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This week, lenders have updated 5 per cent Deposit Scheme requirements and eased rental shading for eligible investors, while aggregators have continued to expand their white label lending ranges with new specialist partnerships.
Westpac and St.George update servicing and lending policy
In their Simplify to Amplify webinar, Westpac and St.George have introduced a range of policy updates covering investment property servicing, Division 7A, and inter-entity loans and retained savings requirements under the 5 per cent Deposit Scheme.
- Investment property servicing: Effective 17 August 2026, Westpac and St.George have increased the amount of rental income recognised in serviceability assessments for eligible residential investment properties from 90 per cent to 95 per cent (a reduction in rental income shading from 10 per cent to 5 per cent). The change applies to eligible properties contained within Category 9 postcodes and is supported by Westpac’s latest Serviceability Calculator. All other postcode categories remain at 90 per cent or lower.
- Division 7A and inter-entity loans: Both banks have introduced dedicated assessment processes for both loan types. Division 7A loans will be assessed using the ATO benchmark interest rate and seven-year default loan term, with accountant’s letters no longer mandatory. Inter-entity loans can also be verified using documents including credit contracts and loan statements, without an accountant’s letter being mandatory.
- 5 per cent Deposit Scheme: There has also been an update to retained savings policy to include six months of loan repayments plus six months of living expenses, with the previous $10,000 buffer removed. For construction loans, retained savings are now assessed at 5 per cent of the total loan amount, replacing the previous 10 per cent of construction costs requirement. The updated methodology applies to standard and construction Home Guarantee Scheme applications, including pipeline applications where a decision is rerun, or the loan is not yet unconditionally approved.
Finsure expands white label range
Finsure has expanded its white label lending offering with the launch of Finsure Loans Ascend, backed by Australian Secure Capital Fund (ASCF).
The new offering gives brokers access to private lending solutions including bridging finance, first and second mortgages, and short-term business loans, providing an alternative for customers whose borrowing needs fall outside traditional lending criteria.
AFG launches white label bridging loan
Australian Finance Group (AFG) has launched AFG Home Loans Bridge, a new white label bridging finance product developed with fintech lender Bridgit.
The product is available nationally through AFG brokers and is designed for customers who want to purchase their next property before selling their existing home. It supports scenarios including upsizers, downsizers, retirees, and customers looking to unlock equity while transitioning between properties.
The product sits under the AFG Home Loans brand and provides brokers with a dedicated pathway for bridging finance through AFG’s lending suite.
Zeus by LMG updates lending policy
Zeus by LMG has introduced a range of policy changes effective 17 August 2026, including updates to LVRs, loan limits, borrower assessment, and verification requirements.
Maximum LVRs and loan limits will now vary by locality, with changes improving options in some regional areas. The lender has also expanded assessment to non-spousal and non-de facto borrowers, simplified liability verification, and introduced tiered funds-to-complete verification based on LVR.
Other changes include updated construction progress payment schedules, the application of notional rent regardless of DTI, and updated negative gearing treatment to align with legislative changes. Company and trust verification has also been simplified to one year of tax returns or financials.
Equity release is capped at the lower of $200,000 or 20 per cent of the security value, while private certifiers are now accepted alongside council-approved plans. Additional qualifying criteria will apply to Zeus Bolt under its Streamlined Refinance process.
ANZ updates 5% Deposit Scheme retained savings policy
ANZ has revised its retained savings requirements for borrowers using the Australian government 5 per cent Deposit Scheme, with the changes taking effect from 17 August 2026.
Under the updated policy, the previous $30,000 cap has been replaced with a calculation based on the borrower’s circumstances. The maximum retained savings will comprise:
- Six months of living expenses used in the serviceability assessment, based on the higher of declared expenses or HEM.
- Six months of actual home loan repayments.
For construction loans, borrowers can retain a further 5 per cent of the total loan amount to account for potential construction variations.
ANZ has also added a new ApplyOnline compliance question, requiring brokers to confirm that customers have received the relevant Australian government 5 per cent Deposit Scheme Information Guide.
Aware of a product or policy update that brokers should know about? Leave it in the comments below.
See last week’s policy changes here.
[Related: Product policy tops broker recommendations]
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