11/08/2026
Solvi Lending Insights | August 2026
The Reserve Bank left the cash rate unchanged this month, a decision that was widely expected by markets. While interest rates haven't moved over the past couple of months, the lending landscape has certainly continued to evolve throughout the year.
One of the biggest changes we've seen this year is the continued tightening of lending policies for company and trust borrowers.
Company & Trust Property Holding Entities -
Many banks, particularly the major banks, have significantly tightened their policies for new lending involving these entity structures, with some now only considering these applications for existing clients. As a result, non-bank lenders are increasingly becoming an important option for borrowers using these structures.
We've also seen lenders place greater emphasis on verifying entity liabilities. Where a simple self-declaration confirming an entity was meeting its own commitments may once have been sufficient, many lenders now require supporting financial documentation, include those liabilities in servicing calculations, or request an accountant's letter confirming the entity is meeting its obligations.
With a number of accountants no longer able to provide these letters following guidance issued by their professional bodies in 2023, satisfying these requirements has become increasingly complex for borrowers.
Trading Companies -
There has also been a noticeable shift in how lenders assess trading companies. While some lenders have become more conservative in their assessment of company liabilities, a growing number of lenders now offer alternative assessment methods for self-employed borrowers, including allowing directors to qualify using their PAYG income or two most recent Notice of Assessments, where eligible. These policies can provide greater flexibility and a much simpler assessment process for self-employed clients.
One issue that continues to impact everyone involved in the lending process is mortgage fraud. Industry reports suggest Australian banks are investigating more than $3 billion worth of suspected fraudulent home loan applications, highlighting just how sophisticated document fraud has become across the industry.
As a result, lenders are undertaking more detailed verification of income, liabilities and supporting documents. While this can make the application process feel more overwhelming, these measures help protect the integrity of the lending system.
We haven't highlighted these changes to make lending feel daunting - Our industry is constantly evolving, and adapting to these changes is simply part of our role.
The real challenge today isn't finding a lender, it's finding the right lender. Policies now vary significantly between institutions, and understanding those differences can save borrowers considerable time, unnecessary applications which can impact credit scores, and frustration. Staying across these changes means we can guide our clients towards lenders whose policies best suit their individual circumstances, making the process as straightforward as possible!
Sources: The Australian Financial Review – Mortgage fraud worries balloon to $3b as banks remark their homework (10 April 2026)
