How brokers can help SME owners secure home loans

When it comes to small business owners purchasing residential property or refinancing – it doesn’t have to be a complicated experience, says ANZ.

The good news for brokers is that ANZ has home loan policies tailored to business owners who are in the market for home loans and business owners who have both a business and home lending need. 

So, whether your customer is a sole trader, company, partnership or trust and they’re looking to buy, refinance or restructure, ANZ can help you find the right home loan solution for their situation.

Streamlined income verification

ANZ has made things simpler for business owners who receive a regular wage from a company to apply for a home loan. If your customer is a director or shareholder of the company and their wage has been in place for more than six months, they may be eligible for a streamlined income verification option.

Clear, consistent requirements

ANZ’s requirements to assess income of small business owners have been consistent for some time.  For most home loan applications we usually need one financial year’s worth of tax statements and for certain businesses, like those set up as a company, business financial statements are required.

Simplified dual business and home lending applications

So, when it comes to both business and home loans, is it easier to focus on one without the other? Doing both together has distinct advantages, says Ivan Mioc, general manager ANZ Commercial Broker. 

“If your client has both a business and home loan need, ANZ can assess both applications via a dual application offering,” Mioc says. “Dual applications have one dedicated assessment manager reviewing and assessing the business and home loan at the same time.”

“This helps with better understanding the overall transaction and delivers a quicker response to our brokers and their clients.

“We’ve also made it easier for our brokers’ clients to refinance. Our new rapid refinance process for dual applications could mean a faster time to decision. It’s available to clients wishing to refinance both their business lending up to $1m and their home loan, with a single decision point for assessment.”

Workshopping for complex dual applications

For clients who have an existing business banking relationship manager at ANZ (with commercial lending >$1m) and have more complex dual-lending requirements, ANZ recently introduced the ability for brokers to join a “workshop” call with the banker and the ANZ Business Verification team to work through the servicing assessment together.

“Having the ability to workshop a dual application at the start of the process and with involvement from the verification team is leading to a more streamlined process and ultimately a quicker deal outcome,” Mioc says.  “It allows us to run through the application upfront and ensure everyone understands the flow of business funds to support the home loan servicing.”

Simpler home loans to assist brokers and customers

Along with these initiatives that are tailored to the needs of business owners, ANZ has also made several changes to make its home loans easier to understand.

ANZ Retail Broker general manager Natalie Smith, says the bank has redesigned its home loan products.

“We now offer three Simpler Home Loans - Standard Variable, Fixed and Simplicity +. These three simple products aim to allow customers to see their options more clearly and enable brokers to help match customers’ needs with the right home loan,” Smith says.

All-round support for brokers and business owners

“We are absolutely open for business when it comes to home loans for business owners,” says Mioc. “Now is a great time for business owners to consider ANZ for their home loan.”

Mioc says ANZ has a range of supporting collateral to share with its brokers, which can help guide them through the bank’s processes.

“This includes a credit guideline brochure which explain what information is required to prepare for Rapid Refinance Dual Applications with ANZ – it’s a great resource.”

Steps brokers can take to help business owners who want a home loan:

1. Ensure you’re accredited with ANZ for both residential and business lending.
2. Your business clients can apply for an ANZ home loan as soon as their business has had an ABN or ACN for 18 months.
3. Hold a conversation with your customer about their business operations and property goals.
4. Check ANZ’s mortgage credit requirements to see the requirements for your customer’s circumstances – you might be surprised to see that ANZ requires less information than you think to verify a business owner’s income.
5. Check that your customer’s financial reporting is up to date and provide current, accountant-prepared information upfront.

When these steps are followed, Mioc says assessment teams are better placed to make quicker decisions for self-employed borrowers.  

How can a broker learn more about home loans for business owners? 

• A great place to start is to talk to your ANZ Business Development Manager (BDM). We’re here to help.
• ANZ’s experienced commercial bankers and BDMs are available to meet with you to workshop transactions and run deal scenario workshops where a customer has a requirement for both business and home lending.
• Attend an ANZ broker webinar, which may include sessions on dual applications. You can also reach out to your aggregator or ANZ BDM if there’s specific training you would like to see – ANZ can work with your aggregator to run tailored training sessions.
• You can find ANZ’s Simpler Home Loans and current offers though the ANZ Residential Broker website. From this page, accredited brokers can also connect to the ANZ Broker Portal for more information around ANZ’s policies and processes for business owners seeking a home loan.

Accreditations

For more information on accreditations speak to your ANZ Business Development Manager (BDM).

Note: This article was originally published on the Mortgage Professional Australia website.