Manual Servicing Calculator

User Manual

Training guide v1.0

Important: Before you start

The MyState loan calculator is a Microsoft Excel Template.

A template is very useful as it allows you to create as many fresh (blank) calculators as you

need without ever having to worry about saving over the original nor an existing calculator.

With a template you can select ‘New’ then ‘Loan Service Calculator’ from ‘My Templates’ to

open up as many fresh copies as required:

Or simply double-click on the file (from your desktop or file explorer) to open fresh ‘blanks’:

Refer to Appendix I at the back of this document for the one-off first time setup of the

template.

Manual Servicing Calculator

As you will see we have made a major overhaul to the manual servicing calculator in relation to

inputting the information.

There is no change to the calculation or to the look of the calculator when printing.

The following gives a run through of the information required when using the new calculator.

1. First step is to make sure that you enable the Macros so that you are able to move between

calculators if required.

2. If you ‘hover’ the mouse over the information symbol at the top of the page you will see an

index showing what the different colours mean.

There are also information symbols listed for most fields which give an indication of what is

required to be input.

3. Down the left hand side of the page you will notice some numbers that are in grey when the

calculator is first opened. These numbers correspond to the progress in each section of the

calculator and shows when each particular section has been completed satisfactorily. This detail

is also reflected in a summary at the base of the calculator.

Clicking on the summary indicators will take you to the selected section:

Information Icon to show menu

You will also note that at the bottom of the page you will still see the Serviceability results which will

indicate if the loan ‘passes’ or ‘fails’ servicing

There are various assessment ratios that are required including the times cover and surplus

amounts.

Underneath this area the maximum borrowing amount will be displayed as well as shortcuts to

various other calculators or websites.

There is also a tick box at the bottom which will open up the ‘classic view’ of the calculator which is

the current calculator showing all of the information that has been entered. This is not able to be

edited and if you realise there needs to be changes these can only be made through the front cover

sheet.

Progress summary

Servicing results – with

explanations if failed

Ratios and times cover

Shortcuts to other calculators

To access ‘classic view’

SECTION 1 – APPLICANT DETAILS

The first section requires the applicants’ details including dependants, marital status, postcode and

also the household for expense purposes.

4. The application is automatically set with one applicant. To add additional applicants you need

to click on the icon next to add applicant. This will bring up the second applicant and also if

required the option to add the third and fourth applicants.

5. If you add a more than one applicant you will need to complete the ‘household’ information for

expenses as different calculations occur if living at different addresses.

Hint: If you are using a married couple and under applicant 1 you indicate they are a couple with

applicant 2 then the details for applicant 2 automatically open.

6. If applicants live at different households you will notice that each applicant is shaded a different

colour where if they’re in same household each applicant has the same background colour.

7. Once you have completed the applicants’ details you will be able to move to the second step.

This is shown when the progress line shows section 1 in green. (If you scroll to the bottom of

the page you will also notice that in the progress summary number 1 has now turned green)

SECTION 2 – PROPOSED NEW LOANS

This section is where we are able to indicate the type of new loan that the applicants are applying

for. There are choices for:

Owner Occupied – 2 splits

Investment – 4 splits

COH Line of credit

Overdraft – only available to MyState retail lenders

Personal Loan – only available to MyState retail lenders

8. Once you select the required loan type and splits you will need to complete the details for the

new loan. The details required are:

Property value

Off the plan

Loan amount

Type of loan (variable or fixed)

Property security type

Postcode

Loan term

Interest only term (if applicable)

Interest rate

9. If you require additional security there is a tick box which will bring up more details and you can

add the additional security and any associated debt to ensure the LVR is correct for the

application.

Select required loan types

10. If you are completing both and owner occupied loan and an investment loan and are using just

the one security the calculator will bring up details asking for a second property value.

In this instance you will need to add the property value as 0 to ensure that the correct LVR is

calculated – see second screenshot below

11. If you select the COH Line of credit and this is a stand alone product, the additional security

section will be shown and will be required to be completed to obtain the LVR.

New Loan Details

Final LVR

Additional Security

Property value

2nd value listed as Nil

SECTION 3 – INCOME DETAILS

The same income details are entered as per previous calculators with access to include:

Base – required for all applications ($0 to be input if no base income provided)

Rental Income

Overtime

Company profit/loss

Commission

Bonus/Dividends

Other

12. Income details for ‘Rent’, ‘Overtime’, ‘Company profit’ and ‘Other’ are input as the total value

under each applicant if applicable. When you open ‘Bonus/Dividends’ and ‘Commission’ you will

be prompted to enter the details in the boxes below.

As we require 2 years worth of details for these income types we have automated the system so

that you need to enter ‘Last Years’ amount and then the “Previous Years’ amount and the

correct amount will then be transferred to the income box.

Non Taxable Income can also be loaded with options available:

Business Addbacks

Family Assistance

Pension

Other

Car Allowance (Automatically allocates $5,000 for each applicant if applicable)

Next step is to complete the financial commitments. These are loaded as monthly amounts.

