Weekly Credit Crunch 6th July 2026 🌟

Good morning Brokers 👋

There’s plenty happening in lender land this week, so grab a coffee and let’s dive in!

Negative gearing changes continue to reshape servicing across multiple lenders, Housing Australia's updated 5% Deposit Scheme is now in play, and if you've got SMSF residential deals in your pipeline, the clock is ticking with key contract deadlines fast approaching.

There are also a few lender-specific updates worth keeping on your radar – from servicing calculator changes and fee updates through to new policy opportunities for self-employed clients.

As always, I've pulled out what actually matters, where your deals could get caught, and the opportunities you don't want to miss.

More power, more specialist depth under LMG Lending

Before we get into it… did you see last week’s announcement from LMG? They’ve announced three new additions to the LMG Lending portfolio: Skip, Thinktank and Brighten.

That's more lending solutions for your toolkit – from 98% LVR low deposit lending through to commercial, SMSF, specialist residential, construction and reverse mortgages.

If you haven't had a chance to look at what each lender offers, LMG is running a series of short launch webinars over the coming weeks.

Upcoming webinars (click the link to register!)

• Thinktank by LMG – Tuesday 7 July | 12:00pm (AEST)

• Skip by LMG – Wednesday 8 July | 12:00pm (AEST)

• Brighten by LMG – Tuesday 28 July | 12:00pm (AEST)

🏦 AMP

AMP Bank Update

Join AMP’s Bank Update to stay informed on the latest insights, products, and enhancements.

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 

 

🏦 ANZ

ANZ Unpacked: What’s New and Topical Insights

ANZ is hosting a practical broker update covering key topics impacting brokers and their clients.

Webinar details:

• Date: Thursday, 9 July
• Time: 12:00 pm – 1:00 pm

Topics covered:

• First Home Buyers 5% Government Guarantee Scheme
• PAYG & other income refresher
• Bridging finance
• New ANZ Broker Portal

👉 Register here

🏦 Apollo

Companies & trusts pricing special - extended until 24 August 🚀

Apollo has reduced rates by 40bps on Apollo Plus Full Doc for non-trading companies and trusts until 24 August.

 

🏦 Bank First

Effective Wednesday 1 July 2026, the Australian Government 5% Deposit Scheme (Scheme) will be making a number of changes including:

 

• Formalising Retained Savings policy

 

Retained savings refers to the funds remaining with the borrower upon completion of their property purchase. This balance is calculated after accounting for the home price, government duties, and all transaction-related costs, and is subject to the following caps:

• Up to 6 months’ living expenses (used for serviceability), and
• Up to 6 months’ scheduled loan repayments

For applications involving Newly Constructed Dwellings (not including off-the-plan acquisitions), an extra buffer for retained savings of up to 5% of the total loan balance following settlement is permitted.

 

• Updating Property Price Caps for Darwin

 

The Property Price Caps have been adjusted for the Northern Territory; Darwin is now distinctly capped at $750,000, while a $600,000 limit applies to the balance of the territory.

 

• Adding NEW regional centres in NSW

 

Four new regional NSW centres have been added to the NSW capital city price cap.Central Coast, Coffs Harbour - Grafton, Mid North Coast and Richmond Tweed regions are now all classified as regional centres and can access the $1,500,000 price cap

 

• Revising the Home Buyer Declaration Form

 

The FY 2026-27 Home Buyer Declaration will be available via the Bank First Broker Portal from 1 July 2026, and on Apply Online starting 16 July 2026.

While the 2025-26 version remains valid until 31 July 2026, any applications submitted under the updated Retained Savings policy must utilise the new 2026-27 form immediately.

Effective 1 August 2026, the FY 2026-27 Declaration will be the only version accepted for all Scheme reservations.

 

🏦 Better Choice

SMSF LRBA Update – Better Choice 

From 10 August 2026: SMSFs can no longer use LRBAs to purchase residential property under the new legislation.

✅ New applications:

• Accepted if the contract is exchanged on or before 10 August 2026.
• 🌴 Queensland exception: Applications accepted until 20 July 2026 with a signed contract (subject to finance), provided the contract is exchanged by 10 August 2026.
• 📝 Both the SMSF and property bare trust must be established at the time of application.

🔄 Applications in progress: Submit the exchanged contract before 10 August 2026 to continue through to settlement.

🏢 Commercial SMSF lending: Not affected by the legislative changes.

🔁 Residential SMSF refinances: Still available if the trustees remain unchanged.

⏱️ Current turnaround time: 3 business days for complete SMSF applications.

