ING’s updated approach to self-employed home lending

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ING’s multiyear policy review has delivered three distinct self-employed assessment pathways, easing documentation requirements while reflecting the real-world financial circumstances of small business owners and contractors

OVER THE past decade, the self-employed lending landscape has continued to evolve as the nature of work itself has changed. More Australians are running their own businesses, earning income in different ways and operating within increasingly complex structures, reinforcing the need for lending approaches that reflect real-world financial circumstances. Today, the self-employed market is larger and more significant than ever. Government statistics show that independent contractors accounted for 7.6% of all employed workers in Australia in the year to August 2025, up from 7.5% in the previous 12-month period. Over the same time, the number of self-employed businesses with no additional employees increased by 4.3%, highlighting the growing importance of policies that can support this segment effectively.

ING entered the Australian market in 1999 with an innovative online savings account that redefined digital banking. Today, ING supports over 2.5 million active customers with a comprehensive range of banking, lending, superannuation and insurance solutions. Since launching home loans in 2000, ING has continuously evolved its offering based on broker and customer insights, introducing the Mortgage Simplifier in 2003 and the flagship Orange Advantage Offset loan in 2009. Over 95% of ING’s home loans are introduced through mortgage brokers. This enduring partnership is central to our business model and growth strategy. Brokers remain critical in shaping our product development and ensuring we deliver competitive, customer-focused solutions.

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“By taking the time to understand what brokers and their self-employed customers need, we’re proud to deliver a policy that puts ING forward as a strong alternative for self-employed Australians”

Sergio Delvescovo, ING

According to the ABS Counts of Australian Businesses, the number of self-employed Australians has grown from 1.52 million in 2021–22 to 1.74 million in 2024–25, an increase of more than 14% in five years. While much of the initial growth followed the shift towards more flexible working arrangements during the pandemic, the upward trend has continued, suggesting self-employment is now a more permanent feature of the labour market. In December 2025, ING introduced a refreshed credit policy that reflects years of careful review and consultation. The update represents a strategic commitment to supporting small business owners, freelancers and company directors who have long faced hurdles in accessing home loans. “By taking the time to understand what brokers and their self-employed customers need, we’re proud to deliver a policy that puts ING forward as a strong alternative for self-employed Australians,” says Sergio Delvescovo, ING’s national sales manager for broker and acting head of mortgages. While many borrowers are navigating a challenging economic environment, self-employed individuals including sole contractors, small business owners and gig economy workers are often among the most impacted. Without traditional payslips or standard employment histories, these borrowers can face additional hurdles despite running strong, profitable businesses. ING’s updated approach draws on more flexible assessment options designed to better align with how self-employed borrowers earn, manage and report their income.

At the centre of ING’s updated policy is a streamlined income verification pathway aimed at reducing documentation requirements for eligible borrowers. Previously, like most lenders, ING required two years of financial records to assess serviceability. The updated policy allows customers to use just one year of financials under specific conditions. The one-year option is available when borrowers meet several criteria, including a maximum loan-to-value ratio of 80%, 90% income shading applied to the single year of income, an Australian Taxation Office Notice of Assessment, and no debt consolidation as part of the loan purpose. For company directors, a minimum 50% ownership stake is required. “This policy change addresses one of the most common pain points for self-employed borrowers and their brokers,” explains Delvescovo. The change recognises that established business owners with consistent income shouldn’t necessarily be subject to the same documentation requirements as those with more variable earnings. For many self-employed professionals, two years of paperwork has been an administrative burden rather than a meaningful measure of their ability to service a loan.

