To cut down on paperwork, speed up approvals, and offer more realistic assessments of self-employed income, ANZ has introduced these key changes:

  • Small business owners can now pay off business overdrafts over 10 years instead of seven, which helps increase borrowing power.
  • ANZ will use the actual repayments on fixed-rate loans instead of adding an extra 3% interest when assessing loan applications.
  • Customers who are self-employed and earn solely through director fees or dividends are required to submit just one year of income documentation instead of two.

Paul Presland, ANZ’s Managing Director for Small to Medium Enterprises, said the changes demonstrate the bank’s dedication to acknowledging the strength and resilience of Australia’s small business sector.

“Small business owners, freelancers, entrepreneurs and sole traders deserve the same access to home ownership as any other worker,” he said. 

“These changes are about cutting red tape and recognising the value small businesses bring to our economy. We know they’re already juggling enough – banking shouldn’t be another pain point.”

ANZ said these updates are part of its broader strategy to build a more adaptive banking experience. The bank has signalled that more improvements across its products and processes are on the way.

According to the Australian Bureau of Statistics, 97.2% of all Australian businesses were small businesses (have fewer than 20 employees) as of June 2024, highlighting just how significant this segment is to the economy.

Many self-employed Australians face irregular income patterns and fluctuating cash flow, which can make it difficult to meet the strict criteria of traditional home loan assessments.

By adapting its approach, ANZ is aiming to better meet the needs of a growing segment often overlooked by major lenders.

This follows Westpac changing its lending rules in early July, principal of which is lowering the requirement from two years of business activity statements (BAS) to one year.