Weekly Credit Crunch 11th May 2026 🌟

 🏦 People First Bank

People’s Choice officially becomes People First Bank

People’s Choice officially launched as People First Bank on Tuesday, 5 May 2026.

Alongside the rebrand, several fee and lending policy updates are now effective from Tuesday, 5 May 2026, including:

Key updates

✅ Fixed Home Loan Fee Removal
The Monthly Administration Fee has been removed for all new and renewing Fixed Rate Home Loans.

✅ Construction Loan Period Extended
Construction loan periods have been extended from 12 months to 24 months.

✅ Interest-Only and Fixed Rate Alignment
When selecting an Interest Only period, the fixed rate term can no longer exceed the Interest Only period.

This change helps ensure greater consistency and clarity when setting up loan terms.

🏦 Granite

Digital VOI now required

Granite applications must now complete Digital Verification of Identity — VOI using biometric facial recognition.

This includes:

• A live selfie matched to identity documents
• Verification through government records via the Document Verification Service — DVS

Key dates

📅 Applications submitted after close of business Friday, 8 May 2026 must include a Digital VOI report.

📌 Pipeline applications will require Digital VOI to be completed prior to settlement and will be managed by Granite’s panel solicitors.

Easy Refinance Eligibility Updates

Additional eligibility requirements now apply to:

• Standard Easy Refinance
• SMSF Easy Refinance

Documentation and Source of Funds

To support stronger verification standards, the following is now required:

• A loan statement covering at least 90 days for the loan being refinanced
• If the loan statement is older than 60 days, an account transaction listing is also required
• The transaction listing must cover the period from the end of the loan statement to within 30 days of application submission
• Bank statements covering the same period are required to confirm the source of loan repayments

New Redraw Cap

For refinance applications, the total loan amount, including redraw, is now capped at 110% of the total loan balance.

This applies to all new applications not formally approved.

🏦 Wave Money

Maximum loan size increases

Wave Money has increased maximum loan sizes across all three products:

• First Wave Prime: up to $5 million
• Alt Doc and Alt Doc Plus: up to $4.5 million
• Peak Wave Specialist: up to $4.5 million

📌 Brokers should also note updates to Risk Fees and Applied Loadings for the larger loan sizes, as outlined on the rate sheet.

🏦 Westpac Group

Includes Bank of Melbourne, BankSA and St.George

Westpac Group has released a number of ApplyOnline and credit policy updates.

ApplyOnline Updates

Key system updates include:

• Australian Government 5% Deposit Scheme Guarantee Type Selection system prompt
• NextGenID now required to submit an application

Self-Employed Enhancements

Verification of entities not used in serviceability

Westpac Group is simplifying policy and verification requirements for self-employed entities that are not contributing income in serviceability.

Customer declarations are now acceptable for:

• Entity operating status
• Entity non-operating status
• Solvency

📌 Accountant letters or financials are still permitted, but are no longer mandatory.

Self-Employed Fast Track Eligibility

Fast Track eligibility has been expanded to allow Independent Contractors to be assessed using this method.

Emergency Services Workers Policy

Verification updates and midwives inclusion

Verification requirements have been simplified where 100% of non-base income is being used in servicing.Updates include:

• PAYG income verification simplified to require evidence of minimum 6 months year-to-date earnings only
• Hospital-employed Midwives are now an acceptable occupation under the policy

NRAS Scheme Removal

All National Rental Affordability Scheme — NRAS — credit policy, assessment and collateral requirements are exiting the scheme by June 2026.

ApplyOnline will also be updated to remove all NRAS content.

Bridging Loan Guarantee Update

The Spousal Security Guarantee type is now unacceptable for Bridging Loans.

Vacant Land Updates

Westpac Group has removed vacant land location restrictions and aligned LVRs.

Key changes:

• Vacant land category restrictions removed
• Maximum LVR increased to 95% inclusive of LMI cap
• Applies to both owner-occupied and investment lending
• Maximum land size of 50 hectares

🏦 Brighten

Servicing calculator strengths

Brighten is encouraging brokers to check out its servicing calculator, with several servicing features that may assist with capacity.

