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There was a time when mortgage lending could be neatly categorised; mainstream or non-conforming, simple or specialist. But as Broker Daily host Alex Whitlock observed, the modern lending environment no longer fits those boxes.
The borrower may not be complex, but their financial situation often is.
For Adelaide broker Alex Politis, of Homewood Finance, borrowing capacity has become the defining issue for borrowers.
“It’s a big issue,” he said, pointing to the widening gap between property prices and serviceability, particularly in growth markets like Adelaide.
For first home buyers, rising values and strict servicing buffers are creating tension between aspiration and approval. For investors, the challenge compounds as portfolios grow. The 3 % assessment buffer, applied across multiple properties, can quickly erode capacity.
Politis explained the practical impact of this in stark terms, “a 3% servicing buffer… on four or five investment properties really does make a big difference to borrowing capacity… It’s the difference in a big bank saying you can buy for $400k or you can go to a lender without the servicing buffer and buy for $7-800k.”
In other words, servicing methodology is no longer a technical footnote, it’s often the deal breaker.
Alex Whitlock with Alex Politis (Homeward Finance) and Wave Money’s Adam Robson and Jessica Hoare.
A recurring theme throughout the discussion was that what the industry once labelled “complex” is now routine.
Wave Money Senior Broker Relationship Manager Adam Robson challenged the terminology outright, “That word complex, I don’t call it complex, I call it common. The vanilla deals are the unicorns… the complex deals are everyday deals.”
“That word complex, I don’t call it complex, I call it common. The vanilla deals are the unicorns… the complex deals are everyday deals.
— Adam Robson (Wave Money)
Self-employed clients, layered income, trusts, guarantors, bonus structures and multi-property portfolios are no longer niche scenarios. They are the day-to-day reality for brokers operating in a maturing property market where borrowers are increasingly sophisticated.
Whitlock noted that Australians are thinking differently about wealth creation. Rather than a single investment property, many clients now actively seek to build multi-property portfolios, requiring structured advice and long-term planning.
Politis added “I think a lot of people out there… are looking to have that broker to take them on their finance journey like an accountant.”
The broker is no longer just transacting loans; they are guiding a strategy.
In the early 2000s, non-bank lenders competed primarily on rate and margin advantage through securitisation. Today, their value proposition is far more outcomes based.
Wave Money positions itself around maximising borrowing capacity, particularly for self-employed borrowers and investors, using alternative documentation (Alt Doc) policies and servicing nuances that differ from major banks.
Robson outlined practical examples: excluding credit card limits from servicing when balances are cleared monthly; accepting one year of bonus income rather than two; or assessing existing investment loans using actual repayments rather than inflated buffer rates.
These aren’t marginal tweaks. In one scenario discussed, excluding a $50,000 credit card limit added approximately $200,000 to a borrower’s capacity.
In another, accepting 100 per cent of a bonus (rather than the typical 80 per cent) helped a returning investment banker secure the home his family needed in Sydney.
The message was clear: Wave Money’s flexible approach isn’t about bending rules; it’s about understanding context and applying discernment and commonsense.
“Wave Money’s flexible approach isn’t about bending rules; it’s about understanding context and applying discernment and commonsense.”
While policy niches matter, the real differentiator is broker-lender direct communication.
Politis described the importance of early calls with Wave’s Broker Relationship team to workshop a scenario and test appetite before submitting. When a file lands on a lender’s desk with context already discussed, there are fewer surprises, and less friction.
Robson summed up the efficiency of direct communication succinctly: “A five-minute phone call can save two weeks of emails back and forth.”
“A five-minute phone call can save two weeks of emails back and forth.”
— Adam Robson (Senior Broker Relationship Manager, Wave Money)
In a market where clients are frequently under contract and time-sensitive, that responsiveness can be critical.
Hoare added that transparency, even when the answer is no, is equally important.
“A quick no is a good no… it’s saving our time, it’s saving your time and you can just get the borrower to another lender.”
For brokers, speed and clarity reduce reputational risk and improve the client experience, even when the solution lies elsewhere.
This scenario illustrates a common challenge that brokers are seeing more frequently: a borrower with a long and reliable financial history whose most recent year of financials does not tell the full story.
