Weekly Credit Crunch 13th July 2026 🌟

Another week, another stack of lender updates—and there's plenty to keep on your radar. 

This week's Credit Crunch is dominated by SMSF lending, with multiple lenders confirming how they'll manage residential applications ahead of the 10 August legislative deadline. If you have SMSF purchase deals in your pipeline, now's the time to double-check contract dates and make sure nothing gets caught out.

We're also seeing continued flow-on effects from the negative gearing changes, updates to the Australian Government 5% Deposit Scheme, refinements to servicing and verification requirements, and a handful of policy enhancements that could open up new opportunities for the right clients.

As always, we've cut through the lender announcements to bring you the updates that matter most—so you can spend less time reading policy and more time writing deals.

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🏦 AMP

AMP Bank Update

AMP is hosting a Bank Update webinar covering recent product, platform and operational updates.

Webinar details:

• Date: Wednesday, 5 August
• Time: 11:00 am – 12:00 pm

Topics covered: 

• AMP Platform
• Assessment performance
• Broker experience
• SMSF SuperEdge product
• New Product Launch
• Niches onProfessional package

👉 Register here 

AMP Updates on SMSF lending 

AMP has provided an update on its SMSF SuperEdge lending policy following the upcoming legislative changes.

What you need to know:

• Purchase applications and Pre-approvals will be valid for Contracts of Sale (COS) signed and exchanged on or before 9 August 2026. Contracts dated 10 August or after will not be accepted.
• Refinances will continue to be accepted ongoing.

AMP has confirmed it will continue to monitor legislative developments and provide further updates as they become available.

If you have scenarios to workshop, contact your BDM or visit the SMSF Hub to find out more. 

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🏦 ANZ

Operational Updates

Policy Update: Suspension of Simpler Switch policy for Home Loan applications 

Effective 10 July 2026, the use of ANZ Simpler Switch policy for Home Loan applications is suspended.

Inflight Applications

• For new applications submitted & sufficient before the Effective Date but not yet assessed, the Simpler Switch policy will be applied.
• For new applications submitted on or after the Effective Date, the Simpler Switch policy will not be applied, and full income verification will be required.
• For applications conditionally approved, and the customer is satisfying outstanding conditions, the Simpler Switch policy will be applied.
• For applications conditionally approved and the customer is seeking an increase or making credit critical changes on or after the Effective Date, the Simpler Switch policy will not be applied, and full income verification is required.
• If an application is declined or has expired and is resubmitted on or after the Effective Date, the Simpler Switch policy will not be applied, and full income verification will be required.

ANZ has advised its broker platforms and systems will be updated to reflect this change.

Annual Land Titles Office Fee Changes effective as of 1 July 2026 

Every year, the Land Titles Office (LTO) for each State and Territory review and at times make changes to their fee structure. These fees relate to Lodgment, Registration and Stamping of security documents for property transactions. The fees can also relate to mortgages, covenants, caveats and easements.

What is changing?

• All Australian state and territory LTOs have announced updated fees, effective from 1 July 2026.
• Below is a snapshot of some of the fees that are changing relating to the registration and discharge of a mortgage, as well as new search fees.

Further details about the fee changes are available on the respective state and territory Land Title Office websites. 

Reminder: Financial Year 2025 Tax Returns and Financials for Self Employed Income verifications 

With the commencement of the new financial year on Wednesday, 1 July 2026, please be aware that ANZ requires Financial Year 2025 Tax Returns and Financials for Self Employed Income Verification Requirements.

Inflight Applications

• For new applications submitted prior to the effective date but not yet assessed, Financial Year 2024 Tax Returns and financials apply.
• For new applications submitted on or after the effective date, Financial Year 2025 Tax Returns and financials will be applied.
• For applications in AST/AIP prior to the effective date, and the customer is seeking an Increase or Credit Critical changes, the Financial Year 2025 Tax Returns and financials will apply.
• For applications in AST/AIP prior to the effective date, and the customers are satisfying outstanding conditions, the Financial Year 2024 Tax Returns and financials and process will apply .
• If an application is Declined or has expired and is resubmitted on or after the effective date, the Financial Year 2025 Tax Returns and financials will apply.

