Self-Employed? Here's How to Get a Home Loan in 2025

Self-employed Australians often find the home loan process more challenging, but with the right preparation, approval is absolutely achievable.

What Lenders Want to See

Unlike PAYG employees who can provide payslips, self-employed borrowers need to demonstrate income stability through:

• 2 years of tax returns: Most lenders want to see consistent income over 24 months
• Notice of Assessment: Confirms your tax returns are lodged with the ATO
• Business Activity Statements: Shows ongoing business activity
• Business bank statements: 6-12 months of trading history

How Income Is Calculated

Lenders typically calculate your income as:

• Average of last 2 years' net profit (sole trader)
• Your share of partnership/company profit + any wage/salary
• Add-backs may be allowed (depreciation, one-off expenses)

Example: If your net profit was $80,000 in year 1 and $100,000 in year 2, lenders would typically use $90,000 as your income.

Low-Doc Loan Options

If you don't have full financials, low-doc loans may be an option. You'll typically need:

• ABN registered for 12+ months
• Accountant's letter confirming income
• BAS statements
• Higher deposit (usually 20%+)

Note: Low-doc loans often come with higher interest rates.

Tips to Strengthen Your Application

• Lodge your tax returns on time (late lodgements are a red flag)
• Keep business and personal expenses separate
• Save a larger deposit (20%+ helps significantly)
• Pay down existing debts before applying
• Work with a broker who specializes in self-employed lending

Self-employed and ready to buy? Our specialists can help find lenders who understand your situation.