MPFG Capital | Non-Bank Lender Australia

Upgraders Dominate as Refinancing Retreats

New data from Australian Finance Group (AFG), one of Australia's largest mortgage aggregators, reveals a significant structural shift in the home loan market: upgrader demand is now the primary driver of new lending volumes, while the refinancing share has slipped to its lowest point on record.

This shift has important implications for borrowers — particularly those with complex income situations such as self-employed individuals and business owners.

What the AFG Data Shows

Refinancing — switching an existing loan to a better rate or product — has long been a major portion of mortgage broker activity. But AFG's latest flows data shows this share has retreated dramatically to a record low.

Instead, "upgraders" — borrowers selling their current home and buying a larger or higher-value property — are now driving loan volumes. Despite the RBA maintaining its cash rate at 4.10% (effective 18 March 2026, with the next decision on 5 May 2026), a meaningful cohort of Australians remain committed to moving up the property ladder.

Why Upgraders Are Active Despite High Rates

Several factors explain why upgrader activity is holding firm:

Accumulated equity: After years of property price growth, many homeowners hold significant equity, making the transition to a larger home financially viable even in a high-rate environment
Life stage decisions: Family growth, income improvements, or lifestyle changes drive upgrade decisions that don't wait for perfect rate conditions
Anticipating rate cuts: Many upgraders are moving now in anticipation of potential RBA rate reductions later in 2026

The Challenge for Upgraders With Complex Incomes

Upgrader borrowers face a common challenge: banks apply strict serviceability buffers when assessing new loans. For borrowers with variable incomes — self-employed individuals, business owners, commission earners, or contractors — standard bank assessment methods often understate true borrowing capacity.

This is where non-bank lenders like MPFG Capital offer a practical alternative. Under Alt Doc lending frameworks, applicants can verify income using:

BAS statements (last 2 quarters or 12 months)
Accountant's letters confirming business income
Business bank statements showing cash flow
A combination of alternative income verification documents

What MPFG Capital Offers Upgrader Borrowers

MPFG Capital specialises in helping upgrader borrowers who fall outside standard bank parameters — particularly within the Chinese-Australian community and among self-employed small business owners across Melbourne, Sydney, and Brisbane.

Key features of MPFG's upgrade lending:

Assessment based on Alt Doc criteria, not payslips alone
LVR up to 80% for residential upgrades
Available to applicants with ABN registered for at least 12 months
Flexible loan amounts from $100,000 to $7.5 million

The AFG data confirms that upgrade demand is robust — and for borrowers with complex incomes, a non-bank specialist who understands real-world income patterns can make the difference between approval and rejection.

Frequently Asked Questions

Can self-employed upgraders use BAS statements instead of tax returns?

Yes. MPFG Capital's Alt Doc loans accept BAS statements as primary income evidence. We typically require the last 4 BAS statements or 12 months of business bank statements, depending on your business structure.

What LVR is available for Alt Doc upgrade loans?

MPFG Capital offers up to 80% LVR for residential upgrade lending under Alt Doc criteria. Higher LVR options may be available depending on individual circumstances.

How long does the upgrade loan process take at MPFG?

As a non-bank lender, MPFG Capital can often move faster than major banks. Initial assessment can be completed within 24-48 hours of receiving a complete application package.

This article is general information only and does not constitute financial advice. Loan approval is subject to MPFG Capital's credit criteria and individual assessment.