More Information

• Residential Broker Portal:
• Mortgage Credit Requirements > 5.3 Business Income (Non-PAYG)
• ANZ Broker Portal:
• Mortgage Credit Requirements > MCR > 5.3 Business Income (Non-PAYG)

Updates to the Australian Government 5% Deposit Scheme 

Some important updates to the Scheme which were effective from 1 July 2026:

Updated Home Buyer Declaration form and Information Guides:

• A new version of the Home Buyer Declaration dated 'FY 2026-27 | 1 July 2026' is now available, replacing the previous 'FY2025-26 | 1 October 2025' version. Please ensure customers are using this new version for all applications submitted going forward.
• New versions of the Information Guides for First Home Buyers and Single Parents are now available, dated 1 July 2026.
• Brokers must refer customers to the First Home Buyer website where they can download the current versions of these forms and guides
• Brokers are reminded not to locally save copies of the Home Buyer Declaration or Information Guides. Please ensure any saved versions are deleted.

Retained Savings:

ANZ has advised it is reviewing the impacts of these changes on its processes and systems. For now, there is no change to the $30,000 maximum retained savings policy per Mortgage Credit Requirements. Further communication will be provided when ANZ's assessment of these changes is complete and any updates being made.

Refinance:

• Refinancing Enquiry Responses will now have an extended expiry date of 42 calendar days (previously 30 calendar days).
• Improving overall borrower experience, applicants who are refinancing from one Scheme lender to another, can now capitalise refinancing fees and costs into the new loan. ANZ is working through the impacts of this to our process and systems. Further communication will be provided once this is finalised, including any changes to the process.

Eligible Postcodes and Property Price Cap changes:

• The Northern Territory (NT) is now split to align with the states under the Scheme, by separating the capital city with the rest of the territory. Darwin $750,000, Rest of NT $600,000.
• Increased Property Price Caps now apply to four additional regional NSW centres.
• Brokers are required to use the Postcode Search Tool: Property Price Caps to confirm the Scheme Price Cap is not exceeded prior to submitting an application for support under the Scheme.

More information

• First Home Buyers 5% Deposit Scheme tools and resources
• First Home Buyers 5% Deposit Scheme property price caps
• Contact Your Residential Broker Manager

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🏦 Apollo

Negative Gearing Changes

What’s changing?

From 1 July 2026, negative gearing benefits will be excluded from serviceability assessments for established investment properties contracted after 12 May 2026. However, negative or capped gearing will still apply to the following:

• Contracts on or before 12 May 2026: Unchanged; assessed under existing rules.

• New builds: Continues to apply if they genuinely add to housing supply per ATO definitions.

• Non-property investments: Continues to apply (e.g., buying shares).

• Established properties contracted after 12 May 2026: Excluded from 1 July 2026; losses will be capped and the capped amount used in calculations.

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🏦 Better Choice

SMSF LRBA Legislation Change

The SMSF LRBA legislation changes take effect on 10 August 2026. To remain eligible, residential SMSF property purchase contracts must be exchanged on or before 10 August 2026.

Key Points

• Residential SMSF purchases: Contract exchange must occur by 10 August 2026.
• Queensland properties: Due to the 14-day finance clause:
• Applications with a signed contract (subject to finance) will be accepted until 20 July 2026, provided exchange occurs by 10 August 2026.
• Contracts already exchanged can be submitted up to 10 August 2026.
• Requirements before 10 August:
• ✔ Property contract exchanged by 10 August 2026.
• ✔ SMSF and property bare trust established at the time of application.
• ✔ Existing pipeline applications must provide the exchanged contract before 10 August to proceed to settlement.
• Commercial SMSF LRBAs are not affected by the legislation change.
• Refinancing remains available for existing residential SMSF customers with unchanged trustees.
• Service Level Agreement (SLA): 3 business days from receipt of a complete application.

