How to Get a Home Loan If You’re Self-Employed
Being self-employed shouldn’t be a barrier to home ownership – but too often, it feels like one. Unlike salaried employees, self-employed applicants are subject to more scrutiny, more paperwork, and a lot more confusion. The system isn’t built around business owners; it’s built around predictable pay slips.
That doesn’t mean you can’t get approved. It just means the path looks a little different – and it’s crucial to understand how lenders assess self-employed income, what documents you’ll need, and how to put your best foot forward.
In this guide, we’ll walk through exactly how to get a home loan if you’re self-employed, and how to make sure your business success translates into borrowing power.
Why Lenders See Self-Employed Borrowers as Riskier
From a lender’s perspective, self-employed income can be unpredictable. One month you’re booming, the next you’re lean. That volatility means banks look for more assurance. Even if you’re earning more than a PAYG employee, inconsistent cash flow or unclear documentation can raise red flags. What you take home and what you report on paper aren’t always the same – and lenders care about the paper.
Your Business Might Be Thriving - But Can You Prove It?
The challenge for most business owners is that they do exactly what the tax system allows them to: minimise income, maximise deductions. Smart for tax time, not so smart for lending. That’s why preparing for a loan application starts well before you apply. You need to demonstrate that your business is profitable, stable, and has the capacity to support a mortgage.
What Banks Want to See
Most lenders will want to see at least two years of financials—this means your personal and business tax returns, notice of assessments, and often your BAS statements. If your income is consistent and clearly documented, you’re in a great position. But even if you’re a newer business or have had one slower year, there are still options available.
Some lenders specialise in self-employed loans and understand how to interpret non-standard income. This is where working with an experienced broker becomes essential. At Xplore Financial Services, we help clients package their financials in the most compelling way – highlighting strengths and clarifying any volatility.
Low-Doc Loans Are a Viable Option - But There Are Trade-Offs
If you’ve been trading for less than two years or don’t have all the documentation, a low-doc loan may be an option. These loans rely on alternative forms of verification, like an accountant’s letter or business bank statements, but usually come with tighter conditions—higher interest rates, larger deposits, or restricted lender choice.
Low-doc loans aren’t for everyone, but they can be a stepping stone for business owners who are just getting started or those recovering from a tough financial year. And once you’ve built more history, refinancing into a standard product is very achievable. If you’re curious about how that works, our guide on how to refinance your home loan in Australia walks through the steps.
Getting Your Financials Ready for the Application
If you’re planning to apply for a home loan in the next 6–12 months, now’s the time to get your financials in order. Separate business and personal accounts. Reduce your deductions if possible – especially the ones that make your income look artificially low. And most importantly, stay up to date with tax returns and BAS statements.
Lenders aren’t just looking for income – they’re looking for consistency, stability, and transparency. If your income dropped last year, be ready to explain why. If your business has a seasonal rhythm, make sure your broker can present that story clearly.
Why Broker Experience Makes All the Difference
The truth is not all lenders are equal, and not all brokers know how to navigate the self-employed space. You need someone who knows which lenders will work with your situation—not against it. We’ve helped clients ranging from tradies and consultants to startup founders and creatives secure loans even when traditional banks said no.
At XploreFS, we don’t just submit your paperwork—we present your business case in the best possible light. We understand how to position your income, explain fluctuations, and find the lender that matches your profile.
In Conclusion: Yes, You Can Get a Home Loan
Being self-employed means taking control of your income – and with the right guidance, you can absolutely take control of your property journey too. Don’t let the complexity of the process hold you back. Whether you’ve been in business for six months or six years, there’s a path forward.
Let’s talk about how we can make it happen – reach out today to explore your options.
Frequently Asked Questions About Self Employed Loans
Can I get a home loan if I’ve only been self-employed for 1 year?
Yes, but your options will be more limited. Most mainstream lenders prefer at least two years of self-employed income, but some specialist lenders may consider just one year – especially if you have a strong financial position, consistent income, and a larger deposit.
Do I need to show both personal and business tax returns?
In most cases, yes. Lenders want a clear picture of your total income and business performance. Expect to provide your last two years of personal and business tax returns, along with your ATO Notices of Assessment and possibly BAS statements.
What’s a low-doc loan and when should I consider one?
A low-doc loan is designed for self-employed borrowers who don’t have traditional income documents. Instead of tax returns, you might supply bank statements, BAS summaries, or an accountant’s declaration. These are a good option if your business is new or your income is hard to document – though interest rates may be slightly higher.
Does being self-employed affect how much I can borrow?
Yes, potentially. Because your income may be viewed as less predictable, lenders often apply stricter servicing criteria. However, a well-prepared application, clean credit, and a solid deposit can still get you strong borrowing power – especially with the right lender.