Credit Crunch - 17th August

There’s plenty moving across lender policy this week, with SMSF refinance opportunities firmly in focus, some useful servicing and verification changes, and a handful of process updates worth getting across before your next submission.

The key thing here: some of these changes create genuine opportunities, while others come with dates, eligibility rules and documentation traps that could easily catch a deal if you’re working off old policy.

Here’s what’s in play this week:

🏦 AMP

SMSF SuperEdge loan update: refinance remains open

AMP continues to support residential SMSF lending for refinance opportunities, but new purchase lending has now tightened.

What you need to know:

• SMSF refinance applications continue to be accepted.
• Contracts exchanged on or before 9 August 2026 remain eligible.
• Contracts dated 10 August 2026 onwards will not be accepted.
• SMSF residential pre-approvals are no longer available.
• AMP continues to offer a refinance SMSF loan solution with a true offset account.

Exit strategy policy enhancements

AMP has also made several changes across its Home and Investment lending products.

Key changes include:

• Clearer guidance around when an exit strategy is required.
• Downsizing is now an acceptable exit strategy, subject to assessment criteria.
• Exit strategies are no longer required for rentvesters.
• The previous minimum Net Monthly Surplus of $500 has been removed.

Quantity Surveyor report changes

AMP is moving to a more targeted approach to QS requirements for construction lending.

Changes include:

• QS requirements will now be based on the construction contract value, rather than the total loan amount.
• Lower-value builds may face reduced QS requirements.
• A QS Report, including oversight before progress payments, will now generally be required where the construction contract exceeds $2 million, up from the previous $1 million threshold.

🏦 ANZ

Australian Government 5% Deposit Scheme: retained savings changes

Effective 17 August 2026, ANZ has updated its retained savings requirements for applications supported by the Australian Government 5% Deposit Scheme.

The maximum acceptable retained savings is changing from a flat $30,000 to an amount equal to:

• six months of living expenses used for serviceability, using the higher of declared expenses or HEM; plus
• six months of actual home loan repayments.

For construction loans, customers may also retain up to an additional 5% of the total loan amount to cover potential construction variations.

The new policy applies to applications from 17 August 2026.

ANZ is also adding a new compliance question in Apply Online requiring brokers to confirm the relevant Australian Government 5% Deposit Scheme Information Guide has been provided to the customer.

🏦 Apollo

Apollo Unleashed: sharper rates, new niches and policy

Apollo is holding an update covering upcoming product, pricing, policy and lending changes.

The session is scheduled for Tuesday 18 August.

👉 Register now

🏦 Bank of Melbourne

Reminder: 1-year self-employed assessment

Eligible self-employed customers can be assessed using one year of financials, subject to the relevant criteria.

For the 1-year assessment method, the key documents are:

• Latest year personal ITR and NOA.
• Latest year tax returns for any self-employed entities.
• Latest year balance sheet, where required.

For full eligibility requirements, refer to Policy 03.16 Self-employed Customers > 2.4.2 1 Year Assessment Method.

🏦 Bluestone for LMG

Bluestone joins LMG lending from September 2026

Bluestone Home Loans is joining the LMG Lending portfolio from September 2026, giving brokers another option across non-prime and non-standard lending.

The proposition is aimed at borrowers including:

• self-employed customers;
• clients with complex income; and
• customers with adverse credit histories.

A launch webinar will cover Bluestone for LMG’s niches, policy and process.

Bluestone for LMG Launch Webinar

When: Tuesday 2 September, 12pm–1pm AEST

👉 Register here

🏦 Granite

Credit policy enhancements effective 17 August

Granite has introduced several policy changes designed to simplify verification and improve servicing flexibility.

Key changes include:

• Simplified Company and Trust income verification.
• Greater reliance on Comprehensive Credit Reporting for credit card conduct.
• Clarification of Easy Refinance loan terms for borrowers aged over 55.
• 100% of fixed-term contractor income can now be used instead of 90%.
• Digital VOI can be submitted at application.

Applications submitted before 17 August will be assessed under the previous policy. Applications submitted from 17 August will be subject to the new policy.

Credit card verification

Granite will no longer require the most recent three months of credit card statements where at least three months of clear repayment history is visible through CCR.

In that scenario, servicing will use 3% of the card limit.

However, clients may receive a more favourable servicing treatment of 1.5% of the credit card limit if the latest three months of statements are supplied and demonstrate the balance has been paid in full each month.

Company and Trust income verification

For Companies, Granite will now accept:

• the latest year’s business tax return; or
• the latest year’s business financial statement;

Plus the associated individual notice of assessment or an accountant’s letter confirming the latest business tax return is final and lodged or pending lodgement.

For Trusts, the same approach applies using the latest trust tax return or trust financial statement.

Where the latest tax return is more than 15 months old, the two most recent BAS may also be required to confirm current income.

Standard Easy Refinance for borrowers over 55

If any borrower is over 55 and is refinancing or extending their loan term:

• For an investment property, the term may be extended up to the maximum term available under the matched product.
• For an owner-occupied property, the maximum new loan term is capped at 85 minus the age of the oldest applicant.

For example, if the oldest borrower is 62, the maximum term would be 23 years.

Easy Refinance exclusions also apply where:

• the incoming rate is more than 2% higher than the effective rate with ColCap;
• a valuation identifies essential repairs; or
• the application involves residual stock or property development.

