Business owner, contractor, or freelancer? Get approved with full doc, low doc, or alternative documentation options.
Traditional lenders prefer payslips and employment contracts. But there are lenders who understand business income.
Different documentation pathways depending on your situation.
Standard home loan using tax returns and financials. Best rates and lowest costs.
Lenders average your last 2 years taxable income, then may add back certain deductions:
Year 1 Taxable Income: $85,000
Year 2 Taxable Income: $95,000
Average: $90,000
Add back depreciation: + $8,000
Assessable Income: $98,000
Borrowing Power: $520K - $600K
Alternative documentation for newer businesses or those who can't provide full tax returns.
Uses business bank statements to calculate income. Good for high cash flow businesses.
Lenders calculate average monthly deposits, multiply by 12, then apply a percentage (typically 50-80%):
Average Monthly Deposits: $15,000
Annualized: $180,000
Lender uses 60%: × 0.60
Assessable Income: $108,000
Borrowing Power: $570K - $660K
These lenders specialize in business owners, contractors, and self-employed borrowers.
Full Doc from
5.89%
Low Doc from 6.39%
Best for: High-income self-employed with 2 years tax returns. Generous add-backs.
Self-Employed Features:
Full Doc from
5.94%
Low Doc from 6.59%
Best for: Business owners wanting a full banking relationship.
Self-Employed Features:
Low Doc from
6.29%
Bank statements accepted
Best for: Low doc and alternative income verification. Newer businesses welcome.
Self-Employed Features:
Low Doc from
6.49%
Specialist lender
Best for: Difficult income situations. Very new businesses or inconsistent income.
Self-Employed Features:
Strategies to improve your chances and increase how much you can borrow.
Don't wait until October 31st. Lodge as soon as possible after June 30th. The sooner you have 2 years of lodged returns, the sooner you can apply for full doc rates.
Tell your accountant you're applying for a home loan. They can structure your financials to maximize borrowing power while still being tax-effective. Add-backs matter!
Separate bank accounts make income verification cleaner. Messy bank statements raise red flags. Clean records = faster approval.
Lenders prefer stable or increasing income. If your income fluctuates wildly, be prepared to explain why and provide evidence of future contracts/work.
20% deposit opens up far more lender options and better rates. If you can only do 10%, expect to pay LMI and have fewer choices.
Self-employed applications are complex. A broker who specializes in business owners knows which lenders to approach and how to present your application.
Yes, but your options are limited. You'll likely need low doc or bank statement loans with rates 0.5-1.0% higher than full doc. Expect to need 20% deposit minimum. If you were employed in the same industry before going self-employed, some lenders will consider your previous employment history. Once you hit 2 years of lodged tax returns, you can refinance to full doc rates.
Possibly. Lenders use taxable income, not gross income. Depreciation, home office, vehicle expenses, etc. all reduce your taxable income and therefore borrowing power. The good news: many lenders "add back" depreciation and non-cash deductions. Work with your accountant to balance tax minimization with loan serviceability. You may need to claim fewer deductions for a year or two before applying.
Sole trader: Simplest for lending. Your personal tax return shows business income. Company: More complex. Lenders look at company financials plus your director's salary/dividends. May need company financials + personal tax returns. Trust: Most complex. Lenders examine trust distribution statements. Some lenders avoid trusts entirely. Generally, simpler structures = easier approval.
Yes, for low doc loans. BAS (Business Activity Statements) show your business income and GST. You'll need 6-12 months of consecutive BAS statements. This is common for newer businesses that haven't lodged 2 years of tax returns yet. Rates will be higher (typically 6.2-6.8%) compared to full doc (5.9-6.2%). Once you have 2 years tax returns, refinance to full doc for better rates.
For most self-employed loans, yes. The accountant's letter confirms your business is legitimate, your income is as stated, and your financials are accurate. Some low doc lenders also accept accountant's declarations stating your income level without full financials. Your accountant should be a registered CPA or CA. Letters from unregistered "accountants" or bookkeepers usually aren't accepted.
Yes, declining income is a red flag. Lenders average your last 2 years, so one lower year brings down your average. Be prepared to explain the drop (e.g., took time off for family, one-off business expense, COVID impact). If you can show income has recovered (recent bank statements, new contracts), this helps. Some lenders will focus on the most recent year if you can justify why it's more representative.
Complete our 2-minute assessment designed for self-employed borrowers. We'll show you exactly which lenders will work with your situation and what rates you can get.
✓ Sole traders, companies, trusts welcome • ✓ No obligation • ✓ We know which lenders work with your structure