure of which loan term. He would like to split $320k as variable and

$300k as fixed, and wants to know what discount can be offered on a 2 Year and 3 Year Fixed Rate, to help him decide.

A

B


LMI premium

H

MAV Package


$0

Make sure the total home lending

balance is correct and matches

the application total of $620k

G

• Enter one row for the 2 Year Fixed Rate, and split the

new lending balance in half ie $150,000.

• After you fill and add the details for this row, enter

another row for the 3 Year Fixed Rate, and input the

other $150,000.

See ‘F’ for more information.

D

If your customer is a

Homeseeker, select ‘Yes’

E

Scenario 2/6: existing CBA customer, applying for a new variable/fixed split home loan

You can include

both SVR and

Fixed Rates

requests in the

one table

C

You need to ensure that this Total new lending

balance for this scenario is the application

balance of $620k – this is why you need to split

the Fixed Rate new lending balance into two

rows of $150k each

F

MAV Package

11

Scenario 3/6: existing CBA customer with an existing SVR and VLOC




My customer has an existing SVR account, with a balance of $360k, and VLOC account, with a limit of $296k. She

would like additional discounts on both accounts. She also has an existing 2 Year Fixed Rate of $350k, which is 1 year

away from maturity and therefore is not eligible for any additional discounts.

A

B

You can include both SVR

and VLOC requests in the

one table

Refer to ‘G’ for what to do

with the existing Fixed Rate

Any other CBA home lending balance is a field

available for balances of other home loans that the

Package Holder owns, which do not require additional

discounts

In this scenario, the existing balance of the 2 Year Fixed

Rate needs to be included here, as it contributes towards

your customer’s Total home lending balance

G

C

Make sure the total home lending balance

is correct, which for this customer is the sum

of all 3 existing home loans

H

Check that this Total existing lending balance

for this scenario is correct for the two accounts

that you entered in the table above

F


$650,000


$650,000

Select ‘Existing account’ for both and

enter the existing balance (including

redraw) for the SVR and the existing

limit for the VLOC

D If there’s a competitor offer,

ensure that it is for a

comparable product type

E

MAV Package

12




My customer has an existing SVR account that he would like to top up with $150k, and is requesting additional

discounts.

Scenario 4/6: existing CBA customer topping up an existing SVR

A

B

The total home lending balance for this

customer is the sum of the existing loan and

the new top-up amount


$260,500


$410,500


$150,000

F

Select ‘Acc/App – top up’ for this

scenario, and enter the current

account number for the loan that is

being topped up

Enter $150k as new lending for the

top up amount, and enter $260.5k as

the existing lending balance of this

loan

You will have both a new and an existing

lending balance total – make sure these

amounts match to your top-up application

E

C

D

MAV Package

13


$400,000




My customer has two existing SVR accounts and is looking to apply for a new SVR home loan, of $400k. She would like

to negotiate additional discounts across these three SVR accounts. She also has an existing 3 Year Fixed Rate of

$350k, which is 2 years away from maturity, and will not be repriced.

Scenario 5/6: existing CBA customer with new and existing SVRs

A

B


LMI premium

H

Make sure the total home lending

balance is correct and matches the

customer’s profile

GTotal home lending balance

$1,740,600


$990,600

Any other CBA home lending balance is a field

available for balances of other home loans that the

Package Holder owns, which do not require additional

discounts

In this scenario, the existing balance of the 3 Year Fixed

Rate needs to be included here, as it contributes towards

your customer’s Total home lending balance

F

To ensure the right discount is approved and

applied to all ‘Existing accounts’ when the ‘New

application’ funds, you will need to include all

loans in the same request

C You will be able to request

different discounts for different

loan types

D

You need to ensure that this Total new lending

balance for this scenario is the application

balance of $400k – this amount will appear in

the offer document if you choose to accept the

discounts approved

E

MAV Package

14


$0




My customer would like to split his existing SVR account of $1,200,000 and switch $500,000 into a 3 Year Fixed Rate.

Scenario 6/6: existing CBA customer, splitting an existing SVR into variable and fixed

A

B


LMI premium

F

For the switch portion of this scenario, select

‘Product switch’ and enter the Switch

application number.

C


$1,200,000


$1,200,000

Regardless of the actual split that your customer is

after, you need to make sure that the total home

lending balance sums up correctly and matches the

customer’s profile as $1.2m

E

Enter the balances of each split,

ensuring that it sums to the $1.2m total.

See ‘E’ for more information.

D

MAV Package

Documents

Home Loan Pricing Tool User Reference Guide...1 Home Loan Pricing Tool –User Reference GuideThis document outlines hints and tips on the best way to use the Home Loan Pricing Tool