Being your own boss has its perks, but when it comes to getting a home loan, things can feel a little more complicated. Lenders love predictability, and self-employment often doesn’t fit the neat little boxes banks prefer. But don’t stress—with the right prep and a great broker by your side, getting a self-employed home loan is 100% doable.
Why Self-Employed Home Loans Are Different
Lenders assess risk based on income stability. Since self-employed income can fluctuate, lenders may require more documentation and a deeper look at your financials. But that doesn’t mean you can’t qualify—you just need to know how to present your case.
What Lenders Want to See (Hint: It’s Not Just Your Tax Return)
Lenders typically want:
- 1–2 years of tax returns
- Business Activity Statements (BAS)
- Profit and loss statements
- Bank statements
- A strong credit history
If your financials are solid and you’ve been self-employed for over 12 months, you’re in a good position.
Low Doc vs Full Doc Loans: What’s Right for You?
If you don’t have two years of tax returns, a low doc loan might be the answer. These require less documentation but may come with slightly higher interest rates. A mortgage broker can help you find the best option for your situation.
How to Strengthen Your Application
- Pay down existing debts
- Keep personal and business finances separate
- Maintain a healthy savings buffer
- Work with a mortgage broker who understands self-employed lending
FAQs from Self-Employed Borrowers
Can I use my company income? Yes, for a self-employed home loan most lenders will use company income however they will only use company income available to you.
What if I’ve only been self-employed for 6 months? Some lenders may consider you if you were previously in the same line of work as a PAYG employee.
Final Tip: Get your paperwork in order early and connect with a broker who can match you with the right lender.