 

🏦 Bluestone

SMSF Lending Update – Key Highlights

• ✅ SMSF lending available for both residential 🏡 and commercial 🏢 properties.
• 📅 Residential purchases: Purchase contract must be signed by 9 August 2026.
• 📝 Important requirements:
• ✔️ Contract must show the correct legal name
• ✔️ Single Acquired Asset Rule applies (e.g. apartments & car parks on separate contracts must be structured correctly)

⭐ SMSF Policy Benefits

• 💧 No liquidity requirements
• 🚪 No early exit fees
• 📍 No postcode or high-density/high-rise restrictions
• 🏠 Residential & commercial security accepted
• 💰 Free valuations
• 📉 No minimum credit score
• 👍 Paid defaults under $500 accepted
• ✍️ ApplyOnline with e-sign capability
• 🔄 Purchases, refinances & fully assessed pre-approvals
• 💵 Additional SMSF contributions allowed

🚀 Boost Borrowing Power

• 💡 SMSF Additional Contributions can increase borrowing capacity.
• ✅ Only need to show the ability to contribute—no commitment to make future contributions.
• 🚫 No proof of liabilities outside the SMSF required.
• 💼 Available under standard policy (not an exception).
• 💲 Minimum $200K net assets required to cover the deposit and costs.

 

🏦 Commonwealth Bank 

Changes to the Online Servicing Calculator 

On Saturday 27 June, the Online Servicing Calculator (SC) was updated to allow neutral gearing (tax deductibility) to be applied to investment home loan applications.

What's changing?
The existing “Tax Deductible” button on the calculator has been removed and replaced with two new button options:

• Is it Tax Deductible?

• Apply negative gearing treatment

These new options allow you to select the appropriate tax treatment for eligible investment properties ensuring the servicing assessment accurately reflects the application details.

What you need to do

• Use the updated Online Servicing Calculator, now available on CommBroker.

• To ensure tax deductible benefits are applied correctly, confirm the selected loan purpose is eligible under policy requirements.

Additional guidance

The Training Hub will be running a short session demonstrating how to use the updated calculator. Download the calendar invitation for your preferred session:

• Wednesday 8 July 3:00pm - 3:30pm

If you are uncertain whether a specific customer scenario meets the policy requirements for negative gearing or tax-deductible benefits, please contact your Relationship Manager who will work with our credit team to provide further guidance.

🏦 Deposit Power

Grow your business with Deposit Bonds 

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 

 

🏦 Granite

Residential SMSF Deals to Granite 

🏡 SMSF LRBA Residential Property Changes – Key Points

• 📅 Rules are changing: SMSF clients can still use LRBAs to buy residential property if contracts are exchanged before 10 August 2026.
• ⏳ Act now: Submit SMSF residential loan applications to Granite as soon as possible.
• ✅ Conditional/Approval in Principle: Issued before 10 August 2026 remain valid for applications up to 9 August 2026.
• ✔️ Unconditional Approval: Issued before 10 August 2026 remains valid for residential SMSF LRBA applications after 10 August 2026.
• 📖 Broker Guide (FAQs):
• 📆 Contract exchange & finance approval deadlines
• ⚠️ Key LRBA rule changes
• 🏢 Business Real Property borrowing rules
• 🔮 Future residential & commercial borrowing scenarios

Granite Investor Lending Update – Negative Gearing Changes 

From 1 July 2026: Negative gearing benefits will no longer be included in serviceability assessments for established residential investment property purchases.

⏰ Applications in progress: Must be fully submitted by 11:59pm on 30 June 2026 to be assessed under the current policy.

✅ Existing pre-approvals: Will remain under the original policy unless there are material changes, such as:

• 💰 Changes to income or liabilities
• 📈 Increased loan amount or term
• 🔄 Any other changes requiring reassessment

🛠️ Updates: Granite’s serviceability policy and servicing calculator will be updated from 1 July 2026, with further notification once the new calculator is available.

🏦 Great Southern Bank

Australian Government 5% Deposit Scheme Update

The following changes will apply to the Australian Government 5% Deposit Scheme effective from Wednesday 1 July 2026. 

The Property Price Caps for the Northern Territory have been adjusted; Darwin is now distinctly capped at $750,000, while a separate limit applies to the balance of the territory.

Retained savings requirements have been revised as follows: 

• New and Existing Home Loans Customers can retain up to 6 months of living expenses and up to 6 months of loan repayments after settlement.
• Construction Loans Customers can retain up to 6 months of living expenses, 6 months of loan repayments, plus an additional 5% of the total loan amount after settlement.
  
  

🏦 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 

🏦 ME Bank

Updated CAT version 1.6

Effective Monday 29 June 2026, ME’s Credit Assessment Tool (CAT) will be updated to reflect the revised 2026-27 tax rates.

These changes will apply to servicing calculations from Monday 29 June 2026

For assistance with ME’s servicing calculator, please refer to the CAT User guide on the Broker Portal

In-flight applications

Applications already in progress (not yet conditionally approved) will be assessed using the updated tax rates. As these changes are more beneficial for customers, work-in-progress applications are not expected to be adversely impacted.

