Australia’s Big Four banks align on mortgage reforms to support over two million self-employed citizens. ANZ joins Westpac, NAB and CBA in reducing documentation hurdles and boosting loan accessibility.
As self-employment continues to grow in Australia’s labour market, traditional financial systems are adapting. Recent changes introduced by ANZ signal a significant shift in how banks assess mortgage applications from self-employed individuals.
These moves are part of a broader trend among the Big Four banks to simplify and streamline home loan processes. The aim is to support sole traders, freelancers and small business owners who have long faced barriers due to irregular income and burdensome documentation requirements.
ANZ Revises Lending Criteria in Response to Customer Feedback
ANZ has confirmed it will now accept just one year of income documentation for mortgage applications from eligible self-employed customers—reducing the requirement from the previous two years. This follows similar policy adjustments from Commonwealth Bank, NAB, and Westpac, placing ANZ in line with its peers and reinforcing a sector-wide recognition of changing employment patterns.
According to Paul Presland, ANZ’s managing director of small to medium enterprise, the changes are designed to “cut red tape” and acknowledge the contribution of small business owners to the economy. “We know they are already juggling enough – banking shouldn’t be another pain point,” he said in a statement.
Beyond the income documentation changes, ANZ will also alter how it assesses other liabilities. When reviewing fixed rate asset finance, leases or hire purchase arrangements, the bank will now consider actual repayments rather than applying a standard 3% buffer. In addition, business overdrafts will now be amortised over 10 years instead of seven, improving borrowing capacity for applicants.
These updates follow persistent calls from customers for greater flexibility. Many self-employed borrowers struggle to meet traditional lending standards despite maintaining reliable income streams. According to research cited by Yahoo Finance, 40% of self-employed Australians believe they are at a disadvantage when applying for a home loan.
Broader Banking Trend Signals Structural Change in Mortgage Assessments
The recent move by ANZ mirrors a growing industry shift among major banks towards more inclusive lending frameworks for non-traditional workers. Commonwealth Bank was the first to introduce a one-year documentation policy in October 2024, followed by NAB and Westpac in early and mid-2025, respectively. All four banks now offer similar eligibility terms, albeit with conditions such as an 80% loan-to-value ratio and minimum trading periods for businesses.
Mortgage brokers have noted these policy shifts as a welcome change. According to Marina Michael, a broker specialising in self-employed clients, lending criteria had historically been rigid, often requiring extensive tax returns and assessments. “Traditionally, especially before Covid, every lender was looking at a minimum of two years of financials,” she told Yahoo Finance.
Alternative options like low documentation loans remain available, though they typically carry higher interest rates—often 1% to 1.5% above standard products. The recent adjustments aim to reduce reliance on such costly alternatives by offering more competitive, standardised lending paths for self-employed applicants.
