Self-Employed Specialists

Self-Employed? Lenders Who Understand

Many banks say no before they properly assess business income. We work with lenders who understand real cash flow, company structures, and how self-employment actually works.

Start Your Assessment

No credit check at initial stage | No cost to you | Business owners, contractors, ABN holders

Important Information

Esteb and Co provides credit assistance services. We are licensed credit representatives (ASIC Credit Rep #574070) who help you compare loan options from our panel of lenders. We do not lend money directly. All loan approvals are made by lenders, subject to their criteria and responsible lending assessments. Our service is free to you - we receive commissions from lenders. Read our Credit Guide

Why Self-Employed Borrowers Face Challenges

Banks often apply rigid PAYG-focused rules that don't reflect how business income actually works.

Common reasons self-employed applications get declined:

Income Variability

Business income fluctuates year-to-year, which banks often see as "unstable" even when the business is profitable

Tax Minimisation Structures

Good tax planning reduces taxable income, but banks assess on that lower figure - not actual cash flow

Complex Structures

Trusts, companies, partnerships - many banks don't know how to assess these properly

Limited Trading History

New businesses (under 2 years) are automatically declined by most mainstream banks

Multiple Income Streams

Diversified income sources (consulting, investments, rental) can confuse standard assessment models

Self-Employed Loan Options

Different lenders assess self-employed income differently. Here are the main options:

Full Doc Loans

Standard assessment using 2 years tax returns and financials. Best rates available.

2 years tax returns required
Company/trust financials
Competitive rates
Most lender options

Best Rates

Alt Doc / Low Doc Loans

Alternative documentation - BAS statements, accountant's letter, bank statements instead of tax returns.

6-12 months BAS statements
Accountant's declaration
Bank statement verification
Slightly higher rates

More Flexible

Add-Back Lenders

Lenders who add back depreciation, one-off expenses, and other non-cash deductions to show true income.

Depreciation added back
Interest expenses considered
One-off costs excluded
Higher borrowing power

Better Assessment

Who We Help

Our panel includes lenders experienced with various self-employed situations:

💼

Sole Traders

ABN holders, freelancers, independent consultants

🏢

Company Directors

Pty Ltd owners, shareholders, director guarantees

📋

Contractors

IT contractors, trades, professional services contractors

🏛

Trust Structures

Family trusts, discretionary trusts, unit trusts

🤝

Partnerships

Business partners, professional partnerships

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New Businesses

1-2 years trading history, start-ups with strong cash flow

How Lenders Assess Self-Employed Income

Standard Assessment (Most Banks)

Takes average of last 2 years taxable income. Problem: if you've minimised tax, this shows lower income than your actual cash flow.

Limitation: Doesn't account for add-backs, depreciation, or growth trajectory.

Add-Back Assessment (Specialist Lenders)

Takes taxable income PLUS adds back non-cash expenses like depreciation, interest, one-off costs.

Benefit: Can significantly increase your assessed income and borrowing power.

BAS/Bank Statement Assessment (Alt Doc)

Uses business turnover from BAS statements or bank deposits to calculate income. Good for businesses with strong cash flow but lower taxable income.

Note: Typically 0.5-1% higher rates, but can unlock approval where full doc fails.

Documents You May Need

Full Doc Application

2 years personal tax returns
2 years business tax returns
2 years company/trust financials
ATO Notice of Assessment
6 months business bank statements
ABN registration details

Alt Doc / Low Doc Application

Accountant's letter/declaration
6-12 months BAS statements
6-12 months business bank statements
ABN registration (12+ months)
GST registration confirmation
Business activity statement history

Frequently Asked Questions

How long do I need to be self-employed to get a home loan?

Most lenders require at least 2 years of self-employment history with tax returns. However, some specialist lenders consider applications with 12 months ABN registration and strong BAS statements. The key is demonstrating consistent income and business viability.

Can I get a loan if my taxable income is low due to deductions?

Yes, certain lenders use "add-back" assessments that add depreciation, interest expenses, and one-off costs back to your taxable income. This can significantly increase your assessed income. Alternatively, BAS-based loans assess turnover rather than taxable income.

Do I need an accountant to apply?

For full doc loans, lenders typically want to verify your financials with your accountant. For alt doc loans, you'll usually need an accountant's letter confirming your income. Having an accountant isn't mandatory, but it significantly helps the application process.

What if I have a mix of PAYG and self-employed income?

This is common and most lenders can assess combined income. The key is showing stable PAYG employment alongside the self-employed income. Some lenders may focus primarily on the PAYG portion if it's substantial enough.

Are self-employed home loan rates higher?

Full doc self-employed loans typically have the same rates as PAYG loans. Alt doc/low doc loans usually carry a premium of 0.5-1% due to the different verification method. The specific rate depends on your deposit, loan amount, and overall financial position.

Can I use my company structure to apply?

Yes, but the loan will typically be in your personal name with the company income used for serviceability. Lenders assess company profits, director's wages, and dividends differently. Some structures work better than others - we can advise on how your specific setup will be assessed.

Richard (Ricky) Esteb

Licensed Mortgage Broker & Founder

Credit Rep #574071 ACN 681 636 056 83+ Lender Panel

With direct experience helping Australians secure home loans, car finance, and business funding, Ricky founded Esteb and Co to bring transparency and technology to mortgage broking. Every piece of content is written from real-world lending experience.

Verified & Last Reviewed: December 2025 | Content meets ASIC regulatory requirements