Self-employed? You can still get a great home loan
Banks can make it hard when your income doesn't arrive as a regular payslip. We know which lenders understand business owners, how they read your financials, and what paperwork gets you approved.
Sole traders, contractors, partnerships, companies and trusts. No cost to you in most cases.
Why business owners get knocked back
It's rarely because you can't afford the loan. More often it's how your income looks on paper, or applying to the wrong lender.
Taxable income looks low
Good tax planning reduces your taxable income, and that's the number many lenders start from.
Income goes up and down
A strong year after a quieter one can be read very differently depending on the lender's policy.
A newer ABN
Some lenders won't look at you until you've traded for two years. Others will sooner.
Paperwork behind
Tax returns not yet lodged, or financials that don't match your BAS, can stall an application.
The wrong lender
Every lender has its own rules for business owners. A decline with one doesn't mean a no from all of them.
Too many applications
Each application leaves a mark on your credit file, so trying lender after lender can make things harder.
Full-doc or low-doc?
Which one suits you depends on how up to date your tax returns are and how your business is set up. We'll tell you which way to go before you apply.
| Full-doc loan | Low-doc loan | |
|---|---|---|
| How income is shown | Tax returns and notices of assessment | BAS, business bank statements or an accountant's letter |
| Usually suits | Established businesses with tax returns lodged | Newer businesses, or when tax returns aren't done yet |
| Interest rates | The same rates as other borrowers | Can be higher |
| Deposit | Standard requirements | Often a larger deposit |
Many lenders also add back some expenses, such as depreciation or one-off costs, to your taxable income. Knowing which lenders do this can make a real difference to what you can borrow.
What to have on hand
You won't need everything on this list. We'll tell you exactly which documents your lender wants, and we're happy to talk to your accountant directly.
- Your ABN and how long it's been registered.
- Tax returns. Personal and business, usually for the last two years.
- Notices of assessment from the ATO for those years.
- Financial statements. Profit and loss and balance sheet, if your accountant prepares them.
- Recent BAS and business bank statements, especially for low-doc loans.
- Statements for any debts, including business loans, car finance and credit cards.
Presenting your income the right way
We put the work in before the application goes in, so the lender sees the full picture the first time.
- A free chatAbout your business, your income over the last few years and your goals.
- Review your financialsWe work out how different lenders are likely to assess your income.
- Match the lenderFull-doc or low-doc, with a lender whose rules suit your business.
- A clear applicationYour income explained properly, with the right documents attached.
- Settlement and beyondWe check in as your business grows, in case a better loan becomes available.
Self-employed home loan FAQs
How long do I need to be self-employed to get a home loan?
Many lenders like to see two years of tax returns. Some will consider one year, and a few will look at a shorter trading history if you've worked in the same industry before. We'll match you with a lender whose rules fit where your business is at.
Can I get a home loan if my tax returns aren't up to date?
Often, yes. Some lenders offer low-doc (alternative documentation) loans that use your BAS, business bank statements or a letter from your accountant to show your income. Lenders still have to check that the loan is affordable for you, so you'll need some evidence of income.
Are low-doc loans more expensive?
They can be. Some come with a higher interest rate or fees, or need a larger deposit. Once your tax returns are lodged, it's often worth reviewing the loan to see whether you can move to a standard loan with a lower rate. We'll remind you when the time is right.
Does my business structure affect how much I can borrow?
It can. Lenders look at income from a sole trader, partnership, company or trust differently, and some will count profit kept in a company or trust that others ignore. We'll explain how your structure is likely to be assessed before you apply.
Can I use the First Home Guarantee if I'm self-employed?
Yes. Being self-employed doesn't rule you out of the First Home Guarantee, though you'll still need to meet the scheme's eligibility rules and the lender's own criteria. See our first home buyer guide for how it works.
How much does it cost to use Monza Finance Group?
In most cases there's no cost to you. We're paid a commission by the lender when your loan settles. If a fee ever applies, we'll tell you in writing before we go ahead.
Been told no by your bank?
Talk to us before you try again. A free chat is often all it takes to work out which lender will see your business the right way.
General information only. Not financial advice. It doesn't take into account your objectives, financial situation or needs. Speak to a licensed broker about your situation.
Lending criteria, fees and charges apply, and all loans are subject to lender approval.
Monza Finance Pty Ltd, ABN 21 617 504 186. Michael Barton is an Authorised Credit Representative (CRN 497244) of LMG Pty Ltd, Australian Credit Licence 390222.