Self-Employed · Free Guide · Clear Path Home Loan

Self-Employed? Get The Right Lender.

Self-employed borrowers are assessed very differently by lenders. Most people are surprised by how much they can borrow — and by which lenders are the most flexible for their situation.

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Last reviewed: April 2026

Quick Answer

Can I get a home loan in Australia if I’m self-employed?

Yes — self-employed borrowers can usually borrow what a PAYE borrower can, but lenders differ dramatically in how they assess self-employed income (ASIC MoneySmart). Most majors require two full years of tax returns (ATO); specialist lenders accept one year, and “low-doc” lenders accept 6–12 months of BAS plus an accountant’s letter. Legitimate add-backs — depreciation, one-off expenses, super you control — can boost assessable income by 20–40%. The right lender matters more than for PAYE borrowers — a specialist who runs a self-employed practice knows who accepts what, first time.

2 years’ tax returns at most majors; 1 year at specialists
Low-doc: 6–12 months BAS + accountant letter
Add-backs can legitimately boost assessable income 20–40%
Lender choice matters more than for PAYE borrowers

2 yrs

Tax returns most lenders require for self-employed income

20%+

Deposit that opens the most lender options for self-employed

60+

Lenders in Australia — policies vary enormously for self-employed

How lenders assess self-employed income

Most lenders average your taxable income over the last two financial years using your personal and business tax returns. If your income has grown significantly in the last year, this averaging can reduce the income lenders are willing to use.

Low-doc loans — when they apply

If you have been self-employed for less than two years or cannot provide standard tax returns, some lenders offer low-documentation loans. These typically require a higher deposit (20%+), have slightly higher rates, and use alternate income verification like accountant letters or BAS statements.

The tax return problem

Minimising taxable income through legitimate deductions reduces your tax — but it also reduces the income lenders see. Some lenders will add back certain deductions (depreciation, vehicle expenses) to get a more accurate picture of your actual income. A specialist knows which lenders use addback calculations.

Business structure matters

Sole traders are assessed differently from company directors. If your income is paid through a company or trust, lenders look at the business financials as well as your personal returns. Profit distribution methods affect what income lenders will accept.

Which lenders are most flexible

Lender policies for self-employed borrowers vary enormously. Some banks have very conservative policies. Others are far more flexible and use full income including addbacks. A specialist who works with self-employed borrowers daily knows exactly which lenders to approach for your situation.

Common mistakes

What people get wrong

❌

Minimising income too aggressively close to applying

The lower your taxable income, the less you can borrow. If you know you want to apply for a home loan in the next 12–18 months, talk to your accountant about balancing tax minimisation against borrowing capacity.

❌

Applying to the wrong lender first

A rejection on your credit file makes subsequent applications harder. Self-employed borrowers especially benefit from using a specialist who knows which lender suits their income type and structure before any application is submitted.

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Assuming you need 20% deposit

While 20% gives you the most lender options, self-employed borrowers can access home loans with smaller deposits through the right lender or under government schemes if eligible.

❌

Not having financials up to date

Many self-employed borrowers fall over at the document stage because their latest tax return has not been lodged. Get your most recent financials lodged well before you want to apply — late lodgement is one of the most common delays.

💡 The specialist difference

For self-employed borrowers, lender selection is everything. The same income that one lender declines, another will approve. A specialist who works regularly with self-employed clients knows exactly which lender will view your structure and income most favourably — before any application is lodged.

Common questions

Frequently asked questions

Most mainstream lenders want 2 years of self-employment history with tax returns for both years. Some specialist lenders will consider 12 months with a strong income history and letter from an accountant. Less than 12 months makes approval very difficult with most lenders.

Yes — but most lenders average your last two years of income. If your income jumped significantly last year, a specialist can find lenders who place more weight on your most recent year or use addbacks to better reflect your actual income.

Typically: 2 years personal tax returns and notices of assessment, 2 years business tax returns (if applicable), 2 years of financial statements, recent BAS statements, and 3–6 months bank statements. Your specialist will confirm exactly what each lender needs.

It is difficult with mainstream lenders. Some specialist lenders will consider you with a strong ABN history, letter from an accountant, and a larger deposit (usually 20%+). Your specialist will know which lenders to approach.

Yes. If you receive a salary from your own company, lenders may treat you as an employee for the salary component but also look at the company financials to assess stability. Dividends and director fees are assessed differently again. A specialist will structure your application correctly.

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