Welcome to this week’s Credit Crunch.

There are a few important servicing and policy changes coming into effect over the next week, particularly from ANZ, so this is one of those weeks where it is worth checking your pipeline before you lodge.

We are also revisiting a couple of policies that can make a genuine difference to a deal including common debt reducer and Bank of Sydney’s 90% no-LMI offering for select professionals.

Let’s get into it.

🏦 ALL LENDERS

Fixed Rates Are Moving – Don’t Forget the Rate Lock Conversation

Have you noticed the number of lender emails announcing increases to fixed rates recently?

It is a timely reminder that if your client is considering a fixed-rate loan, make sure you have the rate lock conversation before you lodge the loan.

Importantly, make sure the conversation and the client’s decision is appropriately documented within your compliance notes.

A small conversation now can avoid a very uncomfortable one later if the fixed rate has moved by settlement.

🏦 ANZ

HEM Quarterly Update – Effective 28 September 2026

ANZ’s quarterly Household Expenditure Measure (HEM) update will take effect from Monday, 28 September 2026, in line with the latest HEM data provided by the Melbourne Institute.

Broker Reminder: Check Serviceability Before You Lodge

If you have applications close to servicing, now is the time to review them.

Treatment of Inflight Applications

Applications submitted before 28 September 2026 but not yet assessed:
The previous HEM will apply.

Applications submitted on or after 28 September 2026:
The new HEM will apply.

Applications already in AST/AIP before 28 September where the customer is requesting an increase or another Credit Critical change:
The new HEM will apply.

Applications already in AST/AIP before 28 September where the customer is only satisfying outstanding conditions:
The previous HEM and process will continue to apply.

Applications that have been declined or expired and are resubmitted on or after 28 September:
The new HEM will apply.

ANZ Home Loan Calculator

A new version of the ANZ Home Loan Calculator – HLC V65 will be available from Monday, 28 September 2026 via:

• Residential Broker Portal
• ANZ Broker Portal

Credit Card Servicing Sensitisation Increasing

Also effective 28 September 2026, ANZ is increasing the sensitivity margin used to expense credit card limits for serviceability purposes.

The current margin of 3.8% will increase to 3.9%.

ApplyOnline will automatically calculate the monthly credit card commitment using:

3.9% of the total credit card limit OR the customer’s stated monthly credit card expense — whichever is higher.

Inflight Applications

New applications submitted on or after 28 September 2026:
The new 3.9% credit card sensitisation rate will apply.

Existing inflight applications that have already been decisioned:
The existing 3.8% rate can continue to be applied where required.

Further Information

Via the Residential Broker Portal:

• Mortgage Credit Requirements > 5.7 Expenditure
• Broker Operations Manual > 6.6.3 Statement of Financial Position

Via the ANZ Broker Portal from 28 September 2026:

• Mortgage Credit Requirements > 5.7 Expenditure
• Broker Operations Manual > 6.6.3 Statement of Financial Position

Australian Government 5% Deposit Scheme – VEVO Changes

From Monday, 28 September 2026, ANZ will complete the required Visa Entitlement Verification Online (VEVO) check for eligible New Zealand citizens and Australian permanent residents applying under the Scheme.

ANZ’s Retail Lending Operations team will complete the VEVO check for:

• Australian Permanent Residents who are not Australian citizens; and
• New Zealand citizens holding a Special Category Visa – Subclass 444.

Documents Brokers Need to Provide

Australian Permanent Residents

Provide either:

• A copy of the customer’s Visa Grant Notice showing an indefinite length of stay; or
• A copy of the customer’s foreign passport, either current or expired.

Important: The customer’s foreign passport must be linked to the applicant’s Permanent Resident Visa granted by the Department of Home Affairs.

New Zealand Citizens

Provide:

• A copy of the customer’s New Zealand passport, either current or expired.