Highlights include:

✅ Existing debts assessed at 125% of actual repayments
✅ No DTI requirements
✅ New loans assessed with a 2% buffer
✅ Dollar-for-Dollar Easy Refi 1% buffer for Alt-Doc and non-resident loans
✅ 90% rental income accepted, with negative gearing included at assessment rate
✅ Company and trust rental income also considered
✅ 100% overtime, bonus and commission used, regardless of industry
✅ Strong HEM parameters
✅ Business debts not expensed
✅ 90% net overseas income accepted for PAYG and self-employed borrowers

Self-Employed Customer Options

Brighten also offers simpler options for self-employed borrowers, including:

✅ Alt Doc with one income verification method only
✅ Prime owner-occupied Alt Doc with no risk fee
✅ Most recent year financials accepted in isolation — 2025 financials required
✅ Company wages accepted in isolation
✅ No additional rate or fee buffers for company or trust borrowers

🏦 Brighten Webinar

Q&A with Brighten CEO Jason Azzopardi

Brighten is hosting a broker webinar with CEO Jason Azzopardi.

📅 Thursday, 21 May
🕦 2:00pm AEST

Brokers can submit questions ahead of time, with Jason covering as many as possible during the session.

📌 Question submissions close Monday, 18 May 2026.

👉Register here 

🏦 ANZ

Self-Employed Income Document Update

Existing ANZ customers

• ANZ has updated policy requirements for self-employed applications involving existing ANZ customers.
• For existing ANZ customers with an LVR of 80% or less, the validity period for acceptable self-employed income verification documents will extend from 22.5 months to 24 months.
• This means the validity date moves from 15 May to 30 June.

Company and Trust Home Loan Eligibility

ANZ has updated the Mortgage Credit Requirements for home loans in a company name, either in the company’s own capacity or as trustee for a trust.

Eligibility is now limited to eligible existing ANZ customers.

To qualify, the customer must satisfy the following:

• Must be one of the directors of the borrowing entity
• Must provide a personal guarantee
• Must hold a combined 25% or greater ownership in the borrowing entity
• Must have satisfactory account history

They must also meet one of the following:

• Have held an ANZ lending product in their own name, solely or jointly, for at least 6 months
• Have repaid an ANZ mortgage in the last 6 months, held in their own name for at least 6 months
• Be an ANZ business customer who is a director of a company that has held an ANZ lending product for at least 6 months

ANZ Relationship Managed or Dual Application customers may also be considered eligible existing customers where they have held an open ANZ term deposit, transaction account or savings account — personal or business — for at least 12 months with satisfactory conduct.

🏦 ME Bank

PAYG income validation made simpler

ME Bank has simplified PAYG income validation to help reduce paperwork and minimise Missing Information Requests.

Key updates include:

✅ Less paperwork for casual income
Six-month YTD payslips no longer require secondary documentation or variation checks.

✅ Salary packaging and deductions simplified
Salary packaging and voluntary deductions no longer require provider letters. The PAYG payslip is sufficient.

✅ Secondary employment aligned to income type
Secondary employment validation is now aligned to the relevant income type.

✅ More flexibility on payslip dates

✅ Simplified year-to-date rules

✅ Simplified real estate letter requirements

✅ Parental leave checks reduced

🏦 AMP Webinar

Five SMSF policy changes now live

AMP is hosting a webinar titled:

You asked. We acted: Five SMSF policy changes now live

📅 Thursday, 14 May
🕦 1:00pm AEST

In this session, AMP will cover:

• What’s changing in SMSF policy
• What the changes mean for brokers and customers
• Real broker scenarios
• How to submit SMSF deals with confidence
• A new lending product solution designed to help pre-retiree and retiree customers leverage equity and build wealth through property

👉 Register here 

🏦 Skip Loans Webinar

The Real Cost of Waiting to Buy Property

Skip Loans is hosting a webinar focused on helping clients understand the real cost of delaying a property purchase.

📅 Thursday, 21 May
🕦 11:30am AEST

The session will explore why waiting can cost clients more than fees and interest ever will.

Skip will show brokers how to quantify the real cost of waiting to buy property, with practical tools and language to help clients understand why time out of the market can often outweigh the perceived savings of building a larger deposit.

    👉 Register here 

 Have a cracking week!

As always, keep an eye on the details, check the latest lender policy before submitting, and don’t forget — the little updates can make a big difference when you’re trying to get a deal across the line.

See you next Monday, finance friends. 💛