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The number of self-employed customers is on the rise, with Westpac reporting a 30 per cent surge between January 2024 and January 2025.
In response to the higher demand, Westpac has adjusted its policy by introducing a one-year income assessment for self-employed borrowers. The major is also reducing the documentation required to enter a loan.
“Self-employed people often have different needs and challenges in accessing home finance because their income can be more variable, or require additional verification to traditional payslips,” said Westpac’s managing director of mortgages, James Hutton.
Pepper Money has also adjusted its policy to cater to the self-employed segment by introducing AltDoc Xpress.
The proprietary solution reduces the need for borrower paperwork through a “streamlined digital process.”
Through the new offering, brokers, customers, and accountants can provide and verify documentation with a single platform, with one-time password verification at each stage to promote data security and compliance.
Pepper Money’s general manager, mortgages and commercial lending, Barry Saoud, said the latest solution is a “game-changer.”
“This is more than just a tech upgrade – it’s a gamechanger for the self-employed segment. By digitising a historically manual process, we’re giving brokers greater control, improving turnaround times, and enhancing the overall experience for all parties involved,” he said.
“It’s a clear example of how we’re delivering on our promise of ‘really helpful’ lending by making complex processes simpler, faster, and more secure.”
Brokers are able to access AltDoc Xpress through Pepper’s Broker Hub. Early reactions praised the elimination of back-and-forth documentation processes.
“One of the biggest pain points for self-employed clients has always been the back-and-forth with paperwork. This new workflow cuts that out completely. It’s seamless, secure, and saves us hours,” commented a broker user.
Alt-doc loans have seen a surge in recent months as work norms shift.
Freelancers, gig workers, contractors, and business owners make up around 5.1 million people in the Australian workforce, according to Bluestone Home Loans.
The lender recorded a 260 per cent increase in alt-doc loans over 2024 and a 39 times increase since 2019.
“The economy and work habits are evolving, especially post-COVID. More Australians are choosing self-employment or earning income from multiple sources, which doesn’t always align with traditional income verification like payslips or audited accounts – particularly in the early years of a business,” said Bluestone chief commercial officer Tony MacRae.
[Related: Surge in alt-doc loans as work norms shift]