The client was a farmer in his 60s who had banked with one of the big four for more than 40 years. His entire financial relationship sat with the same institution, including his home loan, business lending and an overdraft facility linked to the farm.
But like many in the agricultural sector, recent years had been challenging but were not a reflection of their 30-year business journey.
After approaching his bank for support, the client was told they could no longer assist. The borrower was referred to Politis by a contact in agribusiness lending who was unable to find a workable solution.
The key issue was that the client’s most recent financial year, which traditional lenders rely heavily upon, did not reflect the underlying strength of the business built over decades.
At the same time, the borrower needed to restructure existing debt, release equity and access additional funds to upgrade the farm.
Without flexibility in income verification and servicing assessment, the deal was unlikely to proceed.
The loan was assessed using Wave Money’s Alt Doc framework, supported by a detailed accountant’s declaration from a professional who had worked with the client for more than 20 years.
Additional flexibility came from the ability to consider the broader financial structure around the farm. Certain liabilities associated with company trading activities, where the business was operating profitably, were able to be excluded from servicing calculations.
The structure also allowed the borrower to consolidate debt, access equity from the home and obtain additional funds to invest back into the farming operation.
For Politis, the case was a reminder of the role brokers and non-bank lenders can play in situations where major bank rigid assessment frameworks overlook the bigger picture.
“The case was a reminder of the role brokers and non-bank lenders can play in situations where major bank rigid assessment frameworks overlook the bigger picture.”
— Alex Politis, broker at Homeward Finance (Adelaide)
This scenario involved a self-employed business owner whose financial position was improving, but whose circumstances required a more nuanced assessment than many mainstream lenders could provide.
The client was a self-employed winemaker with a successful small business. His partner had recently returned to work after maternity leave, meaning the household income profile had changed within the past year.
Like many self-employed borrowers, the client’s income was not easily captured through standard PAYG verification or two years of full financials.
The couple had identified a property they wanted to secure for their family and needed a lending solution that reflected both the trajectory of the business and their evolving household income.
The borrower’s income profile required several layers of consideration.
First, as a self-employed applicant, traditional lenders would typically require a longer history of financials before recognising income at full value.
Second, the partner’s recent return to work following maternity leave meant that her income history was shorter than what many lenders require to include it in servicing calculations.
Finally, the couple needed additional support to meet deposit requirements for the property they wanted to purchase.
Taken together, the scenario required flexibility across multiple areas of credit assessment — income verification, servicing treatment and overall loan structure.
The primary borrower’s income was assessed using Wave Money’s Alt Doc policy, supported by appropriate documentation to demonstrate the strength and trajectory of the business.
The partner’s return-to-work income was also able to be considered, recognising that the change in employment status reflected a return to a sustainable income position rather than a temporary situation.
To strengthen the structure further, the couple utilised a parental guarantor, helping bridge the deposit gap and support the overall serviceability of the loan.
By layering these policy options together, the deal was able to proceed where a more rigid assessment model may have struggled.
“By layering these policy options together, the deal was able to proceed where a more rigid assessment model may have struggled.”
— Alex Politis, broker at Homeward Finance (Adelaide)
For Politis, the case was another example of how strong broker–lender collaboration can unlock solutions for borrowers whose circumstances are perfectly viable, but don’t always fit neatly within standard policy frameworks.
In a market increasingly shaped by automation at major institutions, direct access to decision-makers remains a differentiator for non-banks operating within defined niches.
Politis was clear that mainstream lenders retain their position in the market for certain borrower profiles, but as borrower scenarios grow more layered, having a broader set of non-bank lender relationships is essential.
For brokers, that means complexity isn’t a temporary phase, it’s the new normal.
“For brokers, that means complexity isn’t a temporary phase, it’s the new normal.”
— Alex Politis, broker at Homeward Finance (Adelaide)
Success will hinge not only on policy knowledge, but on proactive lender partnerships, direct access to decision makers to workshop deals and the confidence to navigate beyond the obvious.
In today’s lending environment, the “credit conversation” may be the most valuable step in the process.
Tune in to find out:
Alex Whitlock with Alex Politis (Homeward Finance) and Wave Money’s Adam Robson and Jessica Hoare.
Wave Money is one of Australia’s leading non-bank lenders delivering residential mortgage solutions to an increasing pool of borrowers whose needs are not being met by many bank and non-bank lenders.
