The Australian Banking Code of Practice requires Banks (and the broker) to answer some questions to establish that co-borrowers are receiving 'substantial benefit' from being a party to the loan as a Borrower (as compared to a Guarantor).
The Co-Borrower questions can be found in Broker Interview section of the Compliance Tab:
For each applicant, you will need an select from 3 answers to establish the level of 'benefit' that applicant is getting from being a party to the loan. Advantedge have deemed 'substantial benefit' is where the applicant will get use of at least 25% of the loan funds:
Answer Choice 1: The applicant will receive substantial benefit from the loan funds.
If you select this option, you will then have to select how the applicant will receive the substantial benefit:
Answer Choice 2: The applicant will not receive substantial benefit from the loan funds but have confirmed they still wish to be a co-borrower.
If you select this option, you will then have to confirm that there is no financial abuse of the applicant:
Answer Choice 2: The applicant will not receive substantial benefit from the loan funds and do not want to proceed
If you select this option, you will then be prompted to revisit the loan information/structure. You will not be able to submit the loan with the current structure/co-borrower answer:
The Broker Interview Guide Print Form
Whatever information you capture in the Co-Borrower Assessment will be auto-populated onto the Broker Interview Guide in section 4.5.2 Co-Borrower:
Get in touch on Live Chat if you have any questions about the Co-Borrower section.