Westpac, St George and other members of the multibrand group have introduced changes to the way interest-only home loans for owner-occupiers and self-managed funds are assessed."These changes will help us continue to meet our regulatory requirements and apply responsible lending practices in assessing a customer's ability to service existing and proposed debts," St George Bank said in a note to brokers yesterday, explaining the changes.Other changes announced during the week include the note (on 26 June 2017) that the maximum interest only repayment term will be reduced from ten years to five years.A minimum SMSF fund balance of $200,000 is to be demonstrated upon application. "There are no exceptions to this requirement," the bank advised its brokers.The group has reflected these changes on its various multibranded websites. For example, St George Bank's application criteria and processes include the advice that, effective from 30 June 2017, St George will be adjusting the following variable home loan rates: owner occupiers with variable rate principal and interest home loans will receive a reduction of eight basis points to 5.22 per cent annually (with a comparison rate of 5.39 per cent, based on a loan of $150,000 over a term of 25 years). owner occupiers paying interest-only variable rate home loans will experience an increase of 31 basis points to 5.81 per cent per annum (comparison rate 5.97 per cent). residential investment interest only variable rate home loans will increase by 34 basis points, to 6.32 per cent per annually (comparison rate 6.48 per cent).Additionally, from Saturday 1 July 2017, in order to switch or split repayments from principal and interest to interest-only or extend the interest-only term on a loan, a serviceability assessment and income verification documents will now be required to be completed and assessed by the bank. This option is not available for completion by the mortgage broker.