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🏦 Beyond Bank

Australian Government 5% Deposit Scheme – Key Updates (Effective 1 July 2026)

Beyond Bank will continue participating in the Australian Government 5% Deposit Scheme. The following changes apply from 1 July 2026:

• Retained savings rules updated:
• Borrowers can retain savings equal to:
• 6 months of contractual home loan repayments, plus
• 6 months of assessed living expenses.
• For construction loans:
• Repayments are based on the final principal-and-interest repayments.
• Borrowers may also retain an extra 5% of the combined land and construction loan amount for potential cost increases, where appropriate.
• Refinancing changes:
• Scheme-backed loans refinanced to Beyond Bank can now include reasonable refinancing costs (such as discharge, establishment, and settlement fees).
• Fixed-rate break costs are not covered and must be paid by the borrower.
• Property price cap updates:
• NSW Central Coast, Coffs Harbour–Grafton, Mid North Coast, and Richmond–Tweed are now regional centres with a $1.5 million price cap.
• Darwin: price cap increased to $750,000.
• Rest of the Northern Territory: remains at $600,000.
• Home Buyer Declaration:
• An email address or phone number is now mandatory for all applicants and witnesses.
• Information Guide requirement:
• Applicants must receive the relevant Scheme Information Guide before a Guarantee is issued, and they must confirm they have received it in the Home Buyer Declaration.

Action required: Use the updated Scheme documents for all applications submitted on or after 1 July 2026.

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🏦 Bluestone

SMSF Residential Lending Changes – Key Updates 🚨

Legislation Update

• 📅 New law commences: 10 August 2026
• ✍️ Contracts of Sale can be signed and exchanged up to 9 August 2026 to remain eligible.
• ⚠️ Contracts must be completed in the correct legal purchaser’s name and comply with single acquirable asset rules.
• ❗Correcting contract errors later may not be possible, so accuracy before exchange is critical.

What the New Rules Mean 🏠

• 🚫 New residential SMSF LRBAs will be banned once legislation takes effect.
• ✅ Existing residential SMSF loans are grandfathered:
• Customers can continue holding and refinancing these loans indefinitely.
• ✅ Contracts signed before 10 August 2026 are protected, even if settlement occurs after the ban starts.
• ✅ Commercial SMSF property remains available under current rules.
• ⚠️ Off-the-plan purchases are unclear:
• The legislation does not clearly define when an arrangement is considered entered into.
• Clients should seek specialist legal advice before relying on grandfathering protections.

Opportunities for brokers 💡

🔄 1. Refinance Existing SMSF Residential Loans

• Existing grandfathered SMSF residential loans remain eligible for refinancing.
• With fewer lenders expected to support this market, there may be opportunities to help customers review rates and loan structures.

🏢 2. Grow into Commercial SMSF Lending

• Commercial SMSF lending remains unchanged.
• Eligible properties may include:
• Warehouses
• Strata offices
• Medical consulting rooms
• Other business-use properties
• The same key SMSF structures apply, including the bare trust and single acquirable asset rules.

📈 3. Support Customers as Other Lenders Exit

• Some brokers may leave the SMSF space as lender options reduce.
• Brokers who continue supporting SMSF customers can:
• Help existing clients understand the changes.
• Refinance grandfathered loans.
• Provide commercial SMSF alternatives.

Key Message for Customers 📣

A simple client check-in can help maintain relationships:

“Here’s what has changed, here’s what it means for you, and here are your options.”

📢 Key Market Updates 

We’ve pulled together the latest Cotality housing data and saved the key points from our SMSF update, so you can guide clients with confidence.

Evolving SMSF opportunities, shifting price trends & changing borrower behaviour, it’s all here.

SMSF Webinar Insights 

📢 SMSF Lending Changes – Key Takeaways (Q&A with Richard Chesworth)

The Government has confirmed a ban on SMSF limited recourse borrowing (LRBA) for residential property, effective 10 August 2026.

🗓️ Important Dates

• 📅 9 August 2026 – Last day clients can sign a residential property contract under the current rules.
• 🏡 Settlements can occur after 10 August if the contract was signed before the deadline.

✅ Existing SMSF Loans

• 🔒 Existing residential SMSF loans are grandfathered and remain unaffected.
• 💰 Clients can still refinance existing SMSF loans (residential and commercial).