Enter 2 years Commission

Enter 2 years Bonus

Base income must be

completed including Nil

Commission and Bonus

populated here

SECTION 4 – EXISTING LOANS

13. The first question asked is ‘Existing Mortgage Loans’. If the answer is ‘No’ you move onto the

next question but if the answer is ‘Yes’ then you will need to input how many loans the

applicant has to open up the required information boxes.

As per current requirements the information required depends on the type of loan (P&I or I/O)

and whether a MyState loan or OFI. The information required is:

Loan Purpose

Loan Type

Which applicants are associated with the loan

The loan provider

The loan amount

The repayment amount

Initial Loan Term

Initial Interest Only term

Current Interest Rate

Once completed the progress bar will show green for section 4.

SECTION 5 – OTHER COMMITMENTS

Other commitments relate to any other lending that the applicants may have such as:

Personal Loans

Credit Cards

Overdrafts

Unsecured Lines of Credit

Secured Lines of Credit

If the applicant have no other loans then uncheck the tick box which will complete section 5.

If they do have these types of loans then complete the details as required.

Uncheck box if no commitments

or loans held

SECTION 6 – LIVING EXPENSES AND OTHER MONTHLY COMMITMENTS

14. These need to be completed for all households and must also include ‘Nil’ inputs to have the

correct calculations completed

The categories have altered slightly as there has been an update from LendFast and we have

aligned these to make recording easier.

The main change is that motor vehicle costs now will be entered under ‘Other Living Expenses’

and there is a category for ‘Medical and Health’ to cover doctors fees, pharmacy costs etc.

You will also need to state the number of properties owned by the clients as this is an indication

if they have allocated enough expenses to cover all properties costs such as rates and

insurance. This should also include the property they are purchasing.

We have separated owner occupied property and investment property expenses with the

owner occupied included as part of living expense and the investment property expenses as a

separate figure outside of living costs. Property costs such as rates, insurance, property

management fees, body corporate fees, maintenance need to be included.

You will also need to tick the check box as to whether the applicant has ‘Private Health

Insurance’. If this is not checked and they are liable for Medicare surcharge an estimate for this

amount will show further down the page. If you confirm that applicant does not have private

health and is liable for Medicare surcharge this amount is to be input to the box above the

estimate.

If required you will also need to input rental expense or notional rent

Number of properties owned by

applicants including new

purchase if applicable

Investment property expenses

listed separate to owner

occupied

Medicare surcharge estimate if

applicable (no private health

noted) to be input

SECTION 7 – VALIDATION OF EXPENSES

Confirmation of expenses is vitally important as to whether an applicant is able to afford the loan. To

ensure we have completed our due diligence we are now required to complete two validation

questions. Until these are completed the servicing calculator will not be finished and provide a

result.

The two questions are:

1. Expenses were validated:

Via a budget management tool

Via bank statements

By customer conversation

2. Can you confirm you have made reasonable inquiries and taken reasonable steps to verify all

borrowers living expenses

Yes

No (if No is chosen, a justification must be provided in the appropriate field)

SERVICING POSITION

After completion of the calculator and all information has been loaded the calculator will show the

serviceability results.

If there is any information missing or section not completed the Progress summary will not be all

green and the incomplete sections will still be grey. You will need to complete these sections before

obtaining a final outcome.

Passes Servicing

If all information is loaded and the details meet all of our policies then the progress summary will

show all green and the servicing result will state ‘Passes Servicing’

Fails Servicing

If the application fails then an error message may appear detailing what section of policy that the

deal does not meet.

If there is an error message and you know the information loaded was incorrect you can return to

that section and update the information.

Message indicating policy

requirement if servicing fails

Additional Hints:

If any of the sections are not completed the progress summary for that section will show as

grey and not have been updated to green as complete

If you need to go back to any section (either not completed or requires changes) you can click

on the required section number within the progress summary and you will be taken

automatically to that section

If you answer ‘No’ to the second expense validation question you will not be able to proceed

until you have completed the justification box on why you have not made reasonable

inquiries into their expenses. If you move to complete/change other sections you will be

taken back to the justification box.

If you are utilising one of the attached calculators, please complete the information required

and then to go back to the servicing calculator click on the ‘House Icon’ which will take you

back to the same place in the main calculator. The information from the additional

calculators will not be transferred to the main calculator.

Appendix I

Setting the calculator up as a template (one off – first time setup)

1. Open the calculator

2. Before enabling content, select ‘Save As’

3. Enter %appdata%\Microsoft\Templates into the address bar and press enter:

4. This will take you to your Templates directory:

5. Enter a Filename if necessary (eg. Loan Service calculator - MyState Bank) Select Save

6. Click ‘Enable Content’ and ‘Save’ and you’re done

You can now click ‘New’, ‘My Templates’ and open a fresh calculator anytime.

If the above doesn’t work, don’t worry, you can just save a copy of the calculator to a convenient location

(eg. Your desktop) and simply double click the icon to open a fresh calculator anytime.