Exclusive Broker Webinar

Join ME for an exclusive broker webinar with BOQ’s Chief Economist, Peter Munckton. In this session, Peter will dive into the latest economic outlook for Australia and discuss how key developments could impact you and your clients.

When: Wednesday, August 12

Time: 11am - 12pm AEST

Where: Online

Register here to secure your spot!

🏦 MyState

From 1 July 2026, Housing Australia has updated the 5% Deposit Scheme. In line with this, MyState has updated how they assess retained savings.

Retained savings – what’s new

MyState is now asking customers to contribute as much of their own savings as possible to support the lowest achievable LVR, while still keeping a practical buffer after settlement.

Post-settlement retained savings must not exceed:

• Up to 6 months’ living expenses (used for serviceability), and
• Up to 6 months’ scheduled loan repayments

Requests above these limits may be considered case-by-case, with clear rationale and supporting evidence.

These changes align with Housing Australia’s updated expectations.

Existing reservations

• Reservations approved before 1 July 2026 remain valid for their existing 90-day period
• Standard extension processes continue to apply

🏦 NAB

NAB Tailored Home Loan Fee Update 

 From 31 August 2026: Monthly loan service fee increases from $8 ➜ $12 for new and existing NAB Tailored Home Loans.

📧 Customer notifications: Letters/emails begin 6 July 2026. New applications reflect the new fee from 7 July 2026.

💡 Reason for the change: Supports ongoing improvements to home loan features, including:

• 🏦 Up to 10 linked offset accounts (for eligible variable rate loans)
• 💸 Flexible redraw and repayment options
• 📱 Home loan management via the NAB app

📝 In-flight applications:

• ✅ Approved on/before 6 July 2026: Letter of Offer shows $8 (customers will be notified before the fee increases).
• ✅ Approved after 6 July 2026: Letter of Offer shows $12.

🎉 Fee waivers: Existing fee waivers continue, and eligible customers will automatically receive any new applicable fee waivers.

 

🏦 Resimac

💼 Self-Employed Exception Opportunities

• 👨‍💼 Good news: Some newly self-employed applicants who don't meet the standard 24-month ABN and 12-month GST requirements may still be approved on an exception basis.
• ✅ Applications are assessed based on:
• 💰 Overall financial strength
• 🛠️ Industry experience
• 📈 Business performance and stability
• 💵 Income sustainability and servicing capacity
• 📋 To assess an exception, provide:
• ✔️ Completed servicing
• ✔️ CCR with no additional adverse credit issues
• ✔️ Latest BAS statements (for Alt-Doc applications)
• ✔️ Completed policy exception template
• 🤝 Opportunity: If you have self-employed clients who are just outside the ABN/GST policy, submit the scenario for review—there may be flexibility to help them.

🏦 Suncorp

Policy and Process Updates

Capacity to Repay Calculator updated following negative gearing changes 

The Suncorp Bank Capacity to Repay serviceability calculator based on the recent Federal Government changes to negative gearing has been updated. Please continue to use our serviceability calculator on their portal  

 

🏦 Teachers Mutual Bank Limited

Australian Government 5% Deposit Scheme | 1 July 2026 

Some important changes to the Australian Government 5% Deposit Scheme are effective from 1 July 2026. 

What are the changes

Property Price Caps

• There are an additional four NSW regional centres that will receive the capital city and regional centre price cap that is currently at $1,500,000. Central Coast, Coffs Harbour – Grafton, Mid North Coast, Richmond Tweed.
• Northern Territory will be split to align with median house prices across the Territory, similar to other states and territories under the Scheme, by separating the capital city with the rest of the territory. Darwin $750,000, Rest of Territory $600,000.
• From the effective date refer to the Scheme Property Price Caps page.

Refinancing

• Improving overall borrower experience, applicants who are refinancing from one Scheme lender to another, are no longer required to pay for refinancing costs out of pocket. Costs can be capitalised into the new loan.
• Funds can only be used for refinance costs and not for a top up.

 Home Buyer Declaration, Scheme Guides and Fact Sheet

• These have been updated for FY 2026-27 and will be available within the Broker portal from the effective date.

Home Buyer Declaration

• Mandatory | The email or phone number of both the applicant, and the witness, are mandatory fields within the declaration. If these mandatory fields are not completed when the form is submitted, it will be returned for completion.
• Optional | An electronic signature is now acceptable on the declaration.

Broker mandatory obligations

• Reservations for the Scheme made from the effective date must have the FY 2026-27 Home Buyer Declaration completed and executed in its entirety.
• In accordance with existing requirements, you must provide each eligible applicant with the Home Buyer Declaration and the relevant Scheme Information Guide.
• You must adhere and comply with all Scheme and Teachers Mutual Bank Limited criteria and requirements.

