P&N Bank lending policy separates the borrower’s ability to repay the revised loan from the commission payable on the transaction. For a top-up, separate retained debt from additional funds before calculating broker pay. Police & Nurses Limited issues both P&N Bank and BCU Bank credit products, so a brand change also needs its own commission classification.
Upfront and Trail Calculation
Calculate P&N Bank remuneration from the commission schedule attached to your aggregator arrangement and the transaction category recorded for the application. The approved loan limit alone does not establish the amount eligible for upfront.
Record the eligible advance separately from the balance that remains with the bank. Apply the agreed upfront percentage to that eligible amount, then account for the aggregator’s share and the schedule’s GST treatment. A replacement account number does not, by itself, establish a fresh commission entitlement on existing debt.
For trail, use the schedule’s eligible ongoing balance and payment period. Reconcile any offset adjustment, arrears exclusion or balance change only where the agreement applies it. Keep the lender’s gross payment separate from the amount the aggregator passes to your brokerage.
Use these fields together when checking a payment:
- The brand, product and commission schedule governing the submitted application.
- The retained balance and the additional amount actually advanced.
- Any balance exclusions and the period used for trail.
- The aggregator deduction and GST basis shown on the statement.
The P&N broker resources guide explains the systems and assistance routes used to retrieve the file’s supporting documents.
Clawback and Refinance Classification
Classify the event by the creditor and movement of funds before applying a clawback clause. An internal replacement keeps the debt with the same lender. An external refinance repays it using funds from another lender. A partial repayment reduces debt while leaving an account open.
Those events can have different consequences under the commission agreement. Match the event to its clause, including any exemption, recovery percentage and settlement-age rule. Use the original settlement record when testing the original upfront payment’s exposure. Keep a separately advanced top-up identifiable if its payment has its own recovery terms.
A discharge, substantial repayment or transfer can also change the balance supporting future trail. Reconcile the closing statement against the first statement after the change. An account that disappears from a report needs a matched payout or replacement record before you treat it as a completed external refinance.
Track My Trail’s Clawback Risk lists loans inside their clawback periods, with days remaining and upfront exposure under the applicable aggregator or lender rules. Use the loan’s confirmed transaction treatment when resolving a recovery amount.
Additional Funds and Splits
A top-up file must distinguish debt carried forward from money newly advanced, even when the bank consolidates both amounts into one facility. That distinction lets you reconcile the commission calculation without confusing it with the full debt assessed for repayment capacity.
Consider a hypothetical borrower with $420,000 outstanding who receives another $80,000. The resulting debt is $500,000. If the applicable schedule pays upfront only on additional funds, the calculation starts with $80,000. Applying that percentage to $500,000 would include the retained $420,000 a second time.
Keep the identifiers and money movements together in the file:
- Original account number, settlement date and balance before the increase.
- New application reference and every resulting loan split number.
- Payout figure for any replaced split, including fees or accrued interest.
- Settlement disbursements showing which amount repays debt and which amount reaches the borrower or another payee.
- The commission statement entry matched to the eligible advance.
A split used to repay existing lending remains distinguishable from a split funding renovations. Changing the number of splits does not change where the funds went. Record any redraw separately so it is not mistaken for a newly approved increase.
BCU Bank Loans and Broker Pay
BCU Bank is part of P&N Group, and Police & Nurses Limited issues credit products under both brands. Common ownership does not establish that a P&N commission schedule or credit approval applies to a BCU file. Use the BCU application’s policy documents and its contractual commission arrangement.
A transfer between BCU Bank and P&N Bank keeps the same legal issuer while changing the brand. Record that same-issuer relationship separately from a refinance to an unrelated lender. For commission, apply the agreement’s treatment of transfers between the brands to both the old upfront payment and ongoing trail. A new branded account is not evidence of an external-refinance commission entitlement.
BCU’s broker page identifies NextGen ApplyOnline and Simpology Loanapp for lodgement. Its own broker resources supply the BCU forms. The BCU broker hub guide covers access and support routes. BCU lists broker support from 8:30am to 4:30pm AEST, Monday to Friday.
BCU publishes a specific income position for applications below 80% loan-to-value ratio (LVR). It states that it accepts 100% of child support and Family Tax A and B payments, plus parenting payments up to age 18. The same summary permits one year of self-employed financials. Its broker checklist adds a separate restriction: child support is secondary income and cannot exceed 50% of total servicing income.
Accepting the full child-support payment therefore differs from allowing child support to supply the borrower’s entire assessed income. Apply both conditions. BCU’s checklist also places an age-plus-term exit strategy in its Mortgage Loan Suitability Assessment, while P&N places it in ApplyOnline’s Compliance tab.
Income and Borrower Evidence
The P&N broker checklist specifies a recent payslip showing at least three months of year-to-date income for base salary. With less history, it lists consecutive payslips or a payslip supported by the specified prior-year tax evidence.
Overtime, allowances and bonus or commission income have separate evidence requirements. Match the evidence to the income used in servicing. Retain rental evidence where applicable, plus identity and residential address documents.
The checklist requires transaction statements for each loan party showing salary credits and 30 days of history, dated within 45 days. It also requires the servicing calculator and submission sheet in Excel. Remove tax file numbers from supporting documents.
P&N’s identification checklist distinguishes an unchanged existing-member top-up from an application changing the parties to the contract. Record every added borrower before selecting the identification branch.
Purpose and Security Acceptance
Match the additional funds to their stated use and the security offered for the revised debt. P&N’s owner-occupied Offset Variable Home Loan determination includes top-ups for worthwhile owner-occupied purposes. Its security must be predominantly residential property.
That product’s published maximum LVR is 95%, subject to the bank’s conditions and lenders mortgage insurance (LMI) requirements. The Investor Offset Home Loan determination instead lists a maximum of 90%. These are product limits, not automatic approval limits for every property or top-up.
Calculate the revised debt against the valuation the bank accepts for the actual security. In the hypothetical $500,000 case, an accepted value of $800,000 produces a 62.5% LVR before any further financed costs. The borrower must still meet servicing and purpose requirements.
Explain how any additional funds will be used and retain the documents supporting that purpose. If the proposal also releases a property, show the debt remaining after the release. For a substitution, identify both the outgoing and incoming security. A residential product description does not decide whether a particular property, cash-out purpose or security arrangement is acceptable.
Credit Conditions and Exception Records
Keep the written credit decision beside the final facility details so approval conditions can be traced to the settled transaction. The top-up pack needs current financial evidence and a funds breakdown, with the accepted valuation and proposed splits.
For a partial release, P&N’s Home Loan Variation Guide requires a sale contract and settlement-agent details. It also requires a breakdown of which loans receive the sale proceeds and how much each receives. A substitution needs the incoming and outgoing sale contracts, plus a certificate of currency. BCU publishes the same process in its own variation guide.
Put a specific exception question to credit when the proposed funds use or security falls outside the documented route. Name the purpose, revised debt and accepted security value. Attach the evidence for the departure and retain the written answer with its conditions. An approval for one file does not establish a general lending rule.
After settlement, match the approved increase to the disbursements and resulting account numbers. Then reconcile upfront, retained trail and any recovery against the applicable commission agreement. Use the lender policy guides when comparing another bank’s treatment of the same transaction.
