The big four bank now only requires proof of one year's worth of income realised by business owners, freelancers, or otherwise self-employed homebuyers and refinancers.
Previously, it demanded two years' of personal and business income statements – documentation that can be arduous or impossible to provide.
Comparatively, full- and part-time employees applying for a home loan through the lender only need to provide their two most recent pay slips.
Westpac's change comes as the bank reports a surge in self-employed home loan applications, up nearly a third in recent times.
"More than two million Australians work for themselves, and we've seen continued growth in self-employed customers coming to us for tailored support with getting a home loan," Westpac mortgages managing director James Hutton said.
"Self-employed people often have different needs and challenges in accessing home finance because their income can be more variable, or require additional verification to traditional pay slips."
Mr Hutton also noted that providing more than 12 months' of business income records can skew a person's borrowing capacity, particularly for those with improving business performance.
The streamlined policy complements Westpac's existing Fast Track and standard documentation pathways:
| Westpac self-employed assessment route | Details | Documentation needed |
|---|---|---|
| Fast Track assessment | Applications can be assessed without business financials; borrowers must have a deposit of at least 20% | Two years of personal ATO Notices of Assessment |
| 1-year assessment | Applications can be assessed with just one year of income | Most recent year’s business and personal tax returns; most recent year’s personal ATO Notice of Assessment; most recent year’s business liabilities |
| Standard 2-year assessment | Required for applicants with complex business structures or those who need to pay Lender’s Mortgage Insurance (LMI) | Two years of business and personal tax returns; most recent year's personal ATO Notice of Assessment; two years of business financial statements |
However, would-be self-employed borrowers generally still need to have worked for themselves for at least two years to be eligible for a Westpac home loan.
Self-employed individuals seeking a simplified home loan application process might also turn to ANZ.
The smallest of the big four banks offers a streamlined income verification process that allows business owners who pay themselves a regular wage to apply with just six months of income evidence.
More broadly, self-employed individuals might find themselves turning to low documentation (low doc) home loans.
These can generally be secured with less paperwork, but typically come at a cost – often in the form of higher interest rates, fees, or stricter lending limits.
Advertisement
Lender Home Loan Interest Rate Comparison Rate* Monthly Repayment Repayment type Rate Type Offset Redraw Ongoing Fees Upfront Fees Max LVR Lump Sum Repayment Extra Repayments Split Loan Option Tags Features Link Compare Promoted Product Disclosure
Promoted
Disclosure
Disclosure
Promoted
Disclosure
Image by Orderinchaos on Wikimedia Commons
Share