Weekly Credit Crunch - 3rd August

🚨 REMINDER: SMSF Residential Lending Cut-Off — One Week to Go

Under the incoming changes to SMSF borrowing rules, new borrowing to purchase a residential investment property will only be permitted where the Contract of Sale is signed and dated on or before 9 August 2026. That means contracts must be exchanged before 10 August 2026.

⚠️ Important: Some lenders have already closed submissions, while others have earlier internal processing cut-offs.

Brokers should urgently:

• Confirm the Contract of Sale is signed and dated by 9 August 2026

• Check the lender’s individual submission deadline

• Lodge any outstanding applications immediately

• Avoid leaving submissions until the final day

There is now just one week remaining — so this is very much a “drop everything and check your pipeline” moment.

🏦 AMP Launches Equity Flex

AMP has launched Equity Flex, a new investment lending solution designed to give eligible, experienced property investors greater repayment flexibility and more certainty when planning for the long term.

Key Features

• Up to 10 years of interest-only repayments
• No reassessment during the initial interest-only period
• Loan terms of up to 40 years
• Offset and redraw functionality
• Maximum 80% LVR

AMP will be covering the new product as part of its upcoming Bank Update webinar, along with the latest product insights and enhancements.

Webinar Details

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

Topics Covered

• AMP Platform
• SMSF SuperEdge product
• New product launch: Equity Flex

👉 Register here

🏦 Bank of Us — Policy Updates

Employment During Probation

Applicants currently serving a probationary period may now be considered where they have either:

• At least six months’ continuous employment in the same industry; or
• At least three months in their current role, with no break between positions exceeding 28 days.

The update places greater emphasis on overall employability, industry experience and continuity of employment.

Australian Government 5% Deposit Scheme

Bank of Us has also updated its policy to align with Housing Australia’s latest scheme requirements.

Retained savings after settlement must not exceed:

• Six months of verified living expenses and loan repayments; plus
• For construction loans, an additional 5% of the approved loan amount.

Amounts above these limits will be treated as a policy exception and must be supported by evidence of a reasonable future need, such as disability-related property modifications or anticipated medical expenses.

🏦 Brighten by LMG Is Now Live

Brighten by LMG has officially joined the LMG Lending portfolio alongside Zeus, Apollo, Bridgit, SKIP and Thinktank.

Who It’s Designed For

✓ Expat returnees, non-residents, foreign-income earners and visa holders
✓ Construction borrowers, including owner-occupiers, investors and owner-builders
✓ Reverse mortgage clients seeking equity release
✓ SMSF investors, self-employed borrowers, companies and trusts
✓ Commercial borrowers, including scenarios involving non-standard security

🏦 Bluestone — Servicing Highlights Brokers Need to Know

Here are some of the key servicing features available with Bluestone:

• Negative gearing accepted across all investment lending, including loans held in company or trust names
• Investment property expenses and private health insurance included within HEM
• Unlimited and uncontrolled cash out supported by a client statutory declaration
• Trading company and asset-holding company can be the same, with no additional interest rate loading
• ATO debt refinancing with no dollar limit under Near Prime
• Unlimited unsecured debt consolidation
• Where CCR repayment history is unavailable, Bluestone will review the physical statements provided
• Company and trust debts may be excluded from servicing where an accountant confirms the entity is profitable or self-sufficient

Bluestone National Roadshow

📅 Wednesday, 12 August 2026
⏰ 10:00 am–2:00 pm
📍 Carousel, Albert Park

Join Bluestone’s Sydney head office team and industry leaders to explore:

• Diversification and future-proofing strategies
• Growth opportunities through specialist lending
• The latest Bluestone product and policy updates
• Networking with industry peers
• 4 CPD points

Spaces are limited.

👉 Register now

🏦 Granite — SMSF Residential Update

Granite is now only accepting new SMSF residential applications where a Contract of Sale is included at submission.

Under the incoming LRBA changes, contracts must be exchanged before 10 August 2026.

Good to know: Any Granite unconditional approval issued before 10 August 2026 will remain valid after the cut-off.

🏦 ING — Equity Release for Investors

In Part 2 of ING’s Investor Refinance Series, the focus is on how refinancing may help investors unlock equity for their next move.

Equity release may assist with:

• Debt consolidation
• Property renovations
• Funding a future investment purchase
• Supporting portfolio growth

Guidance on lending criteria and submission:

• Refinance up to 90% LVR (with LMI)
• Position cash-out for investment - Helping customers prepare for portfolio growth
• Strong servicing for investors - Up to 95% of rental income may be considered
• Split lending by purpose - Keeping owner occupied and investment pricing clear
• Simpler LMI process - Assessed within ING, which may help reduce delays.

🏦 ME Bank — Exclusive Broker Webinar

Join ME Bank and BOQ Chief Economist Peter Munckton for an exclusive broker webinar covering the latest Australian economic outlook.

📅 Wednesday, 12 August
⏰ 11:00 am–12:00 pm AEST
💻 Online

👉 Register here

🏦 MyState Bank

Update: Offset accounts are now available on Australian Government 5% Deposit Scheme Loans.

🏦 Pepper Money

Pepper Money has announced a number of market-leading policy enhancements across its Prime and Near Prime Clear Loan options. Here’s what you need to know

Firstly LARGER loan amounts

• Loans increased up to $5 million at 80% LVR
• Loans increased up to $3 million at 95% LVR
• Now accepting  Category 1–4 locations and
• Regional lending limits now aligned with metro limits
•  No caps on high-density securities

LVR Increases:

• For Full Doc purchase applications:Up to 98% LVR inclusive of the Lender Protection Fee
• For Alt Doc applications:  Up to 95% LVR

AND HERE’S WHERE IT GETS EVEN BETTER…

These updated policy options may also be combined with:

• Loan terms of up to 40 years
• client purchasing a one-bedroom apartments from just 30m² in a high density security

That combination could be a genuine game changer for brokers working with:

• Higher loan amounts
• Regional borrowers
• High-density properties
• Smaller apartments
• Low-deposit purchasers
• Self-employed and Alt Doc clients
• Borrowers needing a longer loan term to improve servicing

This is a significant expansion of Pepper Money’s lending appetite and could create genuine opportunities for scenarios that may not fit within traditional lender policy.

🏦 Thinktank by LMG

Residential SMSF Update

Effective COB 31 July 2026, Thinktank will no longer accept Residential SMSF Approvals in Principle.

Applications can still be submitted where they include a fully executed Contract of Sale signed and dated on or before 9 August 2026.

Pipeline Applications

• The Contract of Sale must be signed and dated by 9 August 2026
• Applications may still be lodged after this date
• Eligibility will depend on the contract meeting the required deadline