ANZ has introduced changes to its home loan policies aimed at making it easier for small business owners and sole traders in Australia to secure home loans. The move comes after feedback from customers indicated that irregular income patterns often create barriers during the application process.
The updated policies are part of a broader effort by ANZ to address the needs of small business customers across its products, policies, and processes. The bank says these changes reflect an understanding of the unique cash flow challenges faced by self-employed Australians and aim to reduce stress, complexity, and paperwork in applying for home loans.
Among the key updates, business overdrafts can now be amortised over ten years instead of seven, which increases borrowing capacity. For those with existing fixed rate asset finance agreements, leases or hire purchases, ANZ will use actual repayments in assessments rather than adding a 3% interest rate buffer. This is expected to make it easier for applicants to qualify for a home loan. Additionally, self-employed customers who receive income through director fees or company dividends will only need to provide one year of income documentation instead of two.
Paul Presland, ANZ Managing Director Small to Medium Enterprise, Australia Commercial, said: “We’ve listened to our customers and are proud to lead the way in inclusive lending. 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.”
“These updates are part of ANZ’s broader strategy to support Australian businesses to start, run and grow – both personally and professionally. No two small businesses are the same, and by tailoring our approach we’re not just simplifying the process, we're ensuring Australian small businesses continue to thrive.”
Brad Jackson, a pharmacist and small business owner from South Australia who recently refinanced his home loan with ANZ after being a customer for 25 years commented: “I expected refinancing my home loan and switching my personal banking to ANZ to be a slow and complicated process, but it was surprisingly seamless. The turnaround was incredibly fast, and I avoided the usual hassle of excessive paperwork. ANZ made the entire experience efficient and stress-free, which is a gamechanger for small business owners like me who are already swamped.”
The new policies have taken effect immediately as part of ANZ’s ongoing strategy focused on simplifying banking services for Australians.
Recently, ANZ received recognition as Canstar’s Small Business Bank of the Year for a fourth consecutive year—a record tenth time overall—demonstrating its continued commitment within this sector (https://www.canstar.com.au/small-business/anz-small-business-bank-of-the-year-2024/).