Rates are up, but some lenders are quietly changing the rules. What this week's policy changes mean if you're self-employed, investing or buying before you sell

Home loan rates have gone up four times this year, and most of the headlines have been about bigger repayments and softer prices. But this week a handful of lenders quietly changed who they will lend to and how they assess your income. If you are self-employed, an investor, an overtime earner or trying to buy before you sell, those policy changes can matter as much as the rate.

Why lender policy matters as much as the rate

When you apply for a home loan, the interest rate is only half the story. Before a lender says yes, it runs a serviceability assessment: it works out what income it is prepared to count, what living expenses it assumes, what other debts you have, and whether you could still meet repayments if your rate were about 3 percentage points higher under APRA's serviceability buffer.

Every one of those inputs is a policy choice, and lenders choose differently: how much rent or overtime they count, and whether a business owner needs two years of tax returns, one year, or Business Activity Statements instead. That is why the same person can be told "no" by one lender and offered a noticeably larger loan by another, at the same point in time.

It is also why a pre-approval, or a knock-back, from a few months ago may not be the answer today. Broker Daily's round-up of lender changes for 15–22 October, published on 23 October, is a good example of how much can shift in a single week.

If you're self-employed

Self-employed borrowers often hit the same wall: the business is doing well now, but the last lodged tax returns don't show it yet.

Firstmac alt-doc. Firstmac, a non-bank lender that Australian Broker says manages about $23 billion in residential mortgages, has launched an alternative documentation (alt-doc) home loan. Instead of full tax returns, eligible borrowers can verify income with six months of lodged ATO Business Activity Statements. It is aimed at business owners who have traded for at least two years and have a strong credit profile. According to Broker Daily and Australian Broker, rates start from 6.99% for an owner-occupied, principal-and-interest loan at a 70% loan-to-value ratio (LVR), with variable or fixed rates, interest-only options and an optional offset available, a low application fee and no ongoing monthly fees. Australian Broker reports both owner-occupiers and investors can apply.

Bluestone full-doc. Bluestone now needs just one year of tax returns plus a Notice of Assessment for full-doc verification, rather than the two years many lenders ask for.

How 6.99% fits with the 5.89% you may have seen. On 21 October we wrote about Canstar's data showing three lenders at 5.89% variable. Those are standard, full-documentation home loans. Alt-doc loans are a different product: the lender is taking on more uncertainty about your income, so pricing usually starts higher and the maximum LVR is usually lower — 70% in Firstmac's headline example, which means a 30% deposit or equity. If you can document your income the standard way, a full-doc loan will often be cheaper. If you can't yet, alt-doc may be the bridge until you can, and you can look at refinancing once your returns catch up. Compare the full cost, including the comparison rate.

If you're an investor or earn overtime

Rental income. Lenders rarely count every dollar of rent. They "shade" it to allow for vacancies, agent fees, rates, insurance and maintenance. From 22 October, Macquarie can include up to 95% of gross rental income in serviceability for eligible investors, with a minimum 5% vacancy shading and a minimum 15% deduction for total rental property expenses. That can move borrowing capacity noticeably, so if you've been told you've hit your limit, check how it was calculated.

Overtime. Macquarie has also expanded its essential-services occupation categories, allowing 100% of overtime income to be used for a broader range of occupations. Many lenders discount overtime, so for shift workers this can make a real difference. Eligibility depends on the lender's occupation list and your income history — check the detail rather than assuming you qualify.

Living costs. NAB is introducing an updated serviceability calculator from 23 October, updating its Household Expenditure Measure (HEM) values to align with APRA requirements. It becomes mandatory for new NAB home loan applications from that date. Broker Daily doesn't say whether the update increases or reduces borrowing power, and it may differ from household to household — so if you have a NAB pre-approval or an application in progress, ask whether the figures have been re-run.

If you need to buy before you sell

In a slower market, homes can take longer to sell. That makes the timing of selling one home and buying the next harder. Bridging finance covers the gap, and this week Firstmac extended its bridging loan to give borrowers up to 12 months to sell their existing property. It has also expanded postcode eligibility, reduced fees and introduced cash-out options.

