Newcastle Permanent lending policy treats a loan increase differently from a replacement loan, so separate retained debt from additional funds before forecasting commission. The submission type also affects account numbers and the evidence needed for approval.
Start with the Newcastle Permanent commission schedule attached to your aggregator agreement and the lender’s own credit guides. Keep Greater Bank documents separate unless Newcastle Permanent expressly applies them to the transaction. The lender-policy directory helps you compare the requirements of other lenders without carrying their rules into this file.
Upfront Commission and Ongoing Trail
Upfront commission pays for eligible lending under the governing schedule, while trail depends on the ongoing balance and continuing entitlement. Record the schedule version against the original loan and any subsequent variation.
The Newcastle Permanent section of the 2024 Connective Commission Guide calculates ordinary-loan upfront from the following month’s seventh-calendar-day balance, less advance repayments and linked offset funds. It bases trail on average daily principal balance, with the specified offset adjustment. These are different calculation bases. Apply the schedule governing your agreement and settlement cohort when forecasting payment.
Keep the lender’s gross calculation separate from the aggregator’s deductions and your brokerage split. Record whether each amount includes GST. An approval limit alone does not establish the commission payable.
Internal Replacement and External Refinance
An internal replacement retains Newcastle Permanent debt, while an external refinance brings debt from another lender. Record the outgoing lender and the amount paid out so those components remain distinguishable.
Newcastle Permanent’s loan restructure and principal increase guide requires a new application when an increase changes the term, product or rate. This creates a new account number. A new number alone does not prove that all lending earns a fresh upfront payment or that the original commission history disappears.
For either transaction, retain the old account reference and original settlement record. Add the payout amount, retained redraw and new account reference to the file. For external refinancing, keep the outgoing lender’s statement and evidence of the debt being discharged.
Under the 2024 Connective guide’s revised variation and new-money provisions, the original upfront is clawed back. Commission is recalculated on the varied loan or new-money amount. Retained Newcastle Permanent debt therefore needs the variation treatment, while funds refinanced from another lender remain separately classified. Your agreement and settlement cohort determine which provisions apply.
The same guide pays trail on broker-introduced loans and on loans where the broker subsequently initiates a variation. If another broker initiates the variation, the original broker’s trail ceases. Preserve the introducing and variation broker details alongside the account history.
Clawback and Partial Repayment
A full exit and a partial repayment need separate commission entries because only the full exit necessarily closes the loan. Match the event to the recovery clause in the governing schedule.
The 2024 Connective guide’s Newcastle Permanent section describes recovery of 100% of upfront for termination within 365 days of original settlement. It describes 50% recovery from 366 to 548 days. Its trigger is discharge, termination or full payout outside the agreed term.
For a partial repayment, retain the before-and-after balance and any offset movement. Distinguish a lower ongoing trail balance from an upfront recovery. Apply a partial-repayment recovery only where the governing terms establish it. Record any debit separately from the reduction in monthly trail.
For a variation covered by the 2024 Connective guide’s revised provisions, record the original upfront recovery and recalculated commission as separate events. That variation treatment needs its own reconciliation alongside any full-exit recovery.
Additional Funds and Split Changes
Newcastle Permanent’s principal increase process separates the additional amount requested from the existing loan. Its guide excludes the current balance and redraw from that new-amount field.
The principal increase route requires an existing variable-rate loan with the same term, product and interest rate. A changed structure uses the new-application route described above. Where redraw is retained, carry it into the existing facility information as directed by the guide.
Consider a hypothetical $420,000 balance with a $30,000 increase. Record $420,000 as retained debt and $30,000 as additional funds. Where the 2024 Connective variation provisions apply, match the recalculated payment to the varied loan or new-money amount specified by those provisions. Keep the retained $420,000 and additional $30,000 distinguishable in that calculation.
If the loan becomes two splits, map each new account to its predecessor. Keep split balances separate in the payment record, then reconcile their total to the funded structure. Avoid counting the old balance and both replacement splits as separate active lending.
Income, Employment and Residence
Newcastle Permanent assesses income according to the employment and income category, so build the file around what each applicant actually earns. Its income documentation guide separates base salary from supplementary earnings.
For salaried employment, the guide accepts one payslip or qualifying transaction history for existing customers. Payslips need the required employer details and income breakdown. Overtime and allowances need supporting year-to-date history. Casual applicants need two consecutive payslips and the previous financial year’s tax return or PAYG summary.
Irregular bonuses and employment commission require evidence over two consecutive years. Contract employment needs the employment contract as well as payslips. Address probation and employment continuity in the broker notes instead of treating every payslip as evidence of permanent employment.
For identity, Newcastle Permanent’s home-loan application checklist includes a foreign passport with a visa grant notice. Record residence status separately from income. Visa documentation identifies the applicant’s status. It does not establish loan eligibility by itself. Put any residence exception into the credit request with the actual visa conditions and proposed borrowing structure.
Loan Purpose and Security Eligibility
Newcastle Permanent’s acceptable security table distinguishes ordinary residential property from high-density, rural and restricted-market security. The postcode and property classification affect the available loan-to-value ratio (LVR).
The table generally uses the lower of valuation or purchase price, with a favourable-purchase exception. Credit can impose a lower LVR or require lenders mortgage insurance (LMI). Record the property features that select the row before applying its limit.
Where an owner-occupied property becomes an investment, update the declared use and support the proposed rental income. Newcastle Permanent’s supporting documents guide identifies rental estimates from a new full valuation or an agent appraisal for an untenanted conversion.
For cash out, identify the amount and intended use in the submission. Attach evidence that explains that use, such as renovation quotes. Request a credit decision on the stated purpose. A sufficient valuation does not establish acceptance of the proposed use of funds.
Submission Conditions and Escalation
Build the Newcastle Permanent submission around the settled debt and the requested change. The supporting documents guide requires a serviceability calculator for new or increased debt, plus broker notes and a completed checklist.
Keep these items together for assessment:
- Applicant identification and the signed Personal Information Record and declaration.
- Income evidence for each source used in servicing.
- Existing loan statements and the refinance property’s rates notice.
- The proposed balance and split structure, including retained redraw.
- Purpose evidence and the valuation or rental evidence relevant to the change.
- An exit strategy where retirement occurs before the proposed loan term ends.
For an exception, state the precise policy condition that the application does not meet. Show the requested treatment and attach the evidence supporting it. Ask credit to decide that exception for the named applicants and security. Keep commission questions separate so a credit approval cannot be mistaken for a remuneration decision.
Use the Newcastle Permanent broker access and escalation guide for the relevant support route.
Keeping the Approval and Payment Aligned
Reconcile the funded Newcastle Permanent accounts to the approval before comparing commission with the forecast. Match each split to the eligible lending amount and the schedule used for that payment.
If a replacement changes the account number, preserve the link to the old loan and its original settlement history. Compare any recovery against the original upfront, then reconcile the replacement payment separately. A net total can hide an incorrect debit and an incorrect credit that happen to offset each other.
Track My Trail’s Clawback Risk shows loans still inside their clawback period, with days remaining and the upfront at stake under the applicable rules. Use that exposure alongside the file’s payment calculation when planning a loan change. Close the reconciliation when the statement’s account references and payment events explain the funded structure.
