You run your own business. You work hard, you pay your bills, and you’ve probably got more going on in a week than most people have in a month.
Then you apply for a home loan and suddenly it feels like the bank’s treating you like a risk.
I hear this all the time from self-employed clients across North Lakes, Moreton Bay and Brisbane. It’s frustrating. It can feel unfair. And honestly? A lot of it comes down to paperwork and lender policy, not whether you’d actually be good for the loan.
So let’s break down how self-employed home loans generally work, what lenders tend to look for, and how you might give yourself the best shot.
When you’re on a wage, a lender can look at a payslip and see a steady number. Easy.
When you’re self-employed, your income might go up and down. It might look different on paper than it does in your bank account. And it’s usually spread across tax returns, BAS statements and business accounts.
Lenders generally want to see that your income is stable and likely to keep coming in. With a business, that takes a bit more digging. More digging, not a closed door.
Every lender has its own rules, but many will want to see:
Two years of tax returns, both personal and business
Two years of Notices of Assessment from the ATO
Your ABN, and how long it’s been registered
Business financial statements, like a profit and loss and a balance sheet
Bank statements, personal and business
Some lenders may only need one year of tax returns, depending on your situation and industry. So if you’ve only been going for a year or so, it’s worth asking before you assume you’re stuck.
This is the one that catches a lot of business owners out.
Your accountant’s job is often to help keep your taxable income down. Fair enough. But a lender will generally assess your borrowing power based on the income in those same tax returns.
So a great tax result can sometimes mean a smaller loan.
The good news is that some lenders may add back certain expenses when they work out your income. Things like depreciation, or one-off costs that aren’t likely to happen again. How much gets added back can vary a lot between lenders.
If you’re planning to buy in the next year or two, have a chat with both your accountant and your broker. Getting everyone on the same page early can make a real difference.
Life gets busy. Plenty of business owners are a year or two behind on lodging. Some lenders offer what’s often called a low doc loan. Instead of full tax returns, they may accept things like BAS statements, business bank statements or a letter from your accountant.
Low doc loans can be handy, but there’s usually a trade-off. You might need a bigger deposit, the rate may be higher, and fewer lenders offer them. They’re not right for everyone, so it’s worth weighing up the full picture.
If a bank has said no, please don’t take it as the final word.
Every lender assesses self-employed income a bit differently. One might look at your latest year only. Another might average two years. Some are more comfortable with certain industries than others.
So a no from one lender doesn’t always mean a no from every lender. Sometimes it comes down to finding the one whose policy suits how your business actually runs, or structuring the loan a bit differently.
Keep your lodgements up to date. Current tax returns generally open up more options.
Separate business and personal spending. Clean statements are easier for a lender to read.
Watch your debts. Car loans, credit cards and buy now pay later can all reduce what you might be able to borrow.
Check your credit file. It’s free to request, and it’s better to spot any surprises early.
Talk to a broker before you start house hunting. Knowing where you stand first can save a lot of stress.
At Moni Finance Group, we have access to 60+ lenders. So we’re not trying to squeeze you into one bank’s rules. We take the time to understand how your business works, then look for lenders whose policies may be a better fit.
We’ll help you get your paperwork sorted, explain your options in plain English, and stick with you right through to settlement.
A lot of my self-employed clients are right here locally, in North Lakes, Mango Hill, Griffin, Murrumba Downs, Kallangur, Petrie, Redcliffe, Deception Bay, Burpengary, Narangba and Caboolture. We also work with business owners in Strathpine, Chermside, across Brisbane and up to the Sunshine Coast.
And whether you’re in Caboolture or Hamilton, the lender paperwork is the same headache. Trust me.
Wherever you’re based, we’ll work around your schedule. Because we know yours is already packed.
Can I get a home loan if I’ve been self-employed for less than two years?
Possibly. Some lenders may consider one year of trading history, and a few may look at less in certain situations. It generally depends on your industry, experience and overall financial position.
Do I need a bigger deposit if I’m self-employed?
Not always. With full documentation, deposit requirements may be similar to those for employed borrowers. Low doc loans often need a larger deposit.
Will my accountant’s tax minimisation affect my borrowing power?
It can. Lenders generally assess the income on your tax returns, although some may add back certain expenses. It’s a good idea to talk to your accountant and broker together if you’re planning to buy.
Is a low doc loan a bad idea?
Not necessarily. It can be a helpful option if your tax returns aren’t current. Just compare the costs and conditions carefully first.
Being self-employed shouldn’t mean feeling stuck when it comes to buying a home. If you’re not sure where you stand, or you’ve been knocked back before, give us a buzz or book a chat. We’ll talk it through and look at what your options could be.
Disclaimer: This information is general in nature and does not constitute financial, legal, or tax advice. All figures are estimates. You should seek professional advice tailored to your personal circumstances before making any financial decisions.
Hollie Green is a Credit Representative (CRN 539817) of Mortgage Specialists Pty Ltd, Australian Credit Licence 387025.
