Auswide Bank lending policy requires you to separate the proposed refinance’s credit assessment from the commission event it creates. Money arriving from another lender, extra borrowing and replacement of an existing Auswide balance need different treatment in your file.
Start with the settled amount and the broker agreement that covers it. Then build the credit submission around the borrower’s income, loan purpose and proposed security. The lender policy directory helps you compare other lenders without applying their rules to Auswide.
Settlement Commission and Trail Basis
The Auswide section of the 2024 Connective Commission Guide bases upfront on settled drawdown. Undrawn limits add nothing. Broker-introduced further advances earn upfront on the net increase, excluding redraw. Other further advances earn none.
That guide calculates trail from unpaid daily balances and includes offset funds in its definition. It suspends a whole month’s trail for arrears exceeding 30 days or other non-compliance. Payments resume the following month after compliance returns.
Keep the offer amount, funds actually advanced and commission calculation in separate fields. An approved limit can exceed the amount the borrower uses. A settlement confirmation proves the advance occurred, while the commission statement shows the amount the lender recognised for payment.
For a payment enquiry, attach both documents and identify the loan account. Apply the agreement for that introduction channel and settlement, including its balance measurement and exclusions. A headline rate alone cannot establish a payable amount.
Refinance and Clawback Events
An incoming refinance repays another lender. An internal replacement repays Auswide debt. Record retained debt separately from new funds before calculating expected upfront.
The 2024 Connective guide requires full upfront repayment when an Auswide loan is fully repaid or reaches zero within 12 months of settlement. Auswide can deduct this from later commission.
For each payout, compare the original settlement event with the actual repayment event. Keep the payout statement and account closure evidence together. For an internal replacement, record what happens to the old account as well as the new account. A changed account number does not establish a second commission entitlement.
Track My Trail’s Clawback Risk lists loans within their clawback period, with days remaining and upfront at stake under the applicable aggregator or lender rules. That gives you a loan-by-loan view when planning reviews.
Top-Ups and Split Accounts
A further advance and a new account are separate questions. The 2024 guide also has a trail exclusion for loans receiving further advances, with discretion for branch-introduced advances. Preserve the advance’s introduction channel when reconciling payment.
Consider this hypothetical reconciliation. An existing balance of $450,000 becomes two splits of $300,000 and $200,000. Total debt increases by $50,000. The $500,000 across the new splits is the post-change balance, not $500,000 of additional borrowing.
Map the old account to both resulting accounts. Record the retained $450,000 once and the additional $50,000 separately. Keep the additional funds’ purpose beside the advance request. Only classify that increase as commissionable when its introduction and payment conditions are met.
After settlement, reconcile total balances before comparing payments. If the old account remains in a report alongside replacement accounts, establish whether it is a closing entry before adding the balances together.
Income Evidence Accepted by Credit
Build the income evidence around the earnings you need Auswide to assess. Its Credit Guide requires the bank to consider the applicant’s financial position and ability to repay without substantial hardship. That applies to a credit-limit increase as well as a new contract.
For a salaried borrower, reconcile the application income with payslips and salary credits. Separate base salary from overtime, allowances and bonuses. Show the history behind variable earnings instead of annualising an unusually strong pay period.
For business income, prepare personal and business tax records alongside financial statements. Explain ownership, drawings and any adjustment you ask credit to accept. An accountant’s explanation can describe an adjustment, but the supporting records must show what produced it.
Treat these as file-preparation steps. Record the income Auswide accepts in its assessment and resolve any difference from your servicing calculation before relying on approval. Avoid building a refinance that only works if every variable payment is counted in full.
Borrower Status and Loan Purpose
Identify who borrows, where they reside and what each part of the advance funds before selecting the assessment route. Auswide’s public Credit Guide identifies the bank as a division of MyState Bank Limited. That corporate identity does not establish that every application channel has identical eligibility rules.
For an individual borrower, record residence and employment location. For a company or trust structure, identify the proposed borrower and guarantors, with the documents establishing who can sign. Keep entity eligibility separate from whether an individual can service the debt.
Split owner-occupied and investment purposes according to the actual use of funds. For a refinance with extra borrowing, document both the debt being replaced and the new expenditure. A rate change or repayment change leaves a different evidence trail from a change in purpose.
Use the Auswide broker portal guide for application access and contact options once the proposed channel is established.
Security Restrictions and Valuation
Assess the actual property before treating a product’s advertised loan-to-value ratio (LVR) as available. Prepare the address, title details and dwelling description for the valuation request. Identify unusual features early, such as a small apartment, acreage or mixed residential and commercial use.
Calculate LVR using the security value accepted for the application. In a hypothetical $500,000 refinance against an accepted value of $650,000, LVR is about 76.9%. A $600,000 accepted value raises it to about 83.3%, before any financed costs.
The calculation shows the effect of valuation. It does not establish Auswide’s permitted LVR for that property. Resolve location and title restrictions through the security assessment, and retain any conditions attached to the accepted value.
Submission Conditions and Exceptions
Make the refinance submission explain what Auswide must repay, what the borrower receives and which issue needs a credit decision. Use a checklist that lets an assessor trace the money and the proposed repayment capacity.
- Attach the existing loan statements and payout evidence, including any costs added to the refinance.
- Allocate the proposed advance between debt replacement and additional borrowing, with evidence of the additional funds’ purpose.
- Reconcile income documents to the servicing figures and explain adjustments.
- Include borrower and security details, with valuation conditions and supporting entity documents where relevant.
- Record the requested exception, the evidence supporting it and the decision still needed from credit.
For example, a refinance relying on variable income has an unresolved issue if accepted earnings fall below the servicing amount. Present the earnings history and the resulting borrowing requirement together. A discussion with a business development manager helps frame the request. The file still needs the credit decision and its conditions before you treat that exception as approved.
Keep the commission treatment alongside the final account structure. The completed file must explain both why the borrower can proceed and which balances support the expected payment.
