Weekly Kath's Credit Crunch 23rd June 2025 🌟

🏦 CBA Policy Updates – July 2025

🏗️ 1. Prefabricated Housing Policy Uplift – Effective Thursday 10 July 2025

CommBank is enhancing its prefab housing policy to increase the amount of funds available prior to affixation for customers building with approved manufacturers.

🛠️ Key Changes:

• Prefab build contracts up to $1.5M are eligible for progress payments before the dwelling is affixed to land, up to:

  • All customers:
    🔹 120% of land value (less any land debt)
    🔹 OR 60% of the build contract price

  • CommBank Assessed Manufacturers:
    🔹 150% of land value (less any land debt)
    🔹 OR 80% of the build contract price

📊 A Prefab Calculator will be made available on CommBroker to assist with calculations.

🧱 CommBank Assessed Manufacturers must meet the following criteria:

• Financial performance assessed as satisfactory by CommBank

• Onshore manufacturing facility

• Factory inspection completed

📌 Important Notes for Brokers:

• Do not recommend or promote specific builders. Clients must make their own choice.

• If a builder is interested in becoming an assessed manufacturer, they can register interest by emailing: [email protected]

• Refer to the Prefab Homes and Building/Construction Loans pages on CommBroker for:

  • Assessed builder list

  • New prefab calculator

  • Full lending procedure

⚖️ 2. Legal Advice Requirements Expanded for Guarantors – Effective Saturday 19 July 2025

CommBank is mandating independent legal advice for more guarantor types and removing the 3-day review rule for documents.

🧾 Who Now Requires Legal Advice + Statutory Declaration:

• ✅ Family Security Support

• ✅ Spousal Security Support (already required)

• ✅ Property Share (already required)

• ✅ Directors using their principal place of residence as the primary security

📌 Process Updates:

• Guarantor interviews are still required to screen for coercion/financial abuse

• No detailed commentary is required in your notes

• Interview commentary examples will be removed from CommBroker

• ApplyOnline will be updated from Monday 21 July

💻 New Flexibility for Guarantor Interviews:

• Can be conducted in person or via video without needing additional approval

• 3-day review rule is no longer required

• Guarantor Acknowledgement Form is no longer required

• Broker attestations for guarantors are now simplified

🔄 3. Bridging Loan Extensions Clarified – Effective Tuesday 1 July 2025

CommBank has clarified the criteria for extending bridging loans beyond 12 months, based on broker feedback around confusion.

📌 New Clarification Points Include:

• Clear sales strategy

• Reason for delay in selling

• Likelihood of sale during the proposed extension period

📋 More details will be available on CommBroker from 1 July.

📑 4. New Submission Notes Template – Available Monday 7 July 2025

A new Submission Notes Template will be launched to improve clarity and speed up assessment.

🛠️ Benefits:

• Helps assessors understand the application context

• Reduces unnecessary back-and-forth

• Supports faster approval turnaround

You can:

• 🖊️ Follow the structure when writing commentary in ApplyOnline

• 📎 Upload the template as a supporting doc

👉 Available on CommBroker from 1 July.

💰 5. Retained Savings Thresholds Increased (Home Guarantee Scheme)

Updated thresholds allow clients to retain more funds after settlement to manage unexpected costs.

💸 New Retained Savings Limits:

• Established dwellings: increased from $13,000 → $23,000

• Construction loans: increased from $23,000 → $33,000

📌 These figures are guides only — customers must still contribute their maximum available savings upfront to meet Scheme eligibility.
Additional retained savings may be approved case-by-case, with Product Team approval.

🏦 ME Bank Updates – Effective Monday 23 June 2025

💼 PAYG Bonus Income Clarification:

• Must be employed 12+ months with current employer

• Annual bonuses: at least 2 payments over past 2 years (average used)

• Frequent bonuses (e.g., monthly): at least 2 in past 12 months (sum used)

• Up to 80% of gross bonus can be used in servicing

💰 PAYG Commission:

• Income Tax Statement (PAYG Summary) is now accepted as verification for commission income

👵 Exit Strategy for Applicants Aged 50+:

• Applies where loan term extends beyond retirement age

• Must supply:

  • Superannuation statement

  • Projected balance at retirement

  • Showing loan can be cleared & modest lifestyle maintained

• Refer to Exit Strategy Fact Sheet on Broker Portal (updated 23 June)

📈 Investment Loan Policy:

• 50% cap removed on loan amounts for personal investment in shares/managed funds

• Allows greater flexibility for borrowers

🏦 ANZ Credit Policy Updates – Effective Monday 23 June 2025

🔒 Actual Repayments for Fixed Non-Mortgage Loans:

• You can now use actual repayments in serviceability for non-mortgage fixed loans

• Must provide evidence repayment is fixed

✅ Acceptable documents:

• Bank statement or screenshot

• Loan contract

• Letter of offer

ApplyOnline will be updated to support this.

🏢 Business Overdraft Serviceability:

• Business Overdrafts now expensed over 10 years (was 7)

• Personal Overdrafts remain expensed over 7 years

🧾 New ApplyOnline field added to differentiate:

• “Overdraft” + “Business” = 10-year term

• “Overdraft” + “Personal” = 7-year term

📌 Reminders

🚀 Apollo (by LMG)

Boldly going where other lenders don’t!

With Apollo Pro 80–85% No LMI, you can offer:

• Refinance with cash out

• Debt consolidation

• Investment lending

• Interest-only repayments (owner-occupier & investment)

✅ Strong option for complex or multi-purpose borrower scenarios.

💡 AMP – 10-Year Interest-Only Strategy

AMP is offering:

• Up to 10 years Interest-Only on new loans

• Existing clients may apply for an extension (subject to assessment)

• AMP will contact eligible clients who are nearing the end of their current IO term

🧠 Great for:

• Retirement planning

• Wealth-building

• Improving short-term cash flow

📌 These customers will remain broker-originated – keeping your trail intact.

🎓 Upcoming Broker Education

📚 Resimac – Prime Alt Doc Webinar

🗓️ Tuesday 24 June 2025 | ⏰ 10:00am – 10:30am AEST
👉 Register via Microsoft Teams

Learn how to structure loans for self-employed clients using:

• Accountant letters

• BAS statements

• Case studies and packaging tips for faster approval

🏢 Orde Financial – Commercial Lending Masterclass

🗓️ Tuesday 24 June 2025 | ⏰ 11:00am – 12:00pm AEST
👉 Register Now

Covering:

• SMSF + investor opportunities

• Vacant land, retained stock, best use strategies

• Commercial assets for short-term funding

☕ Coffee & Credit with Kath – Tiny Homes Edition

☕ Coffee & Credit with The Brokers' Bible is Back – Let’s Talk Tiny Homes! 🏡
Join me next week for our next bite-sized education session where we’re diving into all things Tiny Homes and Granny Flats— what lenders think, how to structure the deal, and the quirks you really need to know before submitting.

This one’s perfect if your client is:
✅ Building a tiny home
✅ Adding a granny flat
✅ Living the minimalist dream — but needs financing that’s far from simple

🔍 We’ll cover:
• Lender policy (yes, there are a few curveballs!)
• Servicing challenges + workarounds
• Real-life broker wins and where deals go wrong

💡 Walk away with:
• A better understanding of which lenders will look at it — and how (using The Brokers' Bible
• Tips to avoid rework
• Tools to help your client get approved the first time

📌 These sessions are short, sharp, and packed with practical takeaways.
So grab a coffee and join me — this is one you don’t want to miss!
👉 Click here to register: REGISTER HERE