Westpac's Changes to Their Credit Policy

Self-employed Credit Policy changes

Effective Sunday 16 August 2020, adjustments have been made to Westpac's self-employed section of Credit Policy.

These changes include:

  • Financial statements confirming profitability. Where any business entities related to the applicant aren't used in serviceability you can now accept just the latest years' trust/company financial statements or tax returns to confirm the entity is trading profitably.
  • Depreciation add-backs. We are now allowing a standard 100% depreciation add-back for any business-critical, income-producing assets.
  • Company profit. Undistributed company profit is now acceptable to be used where the borrower is a director and a shareholder with a holding of 50% or more and there is a serviceability shortfall.
  • Collection and review of three months of Business transaction statements removed.

Also, effective Tuesday 18 August 2020, amendments are being made to Westpac's ApplyOnline (AOL) that mandate a list of supporting documents that need to uploading to the ApplyOnline platform at the time of submitting an application.

  • A set of mandatory documents will need to be uploaded on ApplyOnline at the time of submitting the application.
  • List of documents that are mandatory Home Loan Application form, Guarantor Application form, Income Documents (payslips for PAYG application and Tax Returns for Self Employed/Medico application), Contract of Sale.
  • For all non-mandatory supporting documents required from Tuesday 18 August 2020, you can either use supporting documents tab on AOL to upload the documents or email documents as you do currently.

Exclusion: When any of the security is AIP (Pre-Approval is ticked) or application is Rework supporting documents are not mandated in these scenarios. Also, the Contract of sale is not required when the application is refinancing.

To read full details on Westpac's policy changes, please click here.