⚠️ For New SMSF Purchases

• ⏳ Setting up a new SMSF before the deadline is likely to be difficult due to ATO processing times.
• 🏗️ Be cautious with off-the-plan purchases because of valuation, rental, and future lending uncertainties.

📋 Broker Licensing Reminder

• 🚫 Brokers cannot recommend setting up an SMSF or purchasing property within an SMSF.
• ⚖️ Refer clients to their financial adviser, solicitor, or conveyancer for SMSF establishment and legal advice.

💼 New Opportunity: Commercial SMSF Lending

• 🏢 Business Real Property (100% business-use properties) is not affected by the changes.
• 📈 Opportunities include medical suites, retail shops, warehouses, and cafés.
• ✅ Bluestone offers SMSF commercial lending with no additional accreditation required, fully integrated through Apply Online.

🤝 Key message: While residential SMSF lending is changing, SMSF lending isn't ending. Existing loans remain, refinancing is still available, and commercial SMSF lending presents a significant growth opportunity for brokers.

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🏦 Deposit Power

Deposit Power is hosting a webinar on using deposit bonds to assist more clients through the property purchase process.

This webinar explores how deposit bonds can remove the upfront cash deposit barrier, enabling more clients to progress confidently through the property buying journey. 

The session will provide practical strategies that can be applied immediately to help more clients, convert more opportunities to grow business. 

Webinar details:

• Date: Wednesday, 29 July
• Time: 01:00 pm – 02:00 pm

👉 Register here 

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🏦 MA Money

MA Money: A practical approach to Alt Doc lending

MA Money is hosting an Alt Doc 101 webinar, designed to help you confidently identify, structure and submit Alt Doc loan applications.

Webinar details:

• Date: Thursday, 30 July
• Time: 12:00 pm – 1:00 pm

What you’ll learn:

• What an Alt Doc loan is and when to use it
• How to identify suitable Alt Doc customers
• The Alt Doc process, tools and credit journey
• Real-life scenarios to bring deals to life

• A walkthrough of servicing calculations to help you confidently package and submit deals

Secure your spot and start turning more self-employed scenarios into deals.

👉 Register here 

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🏦 Macquarie

💼 Help Self-Employed & SME Clients Improve Cash Flow

With employers now required to pay superannuation at the same time as wages, many self-employed and SME clients are feeling increased cash flow pressure.

🏡 Opportunity for brokers:
Help clients refinance high-interest commercial or unsecured business debt into a separate residential home loan split, potentially reducing repayments and improving cash flow.

✨ Key policy highlights:

• 💰 Up to 50% of the total loan can be used for a dedicated business loan split.
• 📅 30-year residential loan terms can significantly lower monthly repayments compared to typical commercial loans.
• 📂 A separate loan split keeps personal and business finances clearly separated, making tax time easier for accountants.

🚀 Benefits for brokers:

• 📞 A timely reason to reconnect with self-employed and SME clients.
• 📈 Opportunity to increase residential loan volumes through debt consolidation.
• 🤝 Strengthen client relationships by solving a key business cash flow challenge, leading to greater loyalty and referrals.

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🏦 Granite

Granite SMSF – 6.99% Variable Rate Offer

Granite has introduced a special 6.99% p.a. variable rate for eligible SMSF residential property purchases up to 80% LVR, helping SMSF clients secure property purchases before the proposed LRBA ban takes effect on 10 August 2026.

Key Features

• 6.99% p.a. variable rate for eligible residential SMSF loans (up to 80% LVR).
• Borrow from a 20% deposit.
• 100% offset account available.
• No application fee.
• No ongoing liquidity threshold for loans under 80% LVR.
• No net asset requirement.
• No annual reviews.
• 2% servicing buffer.
• Flexible Principal & Interest or Interest Only repayments (subject to LVR).
• Loan amounts up to $3.5 million (≤80% LVR).
• Streamlined application process for faster approvals.
• Off-the-plan residential properties remain eligible if contracts are exchanged before 10 August 2026.

