Self-employed? Ubank will now look at one year's tax return, and another non-bank has joined the 5% Deposit Scheme. What this week's lender changes mean for you

Rates are heading up again, but some lenders are still quietly changing who they'll lend to. This week, Ubank opened its home loans to sole traders who can show just one year's tax return, and Resimac became the second non-bank lender on the federal 5% Deposit Scheme panel. Neither change makes borrowing cheaper. But if you're self-employed or saving for your first home, they could change which lenders are worth a look. Here's what changed, who it suits, and the catches to know about.

Why lender policy still matters when rates are rising

Most of the news about home loans lately has been about rates. Inflation came in at 4.3% for September, and all four major banks now expect the Reserve Bank to lift the cash rate on Tuesday 3 November. The decision is due at 2:00pm Adelaide time (2:30pm AEDT). If it goes ahead, it would be the fifth rise this year.

Higher rates mean lenders work out your borrowing power using higher test rates, so many people can borrow less than they could at the start of the year. That's why lender policy matters. Policy is the set of rules a lender uses to decide whose income counts, how it's checked and how much deposit you need. Two people on the same income can get very different answers from different lenders, simply because of how each one treats that income.

Lenders also need to keep writing loans. Mortgage demand is softer than a year ago, and some lenders are responding by widening who they'll lend to rather than cutting rates. This week's changes are a good example.

Ubank now accepts one year's tax return from sole traders

Ubank, the digital bank owned by NAB, has updated its income verification policy for self-employed borrowers. According to reports from Australian Broker and Broker Daily on 30 October, eligible sole traders can now apply for a home loan using:

• one year's individual tax return, and
• the matching ATO Notice of Assessment for that year.

That's a meaningful change for some borrowers. Many lenders ask self-employed applicants for two years of tax returns and assessments. If your business has been going for a while but you've only recently got your latest return lodged, or your earlier year looks very different, being assessed on one year can make a real difference.

To be eligible, Ubank's reported criteria are:

• ABN history: an Australian Business Number that's been continuously active for at least two years.
• Trading history: at least two years of continuous, profitable trading.
• Deposit: a maximum loan-to-value ratio (LVR) of 80%, so you'll need at least 20% of the property's value, plus purchase costs such as stamp duty.
• Loan term: up to 30 years.
• Recent figures: your most recent financial year-end must be no older than 21 months.
• Structure: sole traders only. Borrowers who run their business through a company or trust aren't eligible, and complex trust structures and construction loans are excluded.

The policy is available through brokers. Ubank says it has more than 17,000 accredited brokers and that eligible applications can be approved in around two days. That's Ubank's own estimate, and actual timeframes depend on your application and how complete your paperwork is.

The catches if you're self-employed

"One year" sounds simple, but there are a few things to weigh up before you get too excited.

You still need two years of history. The shorter paperwork doesn't mean a newer business qualifies. Your ABN needs to have been active for two years, and you need two years of profitable trading. You just don't need to document both years with tax returns.

One year cuts both ways. If your latest year was your best year, being assessed on it can help. If it was a quieter year, it's still the year the lender will use. A two-year average from another lender might give you a better result. The right choice depends on your actual numbers.

The 20% deposit is firm. With an 80% LVR cap, this policy isn't a low-deposit option. If you've got less than 20%, you'll need to look at other lenders or options, and those may come with lenders mortgage insurance.

Structure matters. Plenty of small business owners trade through a company or a family trust for good tax or legal reasons. If that's you, this policy doesn't apply. Some other lenders do have options for company and trust income, but the rules and paperwork are different.

Fresh figures help. The 21-month rule means your latest financial year can't be too old. If you're behind on your tax lodgements, getting them up to date is often the first step, whichever lender you end up with.

Resimac joins the 5% Deposit Scheme

The other notable change this week is for first home buyers. Resimac has joined the federal government's 5% Deposit Scheme lender panel, according to Broker Daily. It's the second non-bank lender on the panel, and takes the total number of participating lenders to 55.

Under the scheme, eligible first home buyers can buy with a deposit as small as 5% without paying lenders mortgage insurance, because the government guarantees part of the loan. The scheme was expanded on 1 October 2025, with income caps removed, places made unlimited and property price caps lifted. You can only use the scheme through a lender on the panel, so each new lender adds another option to compare.

Resimac's scheme loan is reported to include:

• redraw and an offset account,
• no application or ongoing fees (a settlement fee applies),
• a 3% serviceability buffer, which means you'll be assessed on whether you could afford repayments at a rate 3 percentage points above your actual rate, and
• availability for eligible Australian citizens and permanent residents.

