We're here to help our self-employed customers with their home buying journey.
We know it can start to get complicated when preparing a self-employed client’s home loan application. We’re committed to helping you through their journey of buying a property or refinancing an existing loan, and to make the experience as simple as possible. To help set you and your client up as best as possible, we’ll need you to provide a number of documents to us:
1. Fast Track your way into this fast growing market.
Our Fast Track Assessment Process is where your self-employed clients are paid either a salary from their business or receive distribution from a partnership or trust, then they may be eligible for Fast Track.
Who’s eligible, and what’s required?
- Can provide the last 2 years personal Australian Taxation Office (ATO) Notice of Assessment (NOA) (where capital gains exist, deduct from taxable income)
- Don’t require Lenders Mortgage Insurance (Eligible Medico clients* can still get LMI waivers up to 95% LVR if using Fast Track)
- Don’t require additional income to meet serviceability (serviceability is met purely using the income derived from the 2 personal ATO NOA)
- Don’t have foreign income included in the ATO NOA
Follow this simplified process
- Confirm Fast Track eligibility
- Test serviceability using 2 years ATO Notice of Assessments*
- Tick 'Fast Track’ in ApplyOnline
- Lodge nothing else but the last two years personal ATO NOA
- The application then joins the PAYG assessment queue
*Where capital gains exist on NOA, deduct from taxable income. Ensure rental income and/or negative gearing haven’t been included separately, unless income commenced after NOA period. The application will revert to the regular self-employed method if it doesn’t meet Fast Track eligibility.
Key benefits for customers and brokers
- Typically faster approval compared to regular self-employed deals
- Less documents required
- Fast Track applications can be assessed by PAYG assessors
2. Our Self-Employed Fully Verified with 1-year financials
- If a customer's year-on-year profit growth is equal to or less than 60%, we may be able to use the latest year's income in the serviceability assessment.
- This test will be based on unadjusted profit (i.e. based on profit figures in financials / tax returns), so customers and brokers will be able to have certainty even before starting their assessment that we'll use latest year income.
- Allowed for LMI deals
3. Our Regular Self-Employed Assessment
Where Self-Employed clients are not eligible for Fast Track, please provide:
- Last 2 years of Business Income Tax Returns
- Last 2 years personal ATO Notice of Assessment
Where income is derived from a Partnership, Company or Trust, please also provide:
- Last 2 years of Income Tax Returns of the Partnership, Company or Trust
- Profit and Loss Statement showing figures for prior 2 full financial years
- Balance Sheet statements for prior 2 full financial years
When submitting proof of income, please ensure the requested document:
- Shows prior full financial year (finished last June 30) and SECOND prior full financial year (finished last June 30)
- Shows applicant's full name consistent with the application
- Must not show Tax File Numbers (TFN)
- Where application date is AFTER 15 May, it is mandatory to supply the previous 30 June ATO Notice of Assessment
4. Our Medico Self-Employed customers
Where your client is an eligible medical professional, they can borrow up to 95% LVR with no LMI. Please provide:
- Latest year of Business Income Tax Return
- Latest year personal ATO Notice of Assessment
The following medical occupations are eligible for our 95% LVR LMI waiver with no minimum income requirement:
- General Practitioners
- Hospital-employed Doctors (Intern, Resident, Registrar, Staff Specialist)
- Medical Specialists
The following medical occupations are eligible for our 90% LVR LMI waiver with Minimum income threshold of $90,000 per annum:
- Occupational Therapists
- Registered Nurses
- Speech Pathologists
- Veterinary Practitioners
If your client is self-employed, our Fast Track assessment process means their home loan application can be assessed without needing their business financials – giving them the same experience and turnaround time as employees on a payroll.
They can still qualify for Fast Track even if they: have PAYG income; have rental income; are applying with someone else and one or both of the applicants are self-employed.
To qualify for Fast Track, your client will need to:
- Provide their last 2 years of personal ATO Notice of Assessments.
- Be self-employed for more than 2 years.
- Not require LMI.
- Not rely on any other sources of income to afford their home loan repayments.
Fast Track document checklist:
- Their last 2 years of personal ATO Notice of Assessments.
Tip: Only provide the last 2 years of personal ATO Notice of Assessments; if you provide more the application will be processed under our regular self-employed assessment.
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Credit Criteria, fees and charges apply. Terms and conditions available on request. Based on St.George’s credit criteria, residential lending is not available for Non-Australian Resident borrowers.
This information's been prepared without taking your clients objectives, needs and overall financial situation into account. For this reason, your client consider the appropriateness of the information and, if necessary, seek appropriate professional advice. This includes any tax consequences arising from any promotions for investors and customers should seek independent advice on any taxation matters.
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