Credit Crunch - 10th August

This week’s Credit Crunch is coming to you from Scale Up in Christchurch, where I’m catching up with our Loan Market broker and lender community – and there’s plenty happening on the lending front too.

First up, there’s a big addition to the LMG Lending portfolio.

Bluestone Home Loans will join LMG Lending from September 2026 as Bluestone for LMG, adding another option for brokers working with near-prime, self-employed and more complex borrowers.

Beyond that, Beyond Bank has switched pre-approvals back on, Resimac has made several policy changes that could help reopen tricky scenarios, and we’ve got a couple of webinars worth putting in the diary.

Here’s what you need to be across this week:

🏦 Bluestone for LMG

Bluestone is joining the LMG Lending portfolio

From September 2026, Bluestone Home Loans will become a strategic LMG Lending partner with the launch of Bluestone for LMG.

The addition strengthens the LMG Lending offering across non-prime and non-standard lending, particularly for clients who don’t necessarily fit neatly inside mainstream policy.

Think:

• Near-prime borrowers sitting just outside standard policy
• Self-employed clients with complex income
• Clients with adverse credit histories
• Scenarios that need a more considered, real-world credit assessment

For brokers, it means another option within the LMG Lending portfolio when the client or scenario isn’t vanilla.

Worth noting: Bluestone for LMG doesn’t go live until September. Until then, continue using Bluestone Home Loans in MyCRM.

Broker takeaway

This is less about another lender logo and more about filling a policy gap.

As lending gets tighter and borrower circumstances become more complex, having another option for clients who sit outside traditional lending parameters could be particularly useful.

The key thing here is the September launch date. Until Bluestone for LMG officially goes live, continue submitting through Bluestone Home Loans in MyCRM.

Want to understand where Bluestone for LMG will fit?

Bluestone for LMG Launch Webinar

📅 Tuesday, 2 September
⏰ 12:00pm–1:00pm AEST

Bluestone’s Head of Non-Standard Lending, Aaron Taylor, and LMG’s Head of Specialised Distribution, Richard Chesworth, will unpack the product niches, policies and processes brokers need to know.

👉 Register here

🏦 Beyond Bank

Pre-approvals are available again

Beyond Bank is once again accepting pre-approval applications.

This could be handy for clients who want a clearer idea of their borrowing position before they start getting serious about a property, particularly when dealing with agents or builders.

Importantly, these aren’t quick system-generated indications. Pre-approval applications are fully assessed.

Key details:

• Pre-approvals are valid for 120 days
• Construction loan pre-approvals are valid for 180 days
• Pre-approvals have an eight-business-day assessment SLA, the same as complex loans

Current service levels:

For simple loans, Beyond Bank’s current service level for fully assessed conditional approval is five business days from the date all required supporting documentation has been provided.

For complex loans, including companies and trusts, and for pre-approval applications, it’s eight business days once all supporting documentation has been provided.

Broker takeaway

Pre-approvals being back gives brokers another option for clients wanting more certainty before they make their move.

The key thing here is timing. Don’t treat a pre-approval like a standard simple deal when managing client expectations — allow for the eight-business-day assessment timeframe and make sure the supporting documents are complete before you start counting days.

📊 Equifax

Get across the changing consumer credit risk landscape

Equifax is running its Strategic Consumer Credit Insights Webinar, looking at how data and credit insights can support better lending decisions.

Webinar details:

📅 Thursday, 13 August
⏰ 1:00pm–2:00pm AEST

The session will explore the changing consumer credit risk landscape and how credit insights can help brokers better assess risk and understand their clients.

Broker takeaway

Credit risk isn’t just something for the lender’s assessment team to worry about.

Understanding what lenders can see — and how that information may influence an assessment — can help you spot potential issues before an application hits credit.

👉 Register here

🏦 Latitude

A potential solution when your client is short on funds to complete

Latitude is hosting a webinar on its Personal Loan – Funds to Complete solution.

Webinar details:

📅 Tuesday, 18 August
⏰ 1:00pm–2:00pm AEST

The solution is designed to help eligible owner-occupier and investor clients bridge financial shortfalls, including:

• Property valuation gaps
• Build completion costs
• LVR reductions

Broker takeaway

One to keep on your radar when a client has the home loan sorted but hits a funding gap before completion.

The detail matters with any secondary lending structure, so the webinar is a good opportunity to understand where Latitude’s solution fits and when it may be appropriate for a client.

👉 Register here

🏦 Paramount

Commercial SMSF lending worth knowing about

Commercial SMSF lending can get complicated quickly, particularly when you’re trying to find the right fit around LVR, documentation and loan size.

Paramount’s commercial SMSF offering includes:

• New and existing SMSFs
• Up to 80% LVR
• Loans up to $10 million
• Lo Doc with an accountant’s letter accepted
• Rates from 7–8% p.a.
• Loan terms up to 30 years
• Interest-only available for up to five years

Broker takeaway

The standout here is the combination of up to 80% LVR, loans up to $10 million and Lo Doc options.

For brokers working with self-employed clients looking to acquire commercial property through an SMSF, this could open up another conversation.

As always with SMSF lending, don’t assume the structure works just because the headline lending parameters fit. Check the full scenario and documentation requirements before positioning the solution.

🏦 Resimac

Policy changes that could reopen a few tricky scenarios

Resimac has made several policy changes across ATO debt, private and solicitor loan refinances, parental leave income and Alt Doc verification.

Here’s what’s changed.

ATO debt refinance

Eligible Prime borrowers can now consolidate up to $200,000 of ATO debt at up to 80% LVR.

ATO repayment plans

Eligible Specialist borrowers can retain existing ATO repayment arrangements.

Private and solicitor loan refinance

Refinancing private and solicitor loans is available to eligible Prime and Prime Alt Doc borrowers at up to 80% LVR.

Parental leave

Resimac will accept 100% of eligible parental leave income.

Mixed income – Alt Doc

An accountant’s declaration can be accepted for self-employed income verification where the borrower has a combination of PAYG and self-employed income.

That’s all for this week’s Credit Crunch – but keep your eyes on Brokers Bible socials for any key live lender updates, and of course plenty of Scale Up content!

And of course, if you are with us over in Christchurch, make sure you swing past the Brokers Bible stand in the Loan Market Experience Hub for a chat 👋

Happy broking,

Kath