Kath's Credit Crunch Monday 17th November

📣 Westpac Group (inc Bank of Melbourne, BankSA, StGeorge)

📘 HELP / HECS – Study and Training Support Loan (STSL) repayments

Customers with a Study and Training Support Loan (STSL) may now have their STSL repayments excluded from serviceability calculations, subject to meeting eligibility criteria.
Effective Monday 24th November.

🧾 What you need to do

✨ Enter relevant information on the commitment into the Broker Serviceability Calculator to determine if the repayment period meets eligibility.

✨ Check your customer meets the following eligibility criteria and record in AOL:
 • They must not be currently studying and adding to their STSL debt
 • Their current STSL debt will be fully repaid within 12 months from application submission

✨ Collect an STSL loan statement from the customer (via ATO or MyGov).

🟦 SMSF Serviceability

✨ No self-employed time-in-employment requirement for SMSF entities (including Corporate Trustees).

✨ Reduced verification when SMSF income isn’t used. Only required:
 • Super Fund Lookup search
 • Contribution details

✨ Simplified verification when SMSF income is used (latest tax return or audited financials).

✨ Applies to all PAYG or self-employed customers who hold an SMSF.

✨ Include SMSF details in AOL notes to avoid MIRs.

✨ Time-in-employment rules & SSC no longer required for SMSF entities.

✨ When using SMSF income or contributions in servicing → obtain latest tax return or audited statements.

🟦 Self-employed – non-operating entities

✨ Customers may now provide a declaration confirming non-operating entities.

An entity is “operating” if it has:
 • Income or turnover
 • Expenses
 • Liabilities

✨ Identify all entities (including those shown on Access Seeker).

✨ Confirm which entities are operating vs non-operating.

✨ Document non-operating declarations in Broker Notes.

✨ Enter all entities into AOL for correct processing.

🏗️ Construction Loans – Australian Government 5% Deposit Scheme

✨ Maximum loan term increased from 28 → 30 years.
✨ 30-year term now selectable in AOL.

💙 Bluestone

🚀 Launch of Resi Construction, Small Commercial & Commercial SMSF products

🏡 Resi Construction Loans

🔹 Borrower Type: Prime & Near Prime (Full & Alt Doc) – no owner-builders or related builders
🔹 Max Loan: Up to $3M
🔹 Max LVR: 80% (on-completion valuation)
🔹 Security: Metro only
🔹 Loan Term: Up to 30 years (incl. construction period)
🔹 Repayments: IO during construction → P&I post-completion

Requirements:
 • Valid DA/BA approvals
 • Fixed-price builder contract
 • Registered third-party builder
 • Home warranty & builder’s risk insurance before commencement

🏢 Commercial Loans

🔹 Borrower Type: Prime & Near Prime (Full & Alt Doc) + SMSF
🔹 Max Loan: Up to $3M
🔹 Max LVR:
 • Metro: 80%
 • Non-Metro: 75%
🔹 Security: Offices, warehouses, retail, light industrial, mixed-use
🔹 Loan Term: Up to 30 years
🔹 Lease review required for full-commercial leases

Acceptable Securities:
 • Strata office suites
 • Small warehouses
 • Retail shops
 • Light industrial units
 • Mixed-use premises

Not acceptable: pubs, nursing homes, development stock, construction sites.

📘 Commercial SMSF Loans

🔹 Borrower: SMSF Corporate Trustee (non-trading)

Loan Amounts:
 • Metro: $3M commercial / $1.5M residential
 • Non-Metro: $3M commercial

Guidelines:
🔹 LVR: Up to 80%
🔹 Loan Term: 10–30 years (IO up to 5 years)
🔹 Purpose: Purchase or refinance
🔹 Acceptable security: Multi-use or light-commercial only
🔹 Servicing: Rental income + concessional contributions

Requirements:
 • Full SMSF & Security Trust Deeds
 • Audited financials
 • Lease documentation

🧡 Bankwest

✨ Valuations must be ordered upfront via the Valuation Tool before lodgement.
✨ After submission, the Valuation Reference number must be linked in the Application Details screen.

