IMB lending policy treats a loan increase as an assessment of the borrower’s current finances and available equity. For a broker, the first payment question is whether the proposed transaction qualifies under the residential introducer arrangement. A larger loan limit or a replacement account does not, by itself, establish an upfront entitlement.
Separate the credit decision from the commission calculation. An increase can meet the borrower’s needs while its remuneration depends on the existing facility and your distribution agreement. Use the lender policy directory to compare another lender’s treatment of the same scenario.
Upfront Eligibility and Trail Calculation
Establish the eligible facility and transaction before calculating IMB upfront commission. Identify the original lender, the existing account and the additional funds requested. Match those details to the residential payment terms applying to your introducer relationship.
IMB’s owner-occupied target market determination requires a distributing mortgage broker to belong to an aggregator group accredited by IMB. Product eligibility and an accredited distribution route are separate from an individual commission entitlement.
Keep the lender payment separate from your brokerage’s receipt. Your aggregator or sub-aggregator agreement determines the share and deductions that reach you. Reconcile the lender amount and your net payment as separate figures.
For trail, use the balance definition in the residential schedule. Record whether the calculation uses daily balances or a month-end balance, how offset funds affect it and when the payment falls due. A facility limit is not a substitute for the balance on which ongoing commission accrues.
YBR Aggregation’s published commission schedule labels its IMB entry commercial. Keep that entry separate from a residential increase, even where both loans have residential property as security.
Recovery After Payout or Reduction
Assess a proposed IMB payout against the recovery conditions attached to the original commission. Record the original settlement, the proposed payout and the elapsed time between them. For a partial reduction, record the amount repaid and the balance left outstanding.
A full discharge closes the facility. A principal reduction leaves a smaller debt. These events need separate treatment when you read a recovery clause, particularly if an increase has its own payment and commencement point. Apply the residential agreement’s event definitions and elapsed-period tiers to each commission payment.
Keep borrower cashback recovery separate from broker clawback. A promotion’s repayment condition describes the customer’s benefit and does not establish what IMB can recover from an introducer.
Track My Trail’s Clawback Risk lists loans within their clawback periods, with days remaining and estimated upfront exposure under the relevant rules. Use the loan’s agreement and any lender adjustment to reconcile the amount ultimately charged.
Refinance and Additional Borrowing
An external refinance brings debt from another lender to IMB. An internal refinance replaces or changes debt already held by IMB. Show those amounts separately when presenting the proposed loan, because the total replacement balance can include existing IMB debt.
IMB’s Budget Home Loan information distinguishes new applications from refinancing existing IMB loans for its advertised discount. That pricing distinction is not a commission formula.
For a top-up, isolate the additional borrowing in your remuneration calculation and obtain the transaction’s payment classification. IMB’s top-up guidance sets a $10,000 minimum. It also says increasing a fixed-rate loan requires breaking the fixed term, which can incur break costs.
Consider a hypothetical $400,000 existing IMB loan with a proposed $50,000 increase. The resulting debt is $450,000, while the additional borrowing is $50,000. Neither figure alone establishes the commissionable amount. Record which amount the applicable payment clause accepts.
A split-only change divides existing debt between accounts or rate types without adding funds. IMB supports fixed and variable splits, but that product feature does not create a separate right to upfront commission. Show any actual increase separately from the balance being reorganised.
Employment and Income Proof
IMB’s lender meeting checklist lists two payslips or an employer letter stating salary, or hourly pay and average weekly hours. It also lists three months of bank statements and two years of financials for self-employed applicants.
For salary income, reconcile the employment evidence with credits to the account. Where earnings include overtime, bonuses or commissions, separate the regular wage from the variable component. Present the history supporting the variable amount and identify the amount used in servicing.
For business income, explain the applicant’s ownership and the income drawn from the business. Keep personal earnings separate from business turnover. Submit the financials with an explanation of material changes instead of treating one strong month as an annual income figure.
Residence and Borrower Entities
Identify every proposed borrower and property owner before selecting the IMB product route. Record citizenship or residency status, the country where each applicant lives and the source and currency of income. If visa conditions affect the scenario, include the visa evidence in the assessment request.
For a company or trustee borrower, name the legal entity and its capacity. Separate an individual who earns income from a company from a company applying as borrower. Supply the ownership structure and identify any proposed guarantors.
An IMB business account or commercial lending product does not establish acceptance of that entity under a residential home loan. Obtain a residential credit decision for the named borrower structure before relying on that route.
Security, Purpose and Lending Boundary
Match the use of the increased funds to the product purpose before applying an IMB lending limit. The owner-occupied target market determination covers buying, improving or constructing an owner-occupied home. It also covers equity access where the purpose is not predominantly business or investment.
A home used as security does not turn business funding into an owner-occupied loan purpose. State what the funds will pay for and how the borrower will use the property.
IMB advertises lending up to 95% loan-to-value ratio (LVR) on its Budget Home Loan. Its qualification says the maximum depends on state, occupancy, loan amount and security type. Apply those conditions to the actual property instead of treating the advertised maximum as approval for every security.
For an increase, calculate the proposed total secured debt against the value IMB accepts. Include the property type and address, occupancy and any construction or renovation work. IMB’s top-up guidance says a valuation can be required and a fee can apply.
Documents and Credit Exceptions
Build the increase submission around the existing debt and the intended use of the additional funds. Keep the following items together so the assessor can follow the proposed change.
- Existing facility details, current balance and requested increase, with the proposed total debt.
- A funds breakdown with supporting quotes, contracts or payout figures for the stated purpose.
- Income evidence appropriate to each applicant, with current expenses and liabilities.
- Identification, residency evidence and the proposed borrower and ownership structure.
- Security details, the proposed LVR and any valuation or construction documents required for the property.
- The residential remuneration clause and a separate record of any commission clarification.
For an exception, request a written decision that names the applicant, product and departure from policy. Ask IMB to state the accepted income amount, borrower structure and security limit relevant to that departure. Include any extra documents or settlement conditions in the response.
For a payment exception, request a separate written answer stating whether IMB classifies the change as an increase, replacement facility or split-only variation. The answer needs to identify the eligible amount, applicable payment basis and effect on existing trail or recovery periods. Keep that answer with the file before including the payment in expected revenue. Use the IMB broker access and support guide for the separate application-support workflow.
