Home loan process about to get easier for some borrowers
ANZ has rolled out changes to its home loan policies aimed at making it easier for small business owners and sole traders to buy a home, following feedback about the difficulties of securing finance with irregular income.
According to a news release, the updates aim to cut red tape and reduce the paperwork traditionally associated with mortgage applications for self-employed borrowers. They form part of a broader strategy to make ANZ the bank of choice for Australian business owners across both their professional and personal needs.
Key changes to ANZ’s Business Owner Home Owner policy include extending business overdraft amortisation from seven to 10 years, which increases borrowing capacity; assessing repayments on fixed rate asset finance, leases or hire purchases at the actual repayment amount rather than adding a 3% buffer; and requiring only one year of income documentation for director fees or company dividends instead of two.
Paul Presland, ANZ managing director small to medium enterprise, Australia commercial, said that the changes recognise the resilience of the small business sector and the need for banks to adapt to the realities of business cash flow.
“We’ve listened to our customers and are proud to lead the way in inclusive lending,” Presland said. “Small business owners, freelancers, entrepreneurs, and sole traders deserve the same access to home ownership as any other worker. These changes are about cutting red tape and recognising the value small businesses bring to our economy. We know they are already juggling enough – banking shouldn’t be another pain point.”
He said the policy shift is part of ANZ’s broader approach to help Australian businesses “start, run and grow” while tailoring services to meet diverse needs.