Further Information

Via the Residential Broker Portal:

• Broker Operations Manual > 4.8 Australian Government 5% Deposit Scheme
• Brokerology Basics / 5% Deposit Scheme FAQs

Via the ANZ Broker Portal:

• Broker Operations Manual > 4.8 Australian Government 5% Deposit Scheme
• Brokerology Basics / 5% Deposit Scheme FAQs

New Negative Gearing Resources

Following the Federal Government Budget announcement regarding proposed changes to negative gearing on 12 May 2026, and the subsequent passage through Parliament on 25 June 2026, ANZ has developed additional resources to support brokers applying its Negative Gearing Policy.

The resources provide further guidance around ANZ’s treatment of key scenarios and are designed to support greater consistency when applying the policy.

Residential Broker Portal

• Brokerology Negative Gearing Topic
• Mortgage Credit Requirements > 5.4 Investment Income

ANZ Broker Portal

Available from 28 September 2026:

• Brokerology Negative Gearing Topic
• Mortgage Credit Requirements > 5.4 Investment Income

ANZ Commercial Lending Update

BAS Lending – Simplified Business Finance

ANZ’s BAS Lending provides eligible trading businesses with a streamlined pathway to finance using simplified documentation and self-declared financial information.

What Has Changed?

From 27 July 2026, ANZ’s streamlined secured and unsecured lending policies became known as BAS Lending.

Both secured and unsecured BAS Lending applications now require the most recent 12 months of Business Activity Statements (BAS), whether lodged monthly, quarterly or annually.

From 17 August 2026, borrowing limits also increased to:

• Unsecured term lending: Up to $500,000, increased from $300,000;
• Unsecured overdraft: Up to $300,000, increased from $100,000; and
• Secured lending: From $10,000 to less than $1.5 million.

Changes also apply to ANZ’s Streamlined Asset Finance Policies for motor vehicles and equipment.

Key Benefits

BAS Lending provides a simplified application process with reduced documentation requirements.

It may suit new or existing ANZ business customers where the business has operated for more than one financial year under its current management and ownership structure.

Eligibility at a Glance

Customers must generally:

• Have total commercial borrowings with ANZ of less than $1.5 million, including the new application;
• Generate at least 51% of income from business trading activities;
• Use more than 50% of the funds for acceptable business purposes;
• Hold their main business trading account with ANZ prior to facility drawdown;
• Meet ANZ’s eligible entity and industry requirements; and
• Provide acceptable security where required.

Security and LVR

LVR limits include:

• Up to 100% LVR for residential property; and
• Up to 80% LVR for commercial property.

For rural property and cash security, refer the scenario to an ANZ banker.

ANZ must hold the first or second mortgage over any security provided.

Documents Generally Required

Applications generally require:

• ANZ Business Credit application including recent self-declared business financial performance;
• Statement of Position (SOP);
• Last 12 months of BAS;
• Last 12 months of ATO Integrated Client Account Statements;
• Payslips where external PAYG income is being relied upon; and
• Latest ATO income statement where director wages from the business are being relied upon.

For full eligibility requirements, refer to ANZ’s broker resources covering Business Loans, Business Overdrafts, Bank Guarantees, Franchise Lending and Streamlined Asset Finance.

🏦 BANK OF MELBOURNE

Apportioning Policy - AKA: Common Debt Reducer!

Here is a useful policy reminder that can sometimes make a significant difference to serviceability.

Under Policy 03.17 – Serviceability Assessment, Bank of Melbourne provides options that may allow certain shared household expenses and common debts to be apportioned rather than the entire commitment automatically being attributed to one borrower.

What Does Apportioning Mean?

Apportioning means assessing the borrower based on their share of a genuinely shared household expense or common debt.

This can potentially be relevant where financial commitments are shared between:

• Spouses or partners;
• Siblings;
• Friends;
• Business partners; or
• Other parties with shared financial responsibilities.

