Home loans when you are self-employed

What lenders look at when your income does not arrive on a payslip.

Why it feels harder

Lenders want to see that income is stable and likely to continue. With business income they usually rely on tax returns and financial statements rather than payslips, and they may average income across years.

Full documentation

Commonly requested: two years of personal and business tax returns, notices of assessment, business financial statements, and an ABN that has been registered for a period set by the lender.

Alternative documentation

Some lenders offer loans assessed on business bank statements, BAS statements or an accountant's letter. These products can carry different pricing and conditions, so compare carefully and ask the broker to explain the trade-offs.

Add-backs

Lenders may add back certain non-cash or one-off expenses, such as depreciation, to your assessable income. Policies differ, which is one reason a broker who works with many self-employed clients can be useful.

Prepare early

Lodging tax returns on time and keeping business and personal finances separate makes applications cleaner. Talk to your accountant and your broker together if you are planning to buy in the next year.