Victorian Mortgage Group lending policy combines facility-specific credit assessment with a published no-clawback arrangement for broker commission. Choose the product and income evidence route first, then match the repayment plan and broker payment terms to that facility.
Victorian Mortgage Group (VMG) lends across residential and business purposes secured by residential property. A residential mortgage can have a long term, so a proposed refinance exit must fit the actual approval.
Facility Terms and Broker Remuneration
VMG’s broker information describes an upfront commission that the broker keeps when a customer repays early. Its commission announcement also discusses trail income. Build the income estimate from the remuneration schedule attached to your accreditation and distribution arrangement.
Record the upfront calculation base and payment trigger. For ongoing trail, record the applicable facility, balance basis and payment frequency. Keep the lender’s gross payment separate from deductions under your aggregator or brokerage agreement.
Select the facility before applying those terms. Prime is a residential option for clean-credit borrowers. Flexi Business+ covers business purposes against residential security, including working capital and business debt restructuring.
A separately agreed broker fee is another payment. Show who pays it and the service it covers in the broker’s engagement documents. Keep it separate from lender commission and borrower loan charges.
Clawback and Early Repayment
VMG states that it has removed commission clawbacks across its product suite when customers refinance or discharge early. Its broker page specifically says brokers retain upfront commission. Apply that published early-repayment position when comparing lenders, without importing another lender’s clawback timetable.
Borrower payout costs belong to the loan contract and payout statement. A no-clawback commission arrangement does not establish a zero-cost discharge for the borrower. Separate the outstanding debt and accrued interest from any contractual discharge or other payout charge.
For example, in a hypothetical early refinance, record the retained upfront commission in the brokerage account. Put the borrower’s lender payout in the refinance funding calculation. A charge on that payout statement is not evidence that VMG has recovered the broker’s commission.
Refinance, Top-Ups and Splits
VMG’s niche guide lists refinancing and the ability to split loans. Prime also permits equity release. Treat a refinance to a different lender, an internal replacement and a request for additional borrowing as different transactions.
For an external refinance, reconcile the outgoing payout against the new advance. For an internal proposal, put the existing account and requested change into one credit submission. Record whether the approved outcome retains the account, replaces it or adds a separate advance.
Redraw is access to eligible extra repayments already made, as explained in VMG’s borrower FAQs. A top-up increases borrowing. Keep these separate when deciding how much new money the client receives.
Allocate each approved split its purpose and repayment terms. Match commission entitlement to the documented transaction and eligible amount. Dividing a balance into two accounts does not itself establish a second upfront payment.
Income and Repayment Evidence
VMG’s application checklist sets different evidence routes for employed and self-employed applicants. For salary and wage income, it calls for two consecutive current payslips with three months of transactional bank statements.
For self-employed full-doc applications, the checklist seeks tax and business financial information, with business and personal transaction statements. Alt-doc applicants provide a signed income declaration with an approved accountant’s letter, six months of business bank statements or six months of business activity statements.
The checklist also requires independent evidence of income flows. An income declaration and the supporting evidence must describe the same business and repayment capacity. VMG’s broker FAQs explain that borrowing capacity depends on income, existing commitments and the security property.
Prepare a repayment explanation for income changes during the proposed term. Separate recurring earnings from a one-off receipt so the assessor can see which funds meet ongoing repayments.
Residency and Borrower Structure
The VMG loan application asks whether each applicant is a permanent Australian resident. The niche guide separately lists expatriate lending for Australian citizens working overseas. An Australian citizen overseas and a temporary visa holder are different application scenarios.
State each applicant’s status and where the income is earned. Where that status needs an eligibility decision, make it an explicit credit question with the identity evidence attached.
Flexi Business+ lists individual, company and trust structures. Match the proposed borrower to the legal owner of the security and identify guarantors separately. Include the company details or trust documents needed to establish who borrows and who can sign. Entity lending does not automatically mean every loan purpose fits the business facility.
Purpose, Term and Repayment Exit
Prime has a published maximum term of 30 years. Its interest-only option runs for one to five years before reverting to principal and interest. Assess the repayment increase at that change as part of the proposed structure.
Describe why the client borrows and how the debt will be repaid. For an ordinary principal-and-interest loan, show repayment capacity over the term. Where retirement changes that capacity, the application asks how repayments will continue.
A sale or later refinance is a proposal until the file supports it. For a sale exit, deduct existing secured debt and selling costs from the supported sale proceeds. For a refinance exit, identify the income or credit improvement that makes the proposed replacement borrowing workable.
A hypothetical borrower expecting to refinance after clearing a default needs evidence of how the default will be cleared. Simply naming another lender as the intended exit does not demonstrate future repayment capacity.
Security and Valuation Conditions
Prime finances owner-occupied or investment residential property, while Flexi Business+ also requires residential security. Match the property’s actual use to the selected product before relying on an indication.
VMG’s application requests the security address and postcode, title details, value or purchase price and tenancy information. Reconcile these with the proposed mortgage and valuation instructions. Identify any discrepancy between the applicant, registered owner and proposed security provider.
The niche guide identifies property categories with separate considerations, including inner-city apartments and larger landholdings. Its summary is not a property approval. Send the actual title and property details for a credit decision when the security falls outside the straightforward residential case.
Calculate the loan-to-value ratio (LVR) from the accepted security value and proposed lending. Keep the property owner’s estimate separate from the value adopted in the approval.
Submission and Exception Decision
Use VMG’s broker resources to assemble the signed application, identity documents and selected income evidence. Add the documents for the transaction, such as purchase contracts or statements for debts being refinanced.
The checklist says a loan cannot be assessed until the necessary documents are collected, although VMG considers preliminary scenarios. A preliminary indication therefore needs the full evidence pack before it becomes an assessed application.
Put each unresolved issue beside the decision you need. For an unusual property, request acceptance of that security. For income evidence that differs from the chosen route, explain the difference and request the applicable assessment decision. Record the resulting conditions against the final approval.
Use the Victorian Mortgage Group broker portal guide for submission channels and assistance. The lender policy directory helps you compare another lender’s requirements when the proposed structure needs a different fit.
Reconciling Approval With Broker Pay
Reconcile the settled VMG facility with the approved borrower, security and repayment structure before booking the commission. Use the settled eligible amount and the payment terms for that transaction, including any approved splits or additional funds.
Keep the approval, settlement confirmation and commission statement together. Trace each payment to its facility reference and separate lender commission from the broker’s own fee. Where trail applies, retain the balance and entitlement terms used to calculate the expected payment.
If a payment differs from the expected amount, identify whether the difference comes from the settled advance, distribution deductions or payment timing. Raise the discrepancy with those documents and the calculation attached. This gives the commission team a specific amount and transaction to reconcile.
