The RBA's latest rate decision has mortgage brokers across Australia asking the same question: which of my active files need a second look before I lodge? The answer depends on where each application sits in the pipeline and how close it was to the serviceability ceiling at assessment.
The good news is that a targeted review doesn't have to take hours. If you know what to look for, you can triage a pipeline of 20 files in under an hour — or hand that process to your loan processor so you stay client-facing.
Why Rate Changes Create Lodgement Risk
Most lenders assess serviceability at the actual rate plus a buffer — currently 3% above the loan rate. When the cash rate moves, lenders update their assessment rates on a rolling basis, sometimes within 24–48 hours of the RBA announcement. An application that cleared serviceability at last month's assessment rate may no longer clear at today's.
The risk is concentrated in three types of files:
- Files close to the serviceability ceiling — these were tight before the rate rise and are now at risk of failing lender assessment
- High LVR applications — where every dollar of borrowing capacity matters
- Files with long pre-approval timelines — if the assessment was done 3+ weeks ago, the lender's current rate inputs may have changed
The Triage Checklist
Run each active file through the following five checks. If a file fails any of them, it's worth recalculating serviceability before lodgement.
Pre-Lodgement Rate Check — 5 Questions
- Was the serviceability assessment completed more than two weeks ago?
- Was the borrower within 15% of the serviceability maximum at the time of assessment?
- Does the application involve a variable rate product with a low introductory period?
- Has the lender updated their assessment rate in the last 30 days? (Check their BDM portal or broker line.)
- Does the file involve a non-standard income type (self-employed, contractor, commission-heavy) that is already haircut heavily?
Any file that triggers two or more of these questions warrants a full serviceability recalculation before you lodge. The cost of a declined application — in time, lender relationships, and client confidence — significantly outweighs the cost of an extra hour of due diligence.
Which Lenders Are Most Sensitive?
Not all lenders update their assessment rates at the same speed. The major banks typically update within 48 hours of an RBA decision. Non-bank lenders and credit unions may take longer — some update on a fortnightly cycle.
If you lodged with a non-bank lender two weeks before a rate rise, there's a reasonable chance the assessment rate hasn't been updated yet — but it may have been updated by the time the credit team assesses your file.
The safest approach is to contact the lender's BDM directly and confirm the current assessment rate before lodgement. This takes five minutes and eliminates the guesswork.
How BBO Can Help
If you have a large pipeline and limited time to run a full triage, our loan processors can work through your active files and flag any that present serviceability risk based on current assessment rates. We can also run updated serviceability calculations and prepare an amended application if required.
Reach out to the team or book a call to discuss how we can support you through a rate-change period.