1. Spousal Household Expenses and Common Debts

Under Policy 03.17 – Serviceability Assessment, section 2.5.1, there is an option to assess a borrower using their apportioned share of:

• Household living expenses; and
• Repayments for existing common debts, commitments or liabilities.

Where these expenses or debts are genuinely shared, the borrower may therefore be assessed based on their apportioned responsibility, subject to the relevant policy requirements.

2. Common Debts

Under Policy 03.17 – Serviceability Assessment, section 2.5.2, repayments on existing common debts may also potentially be apportioned.

For example, where two parties share responsibility for a debt, the assessment may consider the relevant borrower’s share of the repayments rather than automatically allocating the entire repayment to one person.

🏦 BANK OF SYDNEY

Policy Reminder: Up to 90% LVR With No LMI for Select Professionals

This is a very flexible policy worth keeping in the toolkit.

Bank of Sydney offers up to 90% LVR with no LMI for select professionals on eligible:

• Owner Occupied Principal & Interest loans; and
• Owner Occupied Construction Loans.

The offering extends across a broad range of professional occupations, subject to Bank of Sydney’s eligibility and lending criteria.

Eligible Professional Groups Include

🎓 Education

• Registered Teachers

🩺 Medical Professionals

Eligible medical professions registered with the relevant professional bodies can include:

• Medical practitioners;
• Nurses;
• Dental professionals;
• Optometrists;
• Pharmacists;
• Physiotherapists;
• Psychologists; and
• Chiropractors.

🔬 Engineering and Science

• Engineers – Engineers Australia;
• Geologists;
• Geophysicists; and
• Hydrogeologists – AIG/ASEG/GSA.

🚒 Emergency Services

• Firefighters – State Firefighter Association; and
• Police Officers – State Police Association.

💼 Finance and Actuarial

• Registered Accountants – CA or CPA;
• Actuaries – FIAA; and
• Financial Analysts – CFA.

🏗️ Property and Construction

• Architects;
• Project Managers – ABLIS;
• Quantity Surveyors – AIQS;
• Planners – PIA; and
• Surveyors.

For the full list of eligible occupations and accreditation requirements, refer to Bank of Sydney’s 90% No LMI Sheet.

Could Your Client Be Eligible?

The client must satisfy the relevant professional criteria, including:

Majority Income Earner
At least 50% of assessable income must be derived from an eligible profession.

Minimum Three Years’ Industry Experience
The applicant requires at least three years’ experience within the relevant field, aligned with their qualification.

Relevant Accreditation
The applicant must hold the applicable qualification or professional accreditation.

Property Location Criteria

The applicable LVR limits are:

• Up to 90% LVR with no LMI for metro locations; and
• Up to 80% LVR with no LMI for regional locations.

Normal eligibility, lending criteria and applicable conditions continue to apply.

🏦 MA MONEY

Expat and Non-Resident Lending Webinar

From Australians earning overseas income to non-residents looking to purchase property in Australia, MA Money may be able to assist across a range of international borrower scenarios.

MA Money is hosting a practical webinar with Van Vu, NSW BDM, and Sam Yoo, Credit Manager, covering its Expat Loans and Non-Resident Loans, including who the products are designed for, the scenarios they may support and key policy considerations.

The webinar will also cover MA Money’s latest policy enhancements and the extended Residential Rate Refresh available across eligible Expat scenarios.

What You’ll Learn

The session will cover:

• An overview of Expat Loans and Non-Resident Loans;
• The types of borrowers and scenarios each product may suit;
• Key eligibility and policy considerations;
• MA Money’s latest policy enhancements;
• Residential Rate Refresh options applicable to Expat Loans; and
• Real scenarios and practical solutions.

Event Details

Date: Wednesday, 30 September 2026
Time: 12:00pm–1:00pm AEST
CPD: 1 CPD point for attending

👉 Register for the MA Money webinar

That’s It for This Week

Have a great week, and I’ll see you next Monday.

Kath