Unlocking opportunities when borrowers don’t fit the mould

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BROKERS ARE increasingly working with borrower circumstances that don’t neatly align with standard assessment models. While some traditional lenders are tightening lending guidelines, borrower income sources are also becoming more diverse. Together, these shifts are reshaping what a “typical” borrower looks like, and complexity is no longer the exception. Income may be spread across multiple sources, business cash flow may fluctuate due to reinvestment or equity may be strong while short‑term servicing appears constrained. While on paper these scenarios may look difficult to place, in reality they reflect how modern Australians operate. For brokers, this highlights the opportunity to build on the role they already play in helping borrowers present a complete picture of their situation. Liberty chief distribution officer David Smith says this is becoming a more common theme in broker conversations. “Brokers are seeing more borrowers who may not fit a standard template, but that doesn’t necessarily mean they’re higher risk.” By understanding the context behind the numbers and translating that into a well‑structured submission, brokers can help to ensure the true position is assessed accurately and unlock outcomes otherwise overlooked. A shifting borrower profile The idea of a borrower with a single, stable income source, long-term employment and straightforward expenses is becoming less common. More often, today’s borrower has layered financial circumstances, including self-employed income, multiple revenue streams or variable earnings. For example, a self-employed borrower may show fluctuating income across tax returns, despite maintaining consistent cash flow. An investor may hold significant equity while managing tighter day-to-day liquidity. A business owner may be reinvesting in growth, impacting short-term servicing while strengthening long-term performance. These scenarios reflect the reality of how many Australians are working, earning and building wealth. “Financial strength doesn’t always present in a straight line,” says Smith. “When brokers take the time to understand the detail behind the numbers, they can uncover opportunities that might otherwise be missed.”

As one of Australia’s leading non-bank lenders, Liberty offers innovative solutions to support customers with greater choice. For close to 30 years, this free-thinking approach to loan solutions has seen us help nearly one million customers across a wide range of home, car, personal and business loans, as well as SMSF lending and insurance. Liberty remains the only non-bank lender with an investment-grade credit rating offering custom and prime solutions to help more people get financial.

DAVID SMITH, LIBERTY

Moving beyond the checklist As borrower profiles evolve, the way these scenarios are approached is also changing. In many cases, the conversation is shifting from whether a borrower fits a model to how their position can be more accurately understood. In that sense, assessment is shifting as well. It’s less about fitting borrowers into predefined categories and more about interpreting how their financial position works in practice. An example Smith points to is an equity-rich investor with a solid asset base and clear long-term strategy. While standard models may limit their borrowing capacity, their overall position remains strong. Similarly, a small business owner with variable monthly income may demonstrate consistency and sustainability when viewed over a longer period. “Numbers on their own only tell part of the story,” says Smith. “When brokers bring that context to life, it can change how an application is assessed.” Handling complexity with confidence Smith says brokers working with more complex scenarios often take a proactive and structured approach

“Numbers on their own only tell part of the story. When brokers bring that context to life, it can change how an application is assessed”

With brokers navigating tighter lending settings and more complex borrower profiles, there’s greater emphasis on how a borrower’s situation is structured and assessed

Published 24 Aug 2026

Engaging early to shape outcomes Early engagement can make a meaningful difference. This can include reviewing existing structures and identifying ways to strengthen an application before submission. “Early dialogue opens the door to more strategic thinking, rather than reacting to immediate needs,” explains Smith. Building a complete financial narrative Strong applications bring together a clearer view of a borrower’s overall position. This includes outlining how income is generated and why it is sustainable, even if it comes from multiple sources. It also means highlighting equity, asset position and repayment history, while addressing any recent changes with clear explanation. “A well-developed narrative gives credit teams the confidence to assess a scenario on its merits,” says Smith. Working with lenders who consider the full picture Not all lenders approach credit assessment the same way. Some have greater flexibility to consider a broader set of factors, particularly for borrowers with non-traditional income or evolving financial positions. “At Liberty, our income assessment is designed to reflect a borrower’s true capacity,” Smith explains. “This gives brokers more ways to support clients.” Collaborating with BDMs and credit teams Discussing a scenario early allows brokers to confirm alignment, refine their approach and reduce rework. It also creates a shared understanding from the outset. “At Liberty, we work alongside brokers to structure solutions for scenarios that might not fit traditional lending,” explains Smith.

A growing opportunity Evolving borrower profiles mean complexity is becoming part of everyday broking. Brokers who interpret these scenarios, structure deals effectively and work with the right lending partners are well positioned to unlock stronger outcomes. This skillset strengthens long-term relationships. When borrowers feel understood and supported, they are more likely to return, particularly when their circumstances fall outside standard criteria. “Brokers play a critical role in bridging the gap between a borrower’s real-world position and how that position is assessed,” explains Smith. “That role is only becoming more important.” Seeing the full picture Smith reiterates this shift presents a clear and growing opportunity for brokers. “Understanding the detail behind a borrower’s situation has always been important. In today’s environment, that insight can make all the difference in finding a solution that fits.”

Working with lenders that take a flexible and considered approach can help brokers navigate these scenarios with greater confidence. For more information visit liberty.com.au/broker or call 13 11 33.

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“Brokers play a critical role in bridging the gap between a borrower’s real-world position and how that position is assessed”

DAVID SMITH, LIBERTY

Approved applicants only. Lending criteria apply. Liberty Financial Pty Ltd ACN 077 248 983 and Secure Funding Pty Ltd ABN 25 081 982 872 Australian Credit Licence 388133, together trading as Liberty Financial.