self-employed home loan

Self-employed Home Loan – The Ultimate Guide

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.