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ISCOVER
Craig Green, managing partner of Green Mortgage Lawyers, unpacks the post-election lending landscape and what lenders and brokers need to know about new lending rules.
The re-elected government has announced a sweeping housing reform agenda – including shared equity models, expanded low-deposit lending, build-to-rent tax incentives, and a national push for affordable and social housing.
While each initiative aims to boost accessibility and supply, they also carry layered implications for how lenders structure deals, assess risk, and navigate legal compliance.
From a legal standpoint, we’re not just seeing more loans – we’re seeing new classes of deals that reflect new lending products.
These policies are designed to improve housing access and affordability, but in practice, they bring more complex ownership structures, tighter compliance requirements, and an increased legal burden for lenders.
It’s no longer business as usual – standard legal precedents and documentation won’t cut it, while risk controls need to be more dynamic to reflect the changing nature of these deals.
But what are the legal implications for lenders as new housing policies reshape deal structures that both lenders and brokers need to know?
Key implications for lenders
GML’s analysis highlights a series of legal and operational challenges lenders should prepare for:
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Shared equity structures under the Help to Buy scheme, requiring co-ownership agreements and exit clauses.
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Low-deposit lending through First Home Guarantee expansion, increasing risk exposure without lenders mortgage insurance (LMI) coverage.
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Multi-party transactions in build-to-rent and social housing deals, with layered contracts and government compliance benchmarks.
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Pressure on turnaround times due to increased construction pipeline and first-home buyer incentives.
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Ensuring broker networks are fully informed and aligned with current lender products, policy changes, and approval time frames to minimise disruption and maximise conversion.
These aren’t traditional loans anymore. They’re layered, time-sensitive, and far more exposed to legal risk if the structure isn’t right from the outset.
Smart automation key to managing risk
There is also a growing role of smart legal-tech integrations in reducing delays and errors.
Having the ability to modify legal precedents in real time – while applying the right compliance logic to each deal – gives our lender partners a serious edge.
Automation, when done well, isn’t just efficient. It protects everyone involved.
Where brokers fit in
While the legal burden sits firmly with lenders and legal teams, brokers play a key role in navigating these changes from a client advisory perspective.
Brokers don’t handle the legal documentation, but they absolutely shape the front end of the borrower journey. They’re the matchmakers – connecting borrowers to the right lenders.
With policy changes now influencing deal types, approval time frames, and lender appetite, brokers need to stay sharp. The landscape is shifting, and their ability to guide clients towards the right structure from day one is more important than ever.
As housing policy changes take effect, brokers can play a vital role in helping clients ask the right questions and avoid unnecessary delays. So, I’d urge brokers to stay across a few key areas when advising borrowers:
Broker awareness checklist (post-election) – navigating policy shifts with clients
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Is the borrower eligible for any new schemes or incentives?
– e.g. Help to Buy, First Home Guarantee, shared equity programs.
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Does the borrower understand the ownership structure of their loan product?
– Especially relevant for shared equity or co-ownership schemes.
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What type of property is being purchased?
– Certain incentives or restrictions may apply based on location, value, or intended use.
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Is the chosen lender participating in relevant schemes?
– Not all lenders offer the same programs or structure deals the same way.
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Have you accounted for changes in lender appetite or approval time frames?
– Policy shifts may influence how quickly deals are assessed and underwritten.
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Is foreign residency or ownership a factor?
– Brokers should flag this early due to the foreign buyer restrictions now in place.
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Are there complex deal types involved, like Build-to-Rent or development loans?
– These often require more legal structuring and may not be suitable for all borrowers.
To help industry professionals stay across these shifts, we have released a free, one-page 2025 Election Outcome Cheat Sheet – highlighting the key policy changes and their implications for lenders.
Craig Green is the managing partner of Green Mortgage Lawyers (which demerged from Gadens in 2024) and specialises in commercial and retail banking transactions.
He has lectured in mortgage lending law at both the Securities Institute of Australia and TAFE and is a Fellow of the Mortgage and Finance Association of Australia (MFAA).
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