Eligibility & Timeframes

• Available for new variable SMSF residential purchase loans under a compliant Bare Trust (LRBA) structure.
• Applications must be received by 31 August 2026.
• Property purchase contracts must be exchanged before 10 August 2026.
• The promotional 6.99% rate applies where settlement occurs within 90 days of formal loan approval.
• The offer also applies to in-flight applications, including those already formally approved, provided settlement occurs within the 90-day timeframe.

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🏦 Resimac

📢 Credit Policy Updates – Key Highlights

Here are the latest policy enhancements that may help you close more deals:

👤 Borrower Eligibility

• ✅ Applications accepted from individuals, companies, and trusts (excluding unit and hybrid trusts).

💼 Self-Employed Enhancements

• 📄 1 year's financials accepted for Full Doc loans up to 80% LVR.
• 📝 Simplified income verification for PAYG/salaried self-employed with:
• 2 recent payslips
• PAYG summary
• Accountant's letter (Prime non-LMI & Specialist Clear up to 80% LVR).
• 💰 100% depreciation add-backs allowed with a valid depreciation schedule.
• 📉 Company liabilities can be excluded with an accountant's letter.
• 🏛️ ATO tax debt consolidation available under Prime Alt Doc (by exception).

📋 Alt Doc Income Verification

Provide a Declaration of Financial Status plus one of the following:

• 👨‍💼 Accountant's Verification
• 📑 6 months BAS
• 🏦 3 months Business Bank Statements (BBS)

💵 PAYG Income Improvements

Now accepting 100% of the following income types (minimum 6 months' history required):

• ⏰ Overtime
• 🌙 Shift allowances
• 💼 Second job income
• 👩‍💻 Permanent part-time income
• 💸 Commission

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🏦 Thinktank by LMG

On 1 July, LMG GO Beyond rebranded to Thinktank by LMG, elevating our existing LMG Lending offering across SMSF, commercial, residential, and private lending.

Thinktank's General Manager or Sales, Belinda Wright, said: “Bringing the Thinktank brand to the forefront reflects the strength of our partnership with LMG and makes it easier for brokers to identify where they can turn for support with specialist lending scenarios.”

We have been operating in the SMSF space since 2013. Over that time, we have refined our knowledge, policies and processes. We understand that when advisors, brokers and lenders workshop scenarios early, it supports more efficient execution and fewer surprises throughout the life of the loan.

As you may be aware, the Federal Government has announced a forthcoming ban on residential SMSF lending, which will come into effect 45 days after the associated legislation is formalised. We have addressed some frequently asked questions below. 

SMSF FAQs 

Is Thinktank by LMG still accepting Residential SMSF applications?

Yes. It's business as usual, and we are continuing to accept new Residential SMSF loan applications to support eligible borrowers purchasing property who have signed contracts prior to 10 August 2026. Residential SMSF refinance applications are not impacted by the changes. 

What about applications already in the pipeline?

Current and new loan applications may proceed to settle. Importantly, loans may only proceed for purchases with a contract of sale signed and dated before the effective ban date 10 August 2026. Settlement of the loan when this condition is met can occur on or after this date. 

Have Thinktank by LMG's SMSF lending policies changed?

No. There have been no changes to our Residential or Commercial SMSF lending policies. We will continue to stay close to developments as they arise and, should anything change we will update you as quickly as possible. 

What SMSF lending solutions does Thinktank by LMG offer?

We continue to offer both Residential and Commercial SMSF lending solutions, supporting a broad range of SMSF borrowing scenarios including tenants-in-common. 

Not sure whether a scenario fits?

If you have a client scenario you'd like to discuss, please get in touch. Our team are always happy to workshop the deal with you, talk through the available options and help determine the best approach before you submit an application. 

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🏦 Westpac

Credit Policy Learning Bites: Streamlined Refinance

Streamlined Refinance is an alternative assessment pathway for eligible refinance customers who have a strong repayment history but do not meet standard serviceability requirements. If eligible, a 1.00% serviceability buffer (instead of the standard 3.00%) may be applied, while the standard floor rate still applies.

