A Note Before You Listen: This final edition of the Credit Crunch for 2025 was recorded on Friday, December 12th. Since the recording took place, the tragic and devastating terror attack has occurred in Bondi Beach last night, and my thoughts and deepest love are extended to everyone in Australia and especially those directly impacted by this horrific event. Please read the original update below with this context in mind.

🎄My Final Credit Crunch for 2025🎄

Well friends… this is the last Credit Crunch for the year! What. A. Ride. 🚀

If you’d told me back in January that this year would end with The Brokers' Bible being aquired by LMG,  Australia’s largest aggregator… I never would’ve believed you,  it simply wasn’t on my radar (for at least 5 years!) Yet here we are, and it’s become one of the most exciting, energising chapters of my career. Being able to collaborate at this scale and help build world-class support and resources for brokers across Australia and New Zealand has been a total pinch-me moment.

And the best part?
Next year, you’ll see an uplift across the board.
I’m already deep in planning for 2026 and feeling incredibly excited about what’s coming.

🌱 So, What’s Ahead for 2026

• Commercial Policy Upgrade:
  We’re nearly done, about 8 lenders left to go. This will be a huge uplift for brokers working in commercial or wanting to step into it. 

• New Templates & Courses:
  Fresh tools, white-label assets, education pathways… all designed to genuinely help you run a better business.

• More Education Webinars:
  Bite-sized, practical, and broker-led by me. Expect deeper dives, real scenarios, and training that supports what you're actually facing day-to-day. These webinars are not just for you, I'm designing programs for your entire team.

• AI Build Expansion:
  Brokerchat.AI - More structure. More accuracy. More support layers.

💡 My Personal Advice to Brokers Going Into 2026

1. Double down on what AI can’t do

• Connection, relationship building, authenticity.
• Pick up the phone.
• Meet clients face-to-face.
• Re-engage referral partners.

These are the things that build trust, credibility, and long-term business.

2. Lean into what AI can do

• Don’t fight it — use it. Understand it. Play with it.
• Put one hour a week in your calendar.
• Be curious. Ask questions.
• Talk to other brokers about what’s working for them.
• 2026 is the year AI stops feeling “new and shiny” and becomes part of your everyday ops.

Age is irrelevant, curiosity isn’t.

3. Build your marketing muscle

• Your clients want to see you.
• Your story. Your values. Your knowledge.
• Show up online authentically — even imperfectly.
• Run events. Teach your community. Share what you know.

This was a huge part of how I built my business.

4. Know your niche

• Understand exactly who you serve and speak directly to them.
• You don’t need to be everything to everyone — you just need to be the right person for your ideal client.

🤖 What to Outsource to AI (Immediately)

Think of AI as your extremely eager trainee who doesn’t need coffee breaks:

Application assistant: 

• Policy searching - AKA, The Brokers' Bible

• BID/compliance note drafting

• Application submission notes

It won’t replace your compliance obligations — but it will save you hours.

In your business:

• Marketing campaigns & social content

• Email sequences & nurturing funnels

• Team KPI planning, business modelling & cashflow mapping

• Business analysis

• Business planning frameworks

And on the personal side…

• Holiday planning

• Meal preparation

• Kids’ schedules and activities

• Mental load support

• Life admin (basically everything you normally avoid)

Honestly, I even use one of my little AI agents for general sanity checks… and yes, it now refers to me as “Lovely,” not “Kath.” I didn’t ask for this , but I will absolutely take it.🤣

✨ Be Curious

That’s my biggest message for 2026. Curiosity is going to be your competitive edge. I’ve built a whole suite of my own GPTs — investing, SMSF/tax, travel planning, parenting teenagers, meal prep, business strategy, and sanity checks. 

Do they replace my financial planner or accountant?
Absolutely not.

Do they give me clarity, a framework, and the confidence to have better conversations with those professionals?
Yes. And it’s brilliant.

 

Go Flexi by LMG – Big Update 🚀

LMG – You asked, we listened.
We’ve extended Go Flexi and here’s the headline:

✨ No LMI. No Risk Fee. No LPF.

Up to 90% LVR on Prime Full Doc home loans for both refinances and purchases of residential properties.
Offer ends 17 February 2026*.

And the kicker?
Unlike most LMI waivers, there are no occupation restrictions across both OO and INV borrower profiles.
(Prime eligibility criteria still applies.)

ApplyOnline – Document Upload Changes 📁

Effective immediately:
Email documents will no longer be accepted.
All home loan application documents must be uploaded directly via the Documents Tab in ApplyOnline.