A smaller deposit doesn't change the maths on repayments. You'll still need to show you can afford the loan at today's higher rates plus the buffer, and with a 5% deposit you'll be borrowing more, so you'll pay more interest over time. More choice on the panel is useful, but the right lender is still the one whose rate, features and assessment fit your situation, not just the one that's newest.

Other changes worth knowing

• CBA and rental income: since 9 October, Commonwealth Bank accepts a Cotality Estimated Rental Amount report to verify expected rent on untenanted properties. That may help investors buying a property that isn't leased yet.
• CBA and 5% Deposit Scheme construction loans: customers who settled under the scheme now need Housing Australia approval to extend a construction loan term or increase the loan amount. If you're building under the scheme and expect delays or cost increases, factor that in early.

Credit is still growing

For context, the Reserve Bank's latest credit figures, released on Friday 30 October, show housing credit grew 0.4% in September and 7.0% over the year. Business credit grew 0.9% in the month and 11.3% over the year, and total credit rose 8.4% over the year. In other words, despite four rate rises this year, lending hasn't stalled. Lenders are still competing for borrowers, and policy changes like these are one of the ways they do it.

What to do now

• Know your income type. Are you a sole trader, or do you trade through a company or trust? Are you PAYG with overtime or bonuses? Your answer narrows down which lenders and policies are relevant.
• Get your paperwork current. Recent tax returns, Notices of Assessment and business activity statements make almost every self-employed application easier.
• Check eligibility before you apply. Every lender assesses differently, and several declined applications can show up on your credit file. It's worth knowing where you're likely to fit before you lodge anything.
• Compare more than the rate. Look at the comparison rate, fees, offset and redraw, and how each lender would assess your income. A slightly higher rate with a lender who'll actually approve you may beat a lower rate you can't get.
• Allow for Tuesday. If the cash rate rises to 4.85% as the big banks expect, borrowing power may tighten a little further. Build some buffer into your plans.

Key dates

• Tuesday 3 November 2026, 2:00pm Adelaide time (2:30pm AEDT): RBA cash rate decision.
• From 23 November 2026: CBA simplifies some customer identity checks for settlements (relevant if you're settling with CBA after that date).

Related reading

• Nearly 1 in 3 mortgage holders are now at risk of stress, and APRA says late repayments are ticking up (Friday 30 October)
• Inflation just hit 4.3%, and all four big banks now expect a rate rise on Melbourne Cup Day (Thursday 29 October)
• Rates are up, but some lenders are quietly changing the rules (Friday 23 October)
• First home buyers are stepping back. Here's what still works if you're trying to buy (Tuesday 13 October)
• Advertised rate or comparison rate? (Saturday 10 October)

Sources: 1. Australian Broker, Mina Martin, "Ubank opens home loans to sole traders with one-year tax return", 30 October 2026 — one year's individual tax return + matching ATO Notice of Assessment; ABN active 2+ years; 2+ years profitable trading; max 80% LVR; terms up to 30 years; most recent financial year-end no older than 21 months; sole traders only (companies and trusts not eligible); 17,000+ accredited brokers; Ubank's ~2-day approval estimate (https://www.brokernews.com.au/news/breaking-news/ubank-opens-home-loans-to-sole-traders-with-oneyear-tax-return-290237.aspx). 2. Broker Daily, Julian Barnes, "Broker policy round-up: Lender changes at a glance 22–29 October", 30 October 2026 — Ubank criteria incl. complex trusts and construction excluded; Resimac second non-bank on 5% Deposit Scheme panel, 55 lenders, Quickstart features and 3% buffer; CBA rental income (from 9 October), 5% Deposit Scheme construction loans, identity checks (from 23 November) (https://www.brokerdaily.au/lender/22183-broker-policy-round-up-lender-changes-at-a-glance-22-29-october). 3. Reserve Bank of Australia, Financial Aggregates September 2026, released 30 October 2026 — housing credit +0.4% month / 7.0% year; business credit +0.9% / 11.3%; total credit 8.4% year (https://www.rba.gov.au/statistics/frequency/fin-agg/2026/fin-agg-0926.html). 4. RBA cash rate target 4.60%; next Monetary Policy Decision Tuesday 3 November 2026, 2:30pm AEDT (2:00pm Adelaide time); big four forecasts per Canstar, 28 October 2026 (https://www.canstar.com.au/news/inflation-push-cash-rate-back-highest-since-gfc/). 5. 5% Deposit Scheme expansion from 1 October 2025, as covered in our 13 October article.

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