Westpac To Offer A 10-Minute Mortgage
The bank is predicting a surge in refinancing.
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A technology revamp is set to allow the bank the ability to full approve digital mortgages in as little as 10 minutes. The move is part of Westpac’s long-term shift towards digital banking and a readiness for a potential boom in refinancing.
Today, the bank becomes the latest lender to announce a push into digital mortgage lending — a tightly contested area for banks and fintechs as they duke it out for quick approval times.
Westpac plans to launch a new process in the final quarter of the year which will allow w some customers to refinance through an automated system. At first, the offer will only be open to individual borrowers who are refinancing an owner-occupied loan, have 20% equity in the property and earn a PAYG income.
The technology uses data analytics to perform identity checks and credit assessments, the bank says it will be able to unconditionally approve some simple loan applications in 10 minutes and plans to roll out the offer to a wider range of customers in 2023.
Further, Westpac CEO Peter King told The Sydney Morning Herald that customers are seeing the need to respond to the rising interest rates.
“Interest rates are no longer falling, they’re going up. Customers are considering the cost of their banking, including their mortgage, and we see that refinance will be an important part of the market over the next couple of years,” King said.
Of the other big four banks in Australia, the Commonwealth Bank launched a digital home loan in May, ANZ announced in March its aims to launch a digital product next year while NAB has adopted a new system that sees its bankers and brokers expedite loans at new speeds.
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For self-employed Australians, navigating the mortgage market can be complex—especially when income documentation doesn’t fit the standard mould. In this guide, Stephen Andrianakos, Director of Red Door Financial Group, outlines eight flexible loan structures designed to support business owners, freelancers, and entrepreneurs.
1. Full-Doc Loan
A full-doc loan is the most straightforward and competitive option for self-employed borrowers with up-to-date tax returns and financials. Lenders assess two years of tax returns, assessment notices, and business financials. This type of loan offers high borrowing capacity, access to features like offset accounts and redraw facilities, and fixed and variable rate choices.
2. Low-Doc Loan
Low-doc loans are designed for borrowers who can’t provide the usual financial documentation, such as those in start-up mode or recently expanded businesses. Instead of full tax returns, lenders accept alternatives like profit and loss statements or accountant’s declarations. While rates may be slightly higher, these loans make finance accessible where banks might otherwise decline.
3. Standard Variable Rate Loan
A standard variable loan moves with the market and offers flexibility in repayments, extra contributions, and redraw options. It’s ideal for borrowers who want to manage repayments actively or pay off their loans faster when income permits. With access to over 40 lenders, brokers can help match borrowers with a variable product suited to their financial strategy.
4. Fixed Rate Loan
A fixed-rate loan offers repayment certainty over a set term—typically one to five years. It’s popular with borrowers seeking predictability, especially in volatile rate environments. While fixed loans offer fewer flexible features, their stability can be valuable for budgeting and cash flow planning.
5. Split Loan
A split loan combines fixed and variable portions, giving borrowers the security of a fixed rate on part of the loan and the flexibility of a variable rate on the other. This structure benefits self-employed clients with irregular income, allowing them to lock in part of their repayment while keeping some funds accessible.
6. Construction Loan
Construction loans release funds in stages aligned with the building process, from the initial slab to completion. These loans suit clients building a new home or undertaking major renovations. Most lenders offer interest-only repayments during construction, switching to principal-and-interest after the build. Managing timelines and approvals is key to a smooth experience.
7. Interest-Only Loan
Interest-only loans allow borrowers to pay just the interest portion of the loan for a set period, preserving cash flow. This structure is often used during growth phases in business or for investment purposes. After the interest-only period, the loan typically converts to principal-and-interest repayments.
8. Offset Home Loan
An offset home loan links your savings account to your mortgage, reducing the interest charged on the loan. For self-employed borrowers with fluctuating income, it’s a valuable tool for managing cash flow while still reducing interest and accelerating loan repayment. The funds remain accessible, offering both flexibility and efficiency.
Red Door Financial Group is a Melbourne-based brokerage firm that offers personalised financial solutions for residential, commercial, and business lending.
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