ANZ levels the playing field for small business owners with home loan shake-up

ANZ is shaking up home loans to make things fairer for small business owners.

If you run a café, a plumbing van, or an online store, your income can rise and fall.

That used to make mortgages tough.

Now, ANZ looks at real cash flow, longer income histories, and multiple income sources—not just one perfect payslip.

What’s changing for you:

• Simpler paperwork: bank statements and BAS can support your case, not only accountant letters.
• Flexible checks: income averaged over 12–24 months, not just last month’s numbers.
• Competitive rates and offset accounts to reduce interest while keeping cash handy.
• Loan-to-value ratios up to 80% for many, with higher options if you add lender’s mortgage insurance.
• Faster decisions using digital bank data, so you’re not waiting weeks.

Real-life examples:

• Jess, a florist with busy springs and quiet winters, shows 18 months of deposits to qualify.
• Mo, a rideshare driver with two side gigs, combines incomes to meet serviceability.
• Priya and Dan, who keep cash in their business, use an offset account to cut interest while staying flexible.

Tip: keep BAS, bank statements, and ATO lodgements up to date. Some strong applicants may qualify with one year of trading.

Understanding ANZ’s New Approach

ANZ’s innovative home loan strategy is designed to cater to the unique financial circumstances of small business owners. This initiative is a response to the challenges faced by entrepreneurs who often juggle multiple income streams and seasonal fluctuations. By adopting a more holistic view of income, ANZ is not only broadening access to home loans but also fostering financial inclusivity.

Key Features of the New Home Loan Structure

Flexible Income Assessment

ANZ’s approach allows for a comprehensive evaluation of an applicant’s financial health. By considering income over a 12 to 24-month period, ANZ accommodates the natural ebb and flow of small business revenue. This flexibility is crucial for industries with seasonal peaks and troughs, such as retail and hospitality.

Simplified Documentation

The requirement for simpler paperwork means that small business owners can use bank statements and Business Activity Statements (BAS) to substantiate their income. This reduces reliance on formal accountant letters, which can be costly and time-consuming to obtain.

Competitive Rates and Offset Accounts

ANZ offers competitive interest rates and offset accounts, which are particularly beneficial for small business owners. Offset accounts allow borrowers to reduce their interest payments while maintaining liquidity, a critical factor for businesses needing quick access to cash.

Practical Examples and Case Scenarios

Jess the Florist

Jess runs a small flower shop that thrives during wedding season but slows down in winter. By presenting 18 months of bank deposits, Jess demonstrates her business’s viability, securing a loan that accommodates her seasonal income.

Mo the Rideshare Driver

Mo supplements his rideshare income with two side gigs. ANZ’s policy of combining multiple income sources allows Mo to meet the serviceability requirements for a home loan, illustrating the bank’s commitment to flexible income assessment.

Priya and Dan’s Offset Strategy

Priya and Dan, who manage a successful online store, use an offset account to maximise their savings. By keeping excess business funds in the offset account, they reduce their loan interest while ensuring they have cash available for inventory purchases.

Actionable Advice for Small Business Owners

• Maintain Accurate Records: Regularly update your BAS and bank statements to provide a clear picture of your financial health.
• Diversify Income Streams: Consider multiple income sources to strengthen your loan application.
• Utilise Digital Tools: Leverage digital banking to streamline your financial management and loan application process.

FAQ

How does ANZ’s new policy benefit small business owners?

ANZ’s policy offers flexible income assessments, simplified documentation, and competitive rates, making it easier for small business owners to qualify for home loans despite fluctuating incomes.

What documents are required for the new home loan application?

Applicants can use bank statements and BAS as primary documentation, reducing the need for formal accountant letters.

Can I combine multiple income sources for my loan application?

Yes, ANZ allows applicants to combine different income streams, which is beneficial for those with side gigs or seasonal businesses.

