Kath's Credit Crunch Friday 29th August
- Home Guarantee Expansion - Learn More
Starts 1 October 2025
✅ All Australian first-home buyers can access the scheme with just a 5% deposit (no income or place caps).
✅ Scheme start date has been brought forward from 1 January 2026 → 1 October 2025.
✅ Property price caps increased as follows:
Feature |
Current Scheme (until 30 Sept 2025) |
Expanded Scheme (from 1 Oct 2025) |
|---|---|---|
| Eligibility | First home buyers, single parents, regional | All first home buyers (Australia-wide) |
| Income caps | Singles: $125kCouples: $200k combined | ❌ No income caps |
| Property caps | Lower limits (see below) | 🚀 Higher limits (see below) |
| Places available | ~35,000 per year, capped per lender | 🌏 Unlimited (no place caps) |
| Borrower types | Australian citizens, owner-occupiers only | Same – Citizens, owner-occupiers only (no investors) |
| Lender panel | ~30 lenders, capped allocations | More lenders, no allocation caps |
State / Territory |
Current Cap (to 30 Sept 2025) |
New Cap (from 1 Oct 2025) |
|---|---|---|
| NSW – Capital city & regional centre | $900,000 | $1,500,000 |
| NSW – Other | $750,000 | $800,000 |
| VIC – Capital city & regional centre | $800,000 | $950,000 |
| VIC – Other | $650,000 | $650,000 (no change) |
| QLD – Capital city & regional centre | $700,000 | $1,000,000 |
| QLD – Other | $550,000 | $700,000 |
| WA – Capital city | $600,000 | $850,000 |
| WA – Other | $450,000 | $600,000 |
| SA – Capital city | $600,000 | $900,000 |
| SA – Other | $450,000 | $500,000 |
| TAS – Capital city | $600,000 | $700,000 |
| TAS – Other | $450,000 | $550,000 |
| ACT | $750,000 | $1,000,000 |
| NT | $600,000 | $600,000 (no change) |
| Jervis Bay / Norfolk Island | $550,000 | $550,000 (no change) |
| Christmas Island / Cocos (Keeling) | $400,000 | $400,000 (no change) |
🔔 Lender & Policy Updates
AMP
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Pre-approvals now available via LoanApp only. (Apply Online temporarily paused.)
Go Flexi (powered by Pepper Money)
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No LMI, risk fee or LPF on Prime Full Doc home loans up to 90% LVR.
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Extended until 18 November 2025.
CBA
HELP debt repayment options
-
Exclude HELP debt for eligible customers; and
-
Include HELP debt repayments with a reduced assessment rate buffer of 1%.
➡️ Eligibility now assessed automatically by the system (no manual broker calc).
Bridging Loan update
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From 1 September 2025, new-to-bank customers eligible with min. post-bridging debt of $250,000, subject to full credit policy.
Fringe Benefit Tax (FBT) salary sacrifice arrangement
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From 5 September 2025, simplified verification:
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Customers can provide either a payslip or employer letter/statement. (No longer need both).
-
Non-genuine savings
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From 3 September 2025, expanded savings policy:
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Verification of funds held in a bank account prior to loan docs now acceptable.
-
CommBank already accepts gifts and rental history.
-
Bankwest
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From 5 September 2025, the $2,400 per year servicing surplus requirement will also apply to salaried self-employed applications.
-
Applies to:
-
Self-employed full verification,
-
Salaried self-employed, and
-
Combinations of SE income with other income types.
-
Granite
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Withdrawal of Co-Living loans.
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From 12 Sept 2025, 5pm AEDT: Granite will no longer accept or approve Co-Living applications.
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Any pipeline applications not fully approved by 30 Sept 2025 will be withdrawn.
Bendigo Bank
-
Inclusion of business debt commitments in servicing.
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Inclusion of all dependants in household and full child support payments (even with partial custody).
Great Southern Bank – 40 Year Loan Term
Eligibility / Key Requirements
-
Loan term: Up to 40 years available.
-
Borrower type: At least one borrower must be a first home buyer.
-
Loan purpose: Purchase or construction.
-
Loan types: Basic and Offset.
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LVR: Max 90% inc. LMI and fees.
-
Repayment type: Principal & Interest (P&I).
-
Income verification: Full-doc requirements apply.
Credit Policy Considerations
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Servicing: Assessed over the actual 40-year term.
-
Age of borrower: All applicants must be aged 40 years or less at the time of approval.
🌟 Lender Spotlight – Apollo by LMG (Athena)
My Top 5 Niches I Love:
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Apollo Plus (<85% LVR): For investors in non-trading trusts & companies.
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Apollo Pro (80–85% LVR): Fully featured, no LMI.
-
Residual Stock: Acceptable for developers under a home loan (residential security).
-
Company Liabilities: Excluded unless adding back interest.
-
Simple Refi Option: Servicing buffers of 1% for like-for-like refinances.
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