Reservations under the Scheme

In addition to broker mandatory obligations home loan applications;

• must be Owner occupied purpose, Principal and Interest (P&I) repayments with a loan term of up to 30 years. Exception: Construction purpose, interest Only (IO) repayments are allowed during the construction period for maximum 12 months.
• will be applicable to receive the respective product >70 - <80% LVR advertised interest rate (where applicable).
  
  

🏦 Westpac 

Periodically, Westpac runs a campaign to ensure existing home loans are correctly classified based on the purpose of the loan.

What's changing

From 30 June 2026, selected Westpac customers will be notified of a reclassification of their home loan. This will be from Owner Occupier (OO) loan to Investment Property Loan (IPL) or vice versa, depending on if the customer's residential address matches the address of any property linked to the loan.

These customers will also receive an SMS reminder on 14 July 2026.

The reclassification will take place 10 August 2026.

What customers should do

Customers can request an opt-out from the reclassification by providing a valid reason and also supporting evidence for IPL to OO.

All customers will be provided with an opt-out form and Reply Paid envelope.

To opt-out of the product switch:

• OO to IPL customers can complete the opt-out form with the required supporting evidence which must be returned by post only.
• IPL to OO customers are only required to complete the opt-out form and can return it using the Reply Paid envelope, or by email.

If a valid reason is not received by:

• 28 July 2026 for opt-out by post (all customers); or
• 31 July 2026 for opt out by email (IPL to OO only).

The reclassification will proceed on 10 August 2026. 

 

🏦 Westpac Group

Includes Bank of Melbourne, BankSA and St.George

Following the Federal Government’s 2026-27 Budget announcement in May, and the subsequent passage of legislation relating to negative gearing by the Parliament on Thursday 25 June 2026, our credit policy and supporting procedures have now been updated to reflect these changes. These updates apply from Monday 29 June 2026.

What’s changing

We have updated our credit policy and procedures to ensure our serviceability assessment complies with the new legislation. This will help you:

• Distinguish between:
• Negative Gearing (NG); and
• Rental Income Tax Deductions (RITD).
• Apply revised eligibility rules based on:
• Property type; and
• Property acquisition timing.

Eligibility for negative gearing

The new legislation limits access to negative gearing benefits on some investment properties purchased after 7:30pm AEST on 12 May 2026. Over time, some customers may be able to access negative gearing for some properties, but not others. 

Use the eligibility rules within credit policy to determine whether customers are eligible for negative gearing on all investment property – negative gearing can only be applied in serviceability where customer eligibility is met. 

Refer to BrokerHub to review the updated credit policy sections below:

• 03.09 Eligibility
• 03.11 Loan Application and Approval

For more information on NG and RITD, including verification requirements, refer to this section below:

• 03.17 Serviceability Assessment > 2.12 Rental income tax deductions for Australian investment properties (Negative Gearing).

For new lending applications

• Identify if your customer’s application is affected by the changes.
• If negative gearing is not allowed, first check if the customer can service without negative gearing or rental income tax deductions -
• If your customer can service the loan, process the application following standard processes ensuring that no tax deductibility is applied.
• If your customer requires a tax deduction to service, follow the relevant procedures and use the updated Serviceability Calculator and process to complete the assessment.

For In-flight applications

• If the application is already Unconditionally Approved, proceed as normal. Where application changes result in serviceability needing to be re-assessed, updated policy may apply. 
• For Conditional Approvals / In Principle Approvals (IPAs) / Approval in Principle (AIPs):
1. You must identify if the customer meets updated policy to apply negative gearing in all instances.
2. Where a re-assessment is necessary against updated policy, you must follow the procedures.

New Serviceability Calculator

To support customers seeking RITD in servicing where negative gearing is not permitted, use the new Serviceability Calculator in BrokerHub to apply RITD. 

 

🏦 Zeus

Changes to Negative Gearing Assessment

Following the 2026 Federal Budget, the Government has announced changes to the treatment of negative gearing for established residential investment properties purchased after 12 May 2026. 

📅 From 1 July 2026: Applications for established residential investment properties will no longer include negative gearing benefits in serviceability assessments.

⏰ Current pipeline: Investor applications must have been submitted by 30 June 2026 to be assessed under the old policy (including negative gearing benefits).

✅ Existing pre-approvals: Remain valid under the original policy if there are no material changes (e.g. income, liabilities, loan amount, or loan term).

🔄 Pre-approval extensions: Not available. Once a pre-approval expires, a new application must be submitted and assessed under the current policy.

🛠️ Policy updates: Serviceability policy changes take effect 1 July 2026, with the servicing calculator to be updated shortly.