ANZ – Making Commercial Lending Simple 🏢

Perfect for clients growing their sub-$3M property portfolio.

Key highlights:

• Interest Only up to 5 years, matched to the remaining lease term to support cash flow.

• 1.5x interest coverage ratio, calculated using current rates — helping more clients meet servicing from net rent.

👉 Full details inside the TBB Commercial Hub.

Westpac Group – Company & Corporate Trustee Loan Changes 🏛️

Effective Thursday 18 December, home and investment loans where the borrower is a company or corporate trustee will only be available via:

• Business Bank, or

• Private Wealth channels.

This change ensures customers receive the right level of expertise and a more consistent experience.

Eligibility Overview

New to Bank Applicants

Must demonstrate either:

• Primary income (>50%) from self-employed business income, or

• Meeting Private Wealth segmentation.

A new-to-bank customer is someone with:

• No existing business lending or business transaction accounts with the Group, and

• No existing mortgages with the Group (personally or via related entities).

Existing to Bank Applicants

Must sit within a Business & Wealth RM-managed relationship that includes active business lending and/or transaction accounts.

For additional lending on an existing company/corporate trustee loan:

• Primary income must be >50% self-employed, or

• Applicant must meet Private Wealth segmentation.

Pipeline Deadline

Applications under current policy must be submitted by 11:59pm, Wednesday 17 December 2025.

Bank of Sydney – New Policy Niches 🧩

• Common Debt Reducer:
  Where an applicant shares a debt with a non-applicant (e.g., spouse, friend), BoS may assess only the applicant’s ownership percentage — subject to conditions.

• Regional Residential Max LVR (no LMI) increased to 75% (up from 70%).

Suncorp – Construction Loan Changes 🏗️

From Friday 12 December 2025, Suncorp will only offer Interest Only construction loans.

Key points:

• AOL will update between 15–17 December, but any construction loan submitted on or after 12 December with P&I selected will not be accepted.

• Construction splits must now sit in their own loan split.

• Pre-approval construction loans submitted as P&I will need to be switched to IO if converting to full approval on or after 12 December.

👥 Members We Helped This Week

Here’s a snapshot of the real scenarios our members brought to us — and how The Brokers’ Bible stepped in to support.

1️⃣ Foreign Income – PNG Kina + 90% Investment Purchase

Member query:
Client working and living in Papua New Guinea, earning in Kina, wanting to buy an investment property.. NAB was shading income by 40% and broker wanted to know which other lenders accept Kina and how they calculate it.

TBB support:
PNG is a niche currency with limited lender appetite, but we provided:

• Direct links to our Foreign Income Module + Non-Resident and Expat Hubs

• Clarification on expat vs non-resident treatment

• A shortlist of lenders who MAY consider Kina income for expats:

  ANZ
  Bluestone
  Bankwest
  Brighten
  Granite
  MA Money
  Westpac Group (capped at 70% LVR)

This gave the member instant clarity AND lender direction.

2️⃣ Australian Government 5% Deposit Scheme – Savings Too High?

Member query:
Clients purchasing at $700,000, with $142,000 in savings. Lenders showing ~$7,800 LMI. Broker asked whether the Home Guarantee Scheme could apply.

TBB support:
We provided:

• Direct module links

• A full breakdown via our AI Chatbot, including:

Key insights:

• Scheme requires deposit between 5%–20%

• Clients’ savings = 20.28%, which exceeds the threshold

• Lenders are guided not to offer the scheme where savings are >20%

• Strict retained savings applies

• Clients retaining $100k+ after a 5% deposit would also breach retained savings guidelines

Outcome:
Clear advice that the clients may not be eligible, with supporting references and next steps.

3️⃣ OO Purchase With Visa Holder Sister + Retaining Existing Investment Property

Member query:
Owner-occupier purchase with a non-resident sibling on a current VISA, while retaining an existing investment property. Needed lender options that supported complex structures + visa flexibility.

TBB support:
We suggested ING as a strong lead because:

• They offer a Property Share Loan

• They accept any visa

• They may allow:

  • PR borrower on title,

  • Visa holder loan only
    (commonly accepted in marital relationships — pending confirmation for siblings - this may not be suitable)

We flagged this as a potential pathway and suggested a  deeper review of the VISA HOLDER module inside TBB and encouraged to workshop with the BDM.

🌟 Want support like this?

These scenarios are exactly why brokers lean on The Brokers’ Bible daily — fast answers, policy clarity, structure ideas, and lender direction when scenarios get tricky.