🏦 ING

Refinance opportunities

ING is reminding brokers of its commercial refinance proposition.

Current features highlighted include:

• Variable rates currently at 6.39% p.a. for facilities above $2 million.
• 20-year facilities for loans up to $5 million for borrowers with less than $15 million in assets or turnover.
• No re-risk grading required for annual reviews on loans over $5 million.
• GSA limited to the borrowing entity rather than the primary trading entity.
• No ongoing or line fees.
• Direct access to decision-makers and dedicated support.

🏦 ME Bank

New home loan top-up webform

From Friday 14 August 2026, ME home loan top-up requests should be submitted through the new digital webform available in the Broker Portal, under Links in Rates and Forms.

ME recommends having all supporting documents available before starting the form.

The underlying top-up credit policy and assessment criteria remain unchanged, and applications already underway will continue under the existing process.

Further guidance is available through the Broker Portal.

$3,000 refinance cashback reminder

ME’s $3,000 refinance cashback remains available for eligible clients.

To qualify, clients must:

• submit an application by 28 August 2026;
• settle within 120 days of application;
• have a minimum total loan size of $700,000+; and
• have a maximum 80% LVR.

Cash out without additional paperwork

For loans without LMI, ME highlights simplified cash-out treatment across purposes including:

• personal use such as travel, weddings, furniture and retention of redraw;
• cosmetic or non-structural renovations, including landscaping, pergolas, sheds or granny flats up to 60m²;
• residential property or deposit purposes;
• motor vehicles; and
• personal investment.

🏦 MyState

A reminder of MyState’s policy niches

MyState has highlighted several policy areas that may help brokers place deals, including:

• Up to 100% LVR on established owner-occupied properties.
• Investment construction lending up to 90% LVR.
• $0 notional rent accepted when living with family or friends for five or more years.
• Second job income accepted with six months’ history, with total employment capped at 60 hours.
• 100% of eligible tax-free salary sacrifice income outside super used for servicing.
• 100% overtime accepted for essential workers.
• Self-employed assessment using one year’s financials with no BAS required.
• No bank statements required upfront.
• No statements required for liabilities appearing on Equifax CCR.
• One assessor from start to finish.

🏦 People First Bank

Broker Evolution Update

People First Bank is holding a webinar covering its broker proposition, including niche lending, products, application characteristics, digital lodgement improvements and national BDM support.

When: Wednesday 16 September, 11:00am–11:45am

👉 Register here

🏦 RedZed

Unlock, Refinance, Grow webinar

RedZed is running a session focused on:

• strategic cash out;
• SMSF refinancing through EasyRefi; and
• residential and commercial opportunities that may sit outside major-bank appetite.

When: Tuesday 15 September, 11:00am–12:00pm

👉 Register here

🏦 Resimac

New opportunities for SMSF lending

Resimac has strengthened its SMSF policy following the restriction on new residential SMSF purchases from 10 August 2026.

Refinances of existing SMSF loans remain available.

Changes include:

• Residential SMSF purchases remain eligible where contracts were entered into before 10 August 2026.
• Maximum loan limits increase to $2 million for Category 1 and $1.75 million for Category 2, up to 80% LVR.
• Between one and six members or guarantors can now be accepted.
• Eligible concessional super contributions can now be included in servicing.
• SMSF rates have been reduced across selected LVR tiers.

🏦 Ubank

Serviceability Calculator update: Director Wages

Ubank has updated its Serviceability Calculator to make Director Wages easier to capture.

When Director Wages is selected as the Employment Type, the Digital Income Calculator tab will now display the required income fields and automatically calculate the applicable income figures for servicing.

Brokers should use calculator version v19.3, available from the broker site.

🏦 Westpac

Simplify to Amplify webinar

Westpac is holding a webinar on Wednesday 19 August, 1–2pm AEST covering recent policy enhancements including:

• Up to 95% of rental income considered for serviceability on eligible investment properties in selected postcodes.
• Negative gearing policy changes.
• Simplified Division 7A and inter-entity policies for self-employed borrowers.
• Q&A on how the changes apply across common scenarios.

CPD points are available for MFAA and FBAA members.

👉 Register here

🏦 Zeus by LMG

Key policy changes effective 17 August 2026

Following strong growth in its first 10 months, Zeus by LMG has introduced a broad range of policy changes.

Key updates include:

• Maximum LVR and loan limits now vary by locality, with improvements in some regional areas.
• Non-spousal and non-de facto borrowers can now be assessed.
• Liability verification has been simplified.
• Construction progress payment schedules have been updated.
• Notional rent applies regardless of DTI.
• Funds-to-complete verification requirements are now tiered by LVR.
• Negative gearing has been uplifted to align with legislative changes.
• Company and Trust verification has been simplified to one year’s tax returns or financials.
• Equity release is capped at the lower of $200,000 or 20% of the security value.
• Private Certifiers are now accepted alongside Council-approved plans.
• Additional Zeus Bolt qualifying criteria will apply for the Streamlined Refinance process.

The wrap

This week’s updates are a good reminder that lender appetite rarely moves in one direction.

SMSF purchase lending may be narrowing, but refinance options are still very much alive. At the same time, we’re seeing lenders simplify self-employed verification, improve treatment of certain income types and make targeted changes that could genuinely shift servicing outcomes.

The opportunity is in knowing the detail before the client is sitting in front of you.