Key Eligibility Criteria

• Refinance of an existing mortgage only (internal or external).
• New repayments must be less than or equal to current repayments.
• New loan must be on a Principal & Interest basis.
• Application must be non-mortgage insured (eligible LMI waiver packages are permitted).
• Maximum cash out/top-up of $5,000.
• No changes to borrowers or property ownership structure.
• No arrears on the mortgage in the past 12 months.
• Existing mortgage must have been held with the same lender for at least 12 months.
• Other CCR-reported commitments must have at least 4 months of clear credit history.
• CCR score must be 900 or above.

For full eligibility requirements and conditions, refer to Policy 03.35 – Streamlined Refinance.

📢 Westpac Negative Gearing Webinar 

Westpac is hosting a series of 30-minute online webinars via Microsoft Teams for brokers and their support staff covering upcoming Negative Gearing changes. If you missed a previous session or want a team member to attend, register for the session that best suits your schedule.

Topics covered:

• Negative Gearing changes
• Rental Income Tax Deduction (RITD) vs. Negative Gearing
• Pipeline treatment
• Eligible vs. ineligible scenarios
• Servicing calculator changes

Available sessions:

• 9 July 2026 (Thu): 10:00–10:30 am 👉 Click here to register 
• 14 July 2026 (Tue): 12:00–12:30 👉 Click here to register
• 15 July 2026 (Wed): 10:30–11:00 am 👉 Click here to register 
• 16 July 2026 (Thu): 10:00–10:30 am 👉 Click here to register 

Support staff are encouraged to attend, as the changes are expected to be important for future investment lending. Registration links are provided.

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🏦 LMG Lending Updates 

Did you hear? New specialist lenders have joined the LMG Lending portfolio this month:

• Thinktank: 7 July
• Skip: 8 July
• Brighten: 28 July (joining the portfolio in late July)

Here’s everything else happening across the portfolio this month:

Zeus by LMG

Zeus offers three lending solutions to suit different client needs:

• ⚡ Zeus Bolt – Fast, refinance-only loans with competitive pricing and quick turnaround times.
• 🏡 Zeus Own – Residential lending for owner-occupiers, investors, and fully assessed refinances.
• 🏗️ Zeus Build – Construction and renovation loans.

Apollo by LMG – Companies & Trusts Rate Special

• 40bps rate reduction on Apollo Plus Full Doc for non-trading companies and trusts.
• Offer extended until 24 August 2026.

Key features:

• Open to new trusts.
• Up to $3 million lending.
• Up to 85% LVR with no LMI.
• 2% servicing buffer.
• No guarantee required from trust beneficiaries.
• Fast approvals and streamlined SLAs.

Thinktank by LMG – Short-Term Funding

Competitive Private and Residual Stock Loans for:

• Business and investment purchases.
• Working capital and debt consolidation.
• Equipment finance.
• Developers retaining 5–35 completed units.

Skip by LMG – High LVR Lending

Latest Broker Bulletin podcast discusses:

• Myths around 98% LVR lending.
• Why high LVR lending isn't always higher risk.
• Real client success stories.
• How Skip simplifies the lending process.

Bridgit by LMG – Bridging Finance

Single-security bridging loans allow clients to unlock equity before selling, ideal for:

• Buying before selling.
• Downsizing.
• Renovating before sale.
• Acting quickly on investment opportunities.

Other Important Updates

• Advantedge will increase rates by 10 basis points for existing customers, effective 22 July 2026.
• Go Flexi has been retired from the LMG Lending portfolio (new applications closed 30 June 2026). Existing customers are unaffected, and Pepper Money remains available through LMG's lender panel. 

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That's a wrap for this week's Credit Crunch!

With legislative deadlines approaching, policy settings continuing to evolve and lenders refining their credit appetite, it's worth taking a few minutes to review your pipeline and make sure any affected deals are still on track. Sometimes it's the small policy change—or the date hidden in the fine print—that makes all the difference.

We'll be back next week with another round of lender updates, policy changes and practical insights to help keep you one step ahead. Until then, happy writing, and here's to another big week of approvals!