Sources

• Australian Taxation Office (ATO)
• Australian Securities and Investments Commission (ASIC)
• Reserve Bank of Australia (RBA)
• Australian Prudential Regulation Authority (APRA)

For more information on managing your finances as a small business owner, visit our Small Business Finance Guide.

Conclusion

ANZ’s home loan shake-up is a significant step towards financial inclusivity for small business owners in Australia. By recognising the diverse and dynamic nature of entrepreneurial income, ANZ is setting a precedent for other financial institutions to follow. Small business owners are encouraged to take advantage of this opportunity to secure their financial future.

Compliance Notes 1

Review product terms, fees, and exclusions against your own needs before switching providers.

Compliance Notes 2

Review product terms, fees, and exclusions against your own needs before switching providers.

Compliance Notes 3

Review product terms, fees, and exclusions against your own needs before switching providers.

Compliance Notes 4

Review product terms, fees, and exclusions against your own needs before switching providers.

Worked Example

For example: compare two products with the same monthly cost but different fees. A slightly higher headline rate can still be cheaper once annual fees and penalties are included.

FAQ

How often should I review this type of product?

At least once per year and again when your circumstances change.

What should I compare first?

Start with eligibility, total costs, key exclusions, and cancellation terms.

Where can I verify guidance?

Check official Australian regulators and government websites before making decisions.

Sources

• Australian Taxation Office (ATO)
• ASIC Moneysmart
• APRA

Related Reading

• Read related guidance on Cockatoo
• Read related guidance on Cockatoo
• Read related guidance on Cockatoo

Further Authority Links

• Australian Taxation Office (ATO)
• ASIC Moneysmart

Navigating the Loan Application Process

Understanding the loan application process can significantly enhance your chances of success. Here are some steps to guide small business owners through ANZ’s new home loan application:

Prepare Your Financial Documents

To streamline your application, gather all necessary financial documents in advance. This includes:

• Bank Statements: Ensure these are up-to-date and accurately reflect your income and expenses.
• Business Activity Statements (BAS): Regularly lodge your BAS with the ATO to provide a comprehensive view of your business’s financial health.
• Income Tax Returns: While not always required, having recent tax returns can support your application.

Leverage Professional Advice

Consider consulting with a financial advisor or mortgage broker who understands the nuances of small business finances. They can provide tailored advice and help you navigate complex loan requirements.

Utilise ANZ’s Digital Tools

ANZ offers digital tools that can simplify the application process. Use these platforms to submit documents and track your application status in real-time, reducing the need for in-person visits.

Maximising Loan Benefits

Once approved, it’s crucial to manage your loan effectively to maximise its benefits. Here are some strategies:

Use Offset Accounts Wisely

Offset accounts can significantly reduce the interest you pay on your loan. Keep surplus business funds in your offset account to lower your loan balance and interest charges.

Regularly Review Your Loan Terms

Interest rates and loan terms can change. Regularly reviewing your loan agreement ensures you are always getting the best deal. Consider refinancing if you find a more competitive offer elsewhere.

Stay Informed About Regulatory Changes

Keep abreast of changes in regulations by bodies such as ASIC and APRA. These changes can impact your loan terms and conditions, and staying informed can help you make proactive adjustments.

FAQ

What is an offset account, and how does it work?

An offset account is a transaction account linked to your home loan. The balance in this account offsets the amount owed on your loan, reducing the interest you pay.

How can I improve my chances of loan approval?

Maintain accurate financial records, diversify your income streams, and ensure all tax obligations are up-to-date. Additionally, leveraging professional advice can enhance your application.

Can I refinance my loan if I find a better rate?

Yes, refinancing is an option if you find a more competitive rate. However, be mindful of any exit fees or penalties associated with your current loan.

Sources

• Australian Competition and Consumer Commission (ACCC)
• Australian Securities and Investments Commission (ASIC)
• Reserve Bank of Australia (RBA)
• Australian Prudential Regulation Authority (APRA)

For further insights on managing your home loan, explore our Home Loan Management Guide.