Beyond the one-year pathway, ING has also refined how it assesses income for company directors. Under the updated rules, directors who hold at least 50% ownership can use their proportional share of company profit for servicing calculations. This addresses a long-standing frustration in self-employed lending. Many business owners operate through company structures for tax efficiency and risk management, but traditional lending policies have often struggled to properly reflect this income. Allowing proportional profit recognition provides a more accurate view of how many business owners generate and retain income. The policy offers three distinct assessment pathways depending on each borrower’s circumstances. The traditional two-year approach remains available and allows for 100% of income to be considered with no shading, higher LVR limits of up to 95% for owner-occupied properties and 90% for investment, and the ability to include debt consolidation as part of the loan purpose. For borrowers seeking a simpler assessment using individual tax returns only, ING also offers an ITR Income Only pathway. This option permits up to 95% LVR, provided retained profits and addbacks are not included in the income calculation. Company financials are still required to confirm the business is trading profitably. Responding to market change The years following the royal commission saw many lenders tighten credit policies, with self-employed borrowers often bearing the brunt of increased scrutiny. Against this backdrop, ING undertook a deliberate, multiyear review of its policy settings, serviceability rules and overall product experience. Rather than making incremental changes, the lender coordinated across credit, product, sales and broker communications teams to ensure the updated policy would be competitive, practical and workable in real-world broker scenarios. The timing of the policy update reflects broader shifts across the industry. As self-employment becomes more mainstream, brokers have increasingly called for lending options that better reflect the realities of running a business. Limited lender choice in this segment has been a persistent challenge for advisers supporting self-employed customers.

Building adviser confidence Throughout the development process, ING placed strong emphasis on ensuring the policy would work in practice for mortgage brokers and their customers. Adviser input influenced many of the final design decisions. The three distinct assessment pathways, for example, give brokers flexibility to match borrowers with the most appropriate option based on their circumstances. A company director with consistent income and strong equity may suit the one-year pathway, while a borrower with more variable earnings may prefer the traditional two-year approach.

“After years of building this [self-employed credit] policy from the ground up, we’re ready to support a segment of the market that deserves access to competitive, accessible home lending”

Safeguards remain in place. The 90% income shading applied to the one-year option provides a buffer for year-to-year variability, while the 80% LVR cap ensures borrowers have meaningful equity. The requirement for a minimum of two years’ trading history in the current business also screens out very new ventures where income may be less established. Practical implications for brokers For brokers, the updated policy expands the toolkit available when assisting self-employed customers. The one-year pathway may be particularly valuable for borrowers who have had a strong recent year, have restructured their business, or want to avoid compiling two years of documentation. The ability to recognise proportional company profit for servicing also supports directors who draw modest salaries but retain profits within the business. These borrowers have often struggled to demonstrate serviceability despite operating profitable enterprises. Early feedback suggests the policy has been well received by brokers seeking competitive alternatives for their self-employed customers. Ultimately, the success of the policy will depend on how smoothly it operates in practice, from assessment time frames to documentation handling. ING’s emphasis on broker feedback during development signals an awareness that strong policy design must be matched by consistent execution.

Looking ahead ING’s updated approach to self-employed lending reflects a view that this segment is both growing and deserving of lending solutions that balance prudent risk management with real-world practicality. For mortgage brokers, it provides another credible option to present to self-employed customers. ING’s willingness to adapt its policy settings to current market conditions suggests an intent to remain an active and competitive participant in this space. “After years of building this policy from the ground up, we’re ready to support a segment of the market that deserves access to competitive, accessible home lending,” says Delvescovo.

Simplifying the verification process

Recognising company income

Published 18 Mar 2026

Sergio Delvescovo, ING

Self-employed income verification – Year 1

Customers can use one year of income (90% income shading applies) provided the following conditions are met:

No debt consolidation

(owner-occupied and investment)

Previous year removed from financial statements (not redacted)

Notice of Assessment required

Minimum 50% company ownership

Maximum LVR: 80%

ITR allowed

Minimum of 2 years trading in current business

Minimum 50% company ownership

100% of income is considered (no shading)

Debt consolidation permitted

Maximum LVR OF 95% for owner-occupied and 90% for investment

Customers can use two years of income provided the following conditions are met:

Self-employed income verification – Year 2

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