Lending Scenarios
How the Lending System Is Applied in Practice
Australian lending decisions are assessed through a single underlying system.
That system does not change — but how it is weighted and applied does.
Different borrower scenarios activate different constraints, risks, and assessment priorities.
This is why borrowers with similar incomes, deposits, or properties can receive very different outcomes.
This section explains how the same lending system behaves across common real-world scenarios
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What a “Lending Scenario” Means
A lending scenario is not a product type and not a borrower label.
It is a context in which:
- certain assessment pillars dominate,
- specific risks are prioritised,
- and lender discretion is applied differently.
Each scenario below explains:
- which parts of the system become binding,
- where outcomes commonly diverge from expectations,
- and why decisions that appear inconsistent are, in fact, structural.
Lending Scenarios Covered
First Home Buyers
How entry rules, deposit structure, and government schemes shape outcomes
First home buyers are assessed under the same lending system as all borrowers, but with additional overlays created by government policy.
Deposit composition, eligibility rules, and sequencing decisions dominate outcomes at this stage.
→ View First Home Buyers scenario
Rentvesting & Buying Interstate
How intent classification and transaction risk alter assessment
Rentvesting reclassifies a purchase as an investment, triggering different income treatment, eligibility rules, and future constraints.
Interstate purchases introduce additional execution and timing risk that the system prices in.
→ View Rentvesting & Buying Interstate scenario
Short-Term Rental / Airbnb
How income volatility and property classification affect borrowing capacity
Short-term rental income is assessed conservatively, regardless of headline yield.
Certain property types may also be reclassified, reducing leverage and lender appetite.
→ View Short-Term Rental / Airbnb scenario
Property Investors
How serviceability, income shading, and sequencing become binding
For investors, borrowing capacity is rarely limited by deposit size alone.
Serviceability models, income treatment, and early portfolio decisions determine whether growth continues or stalls.
→ View Property Investors scenario
Australian Expats
How overseas income and lender access reshape outcomes
Australian expats are assessed under the same framework, but with modified income treatment and a restricted lender panel.
Currency risk, jurisdiction exposure, and timing dominate results.
→ View Australian Expats scenario
SMSF Property
How non-recourse lending fundamentally changes flexibility
SMSF property lending operates under a more restrictive framework.
Higher deposits, liquidity requirements, and trapped equity are structural features — not policy quirks. They also cannot usually be undertaken unless the customer has specific instruction from a licensed financial planner.
→ View SMSF Property scenario
Luxury & Specialist Property
How security risk overrides income strength
Luxury and specialist properties are defined by lender risk thresholds, not finishes or lifestyle.
Once triggered, lower LVRs, conservative valuations, and reduced appetite apply automatically.
→ View Luxury & Specialist Property scenario
How to Use These Pages
These scenario pages are designed to:
- explain why outcomes differ
- surface system constraints early
- provide context before any engagement occurs
They do not:
- recommend strategies
- assess individual situations
- compare lenders
- provide personal advice