self employed home loans

Yes. Self-employed borrowers can access the same home loan products and rates as PAYG salary earners, provided you have adequate documentation (typically two years of tax returns). Even if you have less than two years of trading history or limited documentation, options such as low doc home loans or alternative income verification pathways exist. Our mortgage broker team finds the right lender for your situation.

Most lenders require two years of tax returns and notice of assessments for a full doc self-employed home loan. Some lenders accept one year if you have industry experience or are in a specialist profession. Your tax returns must be the most recently lodged with the ATO. If your returns are overdue, you will need to lodge them before applying. Our mortgage broker team advises on timing your application around your tax lodgements.

A low doc home loan allows self-employed borrowers to use alternative documentation instead of full tax returns. Acceptable documents include BAS statements (12 months), an accountant declaration of income, or business bank statements. Low doc loans typically have higher interest rates, require a larger deposit (20% to 40%), and may cap LVR at 60% to 80%. They are useful for newly self-employed borrowers or those with outdated tax returns.

Add-backs are business expenses that lenders add back to your taxable income when assessing borrowing power. Common add-backs include depreciation, one-off capital expenses, voluntary superannuation contributions, and motor vehicle expenses. For example, if your taxable income is $80,000 but you claimed $20,000 in depreciation, some lenders will assess your income at $100,000. Not all lenders accept the same add-backs. Our mortgage broker team selects the lender with the most favourable add-back policy.

Yes. An active Australian Business Number (ABN) is required for all self-employed home loan applications. Most lenders require your ABN to have been registered for at least 12 to 24 months. If you are GST registered, lenders may also request 12 months of BAS statements. Your ABN registration date is used to verify your trading history. Our mortgage broker team checks your ABN history as part of the initial assessment.

A sole trader provides personal tax returns (no separate business tax return is needed). Lenders assess your net business income from the tax return, plus any allowable add-backs. Some lenders average two years of income, some use the lower year, and some accept the most recent year. Sole traders have a simpler documentation process than companies or trusts. Our mortgage broker team selects the lender whose assessment method gives you the highest borrowing power.

Company directors typically provide both personal and company tax returns, plus company financial statements (profit and loss, balance sheet). Lenders assess your salary plus any dividends or director fees. If you own more than 25% of the company, you are classified as self-employed. Some lenders also consider retained profits in the company. Our mortgage broker team ensures the lender captures the full picture of your income.

Yes, though options are more limited. Some lenders accept one year of tax returns if you have prior industry experience (for example, a plumber who was employed for five years before starting their own business). Some specialist lenders accept shorter trading histories with alternative documentation. Low doc home loans are also an option for newly self-employed borrowers. Our mortgage broker team identifies which lenders on our panel will accept your specific situation.

A notice of assessment (NOA) is a document issued by the ATO after processing your tax return. It confirms your taxable income, tax payable, and any refund or amount owing. Lenders require your NOA alongside your tax returns to verify that the returns are genuine and lodged. You can download your NOA from your MyGov account linked to the ATO. Most lenders require NOAs for the same years as the tax returns provided.

If applying for a low doc home loan, lenders typically require 12 months of Business Activity Statements (BAS). BAS shows your GST turnover, which lenders use to estimate your business income. You must be registered for GST for at least 12 months. BAS must be lodged and up to date with the ATO. Some lenders also accept BAS as supplementary documentation for full doc applications to demonstrate current trading activity.

Not necessarily. With a full doc self-employed home loan (two years of tax returns), you get the same rates as PAYG borrowers. Low doc home loans typically have higher interest rates (0.5% to 1.5% above standard rates) because the lender takes on more risk with less income verification. Our mortgage broker team always aims for the full doc pathway first. If low doc is needed initially, we plan a strategy to refinance to a lower rate once your tax returns are up to date.

Your borrowing power depends on your assessed income, expenses, existing debts, and the lender's assessment method. With a full doc application, self-employed borrowers can borrow up to 95% LVR (same as PAYG). With low doc, maximum LVR is typically 60% to 80%. Add-backs can significantly increase your assessed income. Our mortgage broker team calculates your borrowing power across multiple lenders and selects the one that gives you the highest capacity.

With a full doc self-employed home loan, the deposit requirements are the same as PAYG borrowers: typically 5% to 20% depending on the lender and whether you pay LMI. Low doc loans require a larger deposit, typically 20% to 40%. A guarantor can help self-employed borrowers reduce the deposit needed. Our property deposit calculator helps you estimate.

Yes. A family guarantee can be combined with a self-employed home loan. The guarantor provides property equity as additional security, reducing your LVR and potentially avoiding LMI. You still need to demonstrate serviceability from your self-employed income. A guarantor helps with the deposit, not with proving your income. Our mortgage broker team structures the application to combine both elements.

Some lenders use the lower of two years, which would work against you if income dropped. Others use the most recent year, which would also be lower. In this situation, our mortgage broker team looks for lenders that average both years (benefiting from the higher previous year) or that accept alternative income verification. Timing your application around tax lodgement can also help if you expect the current year to be stronger.

Yes. Freelancers and contractors with an ABN are classified as self-employed. The same documentation requirements apply: tax returns, notice of assessments, and financial statements. If you have a long-term contract, some lenders may assess your income more favourably. Our mortgage broker team presents contract income in the most favourable way and identifies lenders that understand variable income streams.

Yes. Lenders review your bank statements as part of the self-employed home loan assessment. Separate business and personal accounts make it much easier for the lender to verify your income, expenses, and savings pattern. Mixed accounts create confusion and can delay your application. Our mortgage broker team advises separating accounts well before applying.

Yes. Self-employed borrowers can access investment property loans with the same documentation requirements. The rental income from the investment property can be included in your serviceability assessment. If using a low doc home loan for an investment, LMI may apply even at lower LVRs. Our mortgage broker team structures the investment loan to maximise tax efficiency alongside your business income.

Your accountant provides tax returns, notice of assessments, financial statements, and (for low doc) an accountant declaration of your income. They may also provide a letter confirming your trading history and business profitability. Our mortgage broker team coordinates directly with your accountant to ensure documents are prepared to lender specifications and add-backs are properly documented.

Yes. Many self-employed borrowers start with a low doc home loan when tax returns are not yet available, then refinance to a full doc loan once two years of tax returns have been lodged. This allows you to enter the market sooner and then secure a lower interest rate when your documentation catches up. Our mortgage broker team plans this refinance strategy from the start.

Lenders require your most recently lodged tax returns. If your returns are overdue, you will need to lodge them before applying for a full doc self-employed home loan. Some lenders have specific cut-off dates (for example, requiring the previous financial year return to be lodged by a certain date). A low doc loan may be an interim option while your accountant prepares overdue returns. Our mortgage broker team advises on the optimal timing.

Most lenders require evidence of genuine savings (typically 5% of the purchase price held for at least 3 months). This demonstrates financial discipline. Some lenders are more flexible for self-employed borrowers, accepting equity in an existing property, gifts from family, or consistent rent payments as evidence of savings capacity. Our mortgage broker team identifies which lenders have the most flexible genuine savings policy for your situation.

Yes. Lenders assess self-employed income very differently. A mortgage broker compares income assessment methods, add-back policies, documentation requirements, and rates across 35+ lenders. Going to one bank means you accept their specific method, which may not be the most favourable. A broker finds the lender that maximises your borrowing power and presents your income in the strongest light. The service costs $0.