💜 Beyond Bank

✨ Temporary pause on pre-approvals due to high demand.
✨ No pre-approval applications accepted if no contract of sale exists.
✨ Applies to all application types.

🖤 ORDE Policy Updates – November 2025 (Residential & Prestige)

✨ Maximum Residential LVR increased from 80% → 85%.
✨ Full Doc & Alt Doc (Prime only).
✨ Available for Owner-Occupied and Investment loans.
✨ 85% max loan amount: $1.75M.

🌉 Why Brokers Avoid Bridging (…and why you don’t have to anymore!)

Let’s be honest, bridging finance has always been the thing that makes even the most seasoned broker twitch. It’s clunky. It’s confusing. It’s one of those scenarios where everyone gets overwhelmed both you, your client, AND the bank’s poor assessor.

But… NOT ANYMORE. Because this week, something very cool happened.

🚀 Introducing Apollo Next, LMG’s reimagined Bridging Finance solution (co-created with Brokers!)

Brokers… I’m not joking…
You’re going to LOVE this.
Like, actually love it.
Yes — even you, the one who squirms when someone whispers “bridging.”

🎥 Watch the 1-min video and see how Apollo Next changes everything. It’s bridging…but finally done properly.

🌟 Why Apollo Next is a Total Game Changer

💡 1. A category-defining modelling tool to demonstrate different scenarios!

Powered by real-time PropTrack data ,so no more guesswork. Compare pathways instantly:
• Buy first
• Sell first
• Keep both
• Same-day settle
All with clear, client-friendly outputs.

💰 2. Bridging finance you actually get paid for

(Yes. Really.)

🧮 3. Serviceability assessed on END DEBT, not peak debt

Game-changing clarity. Capped interest. Massive win for clients.

🏡 4. No need for a contract of sale before lodgement

This one alone will soothe 90% of your bridging anxiety.

📈 5. Borrowing power just got way more flexible with only 5% valuation shading and higher LVR's!

• Up to 80% LVR without a contract of sale (plus capped interest!)
• Up to 85$ LVR with executed contract of sale

⏱️ 6. 6–12 month terms with multiple properties allowed

Because real life is messy and bridging should adapt , not restrict.

🔍 7. No end Debt Acceptable 

Great for Down-sizers!

🔄 8. Selling an investment property? No worries!

Clients can sell their investment properties, or multiple properties to buy their next home!

📝 9. Lodge one loan application

Because nobody needs extra admin. Ever.

🎉 Brokers, this is bridging… without the headaches.

Apollo Next isn’t just a new product , it’s a new way to have the bridging conversation. Less fear. Less friction. More clarity. More confidence. This is the bridging solution you’ve been wishing someone would build. And now… it’s here.

📅 Happening This Week for LMG Brokers!

Big week ahead and I’m everywhere, so no excuses… come hang out with me! 😄

🎤 📍 TOMORROW: Melbourne PD Day — Come Say Hi!

LMG brokers, I’ll be at the Melbourne PD Day tomorrow.
Come grab me between sessions, pick my brain, talk scenarios, tech, policy… or just say hi.
You know I love a good chat. 💁‍♀️✨

🧠 Two Big Education Webinars This Week

A double-header of pure broker gold. Bring your team, bring your questions, bring your curiosity,  these two sessions are going to be packed.

👩‍🏫 1. Brokerversity – Wednesday

👨‍🏫 2. Mr Mentor – Thursday

We’re going deep into one of the hottest topics in the country: 🔥 Tiny Homes & Granny Flat Lending 🔥

A full one-hour deep dive covering:
✨ Know upfront from your client.
✨ Lending policy
✨ Valuation traps
✨ Documentation Requirements
✨ Brokers biggest Mistakes

📝 Register for Either Session Below

These are team-friendly sessions — bring your whole office if you want.
Everyone will benefit. This is truly a HOT topic right now, and I promise you’ll walk away with clarity, confidence, and practical guidance.

See you next week finance friends!