Bank of Sydney lending policy requires you to separate the client’s credit eligibility from the commission treatment of the proposed facility. Income origin, residence and security decide the credit enquiry. The applicable residential remuneration schedule decides what earns upfront, how trail is calculated and what repayment can trigger recovery.
Use the lender-policy directory to compare another lender’s rules. Keep each lender’s payment terms attached to its own loan record.
Upfront Amounts and Ongoing Trail
Bank of Sydney commission calculations depend on drawn funds and offset balances under the applicable schedule. YBR Aggregation’s published 2024 residential schedule lists 0.715% upfront and 0.165% annual trail, including GST.
That schedule measures upfront on drawn funds less offset on the fifth day of the following month. It provides for further payments within a 12-month drawdown cap, using monthly average loan balances less average offset balances. Trail uses the month’s average loan debit balance less the average linked 100% offset balance. Trail ceases beyond 90 days in arrears.
Separate the lender calculation from your aggregator’s remittance. Reconcile your broker split and contractual deductions against the gross commission line. A payment difference can arise from the balance used or the payment period before any rate discrepancy exists.
Payouts, Refinances and Clawbacks
An outgoing refinance repays the Bank of Sydney loan, so match the repayment to its original commission record. The YBR schedule lists full upfront recovery for repayment within 12 months and 50% recovery after that, within 18 months.
A replacement Bank of Sydney facility needs separate classification. Record whether the old credit contract is repaid or continues through a variation. An internal replacement does not establish a clawback exemption. Obtain the written treatment for the old account and replacement before entering a recovery estimate.
Track My Trail’s Clawback Risk shows loans inside their clawback period, days remaining and upfront exposure under the aggregator’s or lender’s rules. Use that exposure when preparing the file’s commission reconciliation.
Top-Ups and Split-Loan Changes
The YBR schedule pays upfront on principal increases representing new money, with a $100,000 loan minimum and a $14,300 GST-inclusive cap per applicant per loan. Apply its credit-contract drawdown rules to the variation.
For a split change, retain the old and new account references alongside the total debt before and after the change. Moving an existing balance between fixed and variable splits does not, by itself, demonstrate new lending. Distinguish additional borrowing from a transfer of existing debt when requesting the bank’s commission classification.
For example, a hypothetical client moves part of an existing loan into a fixed split and requests additional renovation funds. Show the transferred debt and additional funds separately. Keep the original settlement history so a new account number does not erase the evidence needed to reconcile prior payments.
Salary and Other Income Evidence
Bank of Sydney’s home-loan application checklist distinguishes salary evidence from casual, contract and investment income. Its salary pathway lists two recent computerised payslips with at least three months of year-to-date income, or the specified alternative evidence combinations.
Employer letters must identify employment length and status, base salary and permanent or regular overtime. Casual and contract applicants have separate employment-history evidence pathways. Investment interest or dividends require two years of tax returns and notices of assessment under that checklist.
For locally earned salary, identify the fixed base separately from overtime, bonuses and commission. Record which supporting document establishes each amount. Count variable pay only after its acceptance conditions and assessment amount are settled for the application.
Foreign earnings need a separate enquiry covering the employment country and payment currency. Supply the original amount and evidence of employment, then record the bank’s accepted conversion and assessment treatment. A foreign-income field on the loan variation form collects information. It does not establish eligibility or an income acceptance percentage.
In a hypothetical file combining local salary and overseas rental income, keep two income lines. Show whether the proposed debt works on accepted local salary alone. If the application needs foreign rent, identify that dependency in the credit enquiry before lodging.
Residency and Borrower Structure
Residence and citizenship must be recorded separately from the currency in which the applicant earns income. Bank of Sydney’s residential niches sheet lists expat lending up to 70% loan-to-value ratio (LVR). It also lists company and trust borrowers for owner-occupied and investment properties.
Those categories require a file-specific eligibility decision. An Australian citizen living overseas and a temporary visa holder living in Australia present different residency questions. Foreign-income acceptance cannot establish eligibility for every non-resident applicant.
Record each applicant’s country of residence, citizenship and visa or permanent-residence status. For an entity borrower, identify the trustee or company, the beneficial ownership and the proposed guarantors. Keep the trust deed and borrowing structure with the enquiry so the credit response addresses the actual parties.
Purpose, Security and Lending Limits
Bank of Sydney’s security limits depend on the property’s characteristics and location. Its niches sheet lists metro high-density units above 50 square metres of living space at 80% LVR. For residential acreage above six acres, it lists 70% LVR in metro areas and 50% in regional areas.
It also describes residential lending for up to four properties on one site for purchase, refinance and non-developer construction. These niches remain subject to lending criteria and approval.
Calculate LVR from the proposed debt and the valuation accepted for the application. Record the postcode, land size and living area, plus the number of dwellings and titles. Explain the proposed use of funds and whether the property produces income.
A general product maximum does not approve an unusual security. For example, a large residential block with several dwellings needs the bank’s classification of its use and configuration before a standard product limit answers the question.
Credit Clarifications for the File
A useful credit enquiry gives Bank of Sydney enough detail to answer the exact eligibility question. Use the scenario resources on the bank’s broker resources page. For contact and access details, use the Bank of Sydney broker guide.
Send one enquiry that connects the applicant to the proposed debt:
- State each borrower’s residence and legal status, including the entity structure where applicable.
- Split income by source and currency, with the evidence available and the amount the application depends on.
- Show existing debt, proposed limits and the additional funds required. Identify any existing Bank of Sydney account being repaid or varied.
- Describe the security and proposed valuation basis, with the requested LVR.
- Ask for the applicable credit condition and any exception needed. Raise commission treatment separately when a replacement or top-up changes account history.
Request a response against the stated facts. If the applicant changes employment or the valuation changes the LVR, send the changed facts with the original enquiry reference.
Evidence to Keep After Approval
Keep the approval conditions and exception correspondence with the documents that show what actually settled. Retain the accepted income calculation and valuation, then record any difference between the approved structure and final accounts.
For payment reconciliation, retain the residential remuneration schedule that applies to the facility, the original funding record and each variation. Keep the loan and offset balances used in the calculation beside the commission statement. Match any recovery to the commission originally paid and the repayment event.
When a split change creates new account numbers, preserve their connection to the original loan. A complete account history lets you raise a specific query about an unpaid increase, changed trail or disputed clawback with the supporting figures attached.