Two features are worth understanding. First, interest can be capitalised, meaning no repayments during the bridging period — the interest is added to the loan instead. Second, eligible borrowers may be assessed on their end debt (what you will owe once the old home sells) rather than their peak debt (both loans at once), which can widen who qualifies.

The trade-off is real. For up to a year you are carrying the debt on two properties, and capitalised interest grows the balance every month. If the sale takes longer, or the price comes in lower than you expected, the end debt is bigger than you planned. Before you commit, get a realistic sale price — not the hopeful one — and a plan B if it doesn't sell in time.

Other changes worth knowing

• Bluestone can now consider casual employment of less than six months on its Specialist and Specialist+ products; offers prime loans up to $5 million below 70% LVR in metropolitan areas; accepts land up to 10 acres; and allows up to four dwellings on one title.
• Bank Australia has launched a Clean Energy Personal Loan at 7.49% variable with no establishment or ongoing fees, for upgrades such as solar, batteries, induction cooktops and electric hot water. It's a personal loan, separate from your home loan.

The catch

None of this means lending is getting easier across the board. These are individual lenders adjusting their own appetite. APRA's settings haven't changed: lenders still test repayments at a buffer of about 3 percentage points above the loan rate, and APRA's limit on high debt-to-income lending (no more than 20% of new lending at six times income or more) remains in place, as we covered in our 7 October Financial Stability Review piece.

Rates are still rising, too. GetABetterRate's tracker shows 36 of the 38 lenders it follows passed on the September cash rate rise of 0.25%, with a median effective date of 9 October. The cash rate is 4.60%. Specialist and alt-doc loans generally cost more, and every product mentioned has its own eligibility criteria.

What to do now

• Been told no recently? Find out why. If it was how your income was counted, another lender's policy might treat it differently.
• Self-employed: gather your latest BAS, tax returns and Notices of Assessment, and compare full-doc and alt-doc options on total cost, not just approval.
• Investors and overtime earners: ask how much rent or overtime each lender counts, and what it deducts.
• Selling to buy: work out your end debt using a conservative sale price, and how much capitalised interest could add over 6 and 12 months.
• Got a pre-approval? Lender calculators change. Ask whether yours still holds, especially if it was issued before the September rate rise.

Key dates

• Friday 23 October: NAB's updated serviceability calculator applies to new applications. Governor Michele Bullock speaks at a University of New England graduation ceremony (no policy discussion).
• Wednesday 28 October, 11:30am AEDT (11:00am Adelaide time): September-quarter Consumer Price Index.
• Tuesday 3 November, 2:30pm AEDT (2:00pm Adelaide time): Reserve Bank Monetary Policy Decision.

Related reading

• The lowest variable home loan rates just reshuffled (Canstar 5.89%) (21 October)
• Refinancing surge and cashbacks: how to tell if switching is worth it (20 October)
• Every capital city's house prices fell in the September quarter (Domain) (22 October)
• First home buyers are stepping back (13 October)
• What the RBA's October Financial Stability Review says (7 October)

Sources: Broker Daily, Julian Barnes, “Broker policy round-up: Lender changes at a glance 15–22 October”, 23 October 2026 (Firstmac alt-doc six months BAS / two years trading / from 6.99% owner-occupied P&I 70% LVR; Firstmac bridging up to 12 months, capitalised interest, end-debt assessment, postcode/fees/cash-out; Macquarie 95% gross rent, 5% vacancy, 15% expenses from 22 October, 100% overtime essential services; NAB serviceability calculator V66 HEM update from 23 October; Bluestone policy changes; Bank Australia Clean Energy Personal Loan 7.49%). Australian Broker, Mina Martin, “Firstmac alt-doc loans target premium self-employed borrowers”, 22 October 2026 (owner-occupiers and investors; about $23 billion in residential mortgages; four cash rate rises in 2026; cash rate 4.6%). GetABetterRate, “Which lenders have changed their home loan rates?”, updated 22 October 2026 (September 2026 round: 36 of 38 lenders, 0.25%, median effective 9 October). Reserve Bank of Australia calendar (Bullock 23 October; Monetary Policy Decision 3 November). APRA serviceability buffer and debt-to-income limit as covered in our 7 October article. Canstar 5.89% from our 21 October article.

← All news