HOME LOANS WHEN YOU WORK FOR YOURSELF
Working for yourself can mean income comes through business profits, drawings, wages or distributions. Lenders need to understand that income, its consistency and your commitments, using documents appropriate to your business structure.
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We work through your business structure, your available financials and your goals, then compare lenders whose documentation and assessment approach suits your position — including alternative documentation options where full financials are not yet available.
HOME LENDING FOR SELF-EMPLOYED BORROWERS
Sole Traders and Contractors
Income from a business you run yourself, including ABN contractors. We look at how your income is recorded and which lenders assess it in a way that reflects how you actually work.
Company and Trust Structures
Where income flows through a company or trust, lenders look at the entity’s financials as well as your personal position. We map the structure before the comparison starts.
Full-Doc Self-Employed Loans
Standard documentation may include personal and business tax returns, financial statements and notices of assessment. The period required varies by lender and circumstances. We compare how suitable lenders assess your income and supporting records.
Alternative Documentation
Where full financials are not available or not current, some lenders accept other evidence of income. The lender still assesses affordability in full; the difference is the documents used to show income.
Buying, Refinancing or Releasing Equity
We review options for purchasing a home or investment property, refinancing, or accessing available equity. The purpose of any additional borrowing affects the assessment and available structures. Using your property as security places it at risk if repayments are not met.
Newly Self-Employed
A short trading history narrows the lender options but does not always close them. We consider lenders whose policy allows for a shorter period, and what evidence they need.
WHAT SHAPES A SELF-EMPLOYED ASSESSMENT
Lenders take different approaches to self-employed income. These are the factors most likely to determine which lenders will consider your application and how it is assessed.
Trading History
Lenders consider how long the business has operated and the evidence available to support its income. Minimum trading periods vary. The length of trading history required may differ from the period covered by the financial documents requested.
How Income Is Evidenced
Tax returns, financial statements, notices of assessment, business activity statements, accountant’s letters and business bank statements each carry different weight with different lenders.
Income Consistency and Trend
Lenders look at whether income is stable, rising or falling across the period, and how they average or weight it. A strong recent year is not always taken at face value.
Add-Backs and Expenses
Some business expenses, such as depreciation or one-off costs, may be added back to income by some lenders. Which add-backs are accepted varies and affects the assessment.
Business and Personal Commitments
Business loans, equipment finance, tax liabilities and personal commitments are all considered against the proposed repayments.
Deposit, Equity and Security
The deposit or equity available and the property offered as security affect the lender options, and can affect whether lenders mortgage insurance applies.
HOW WE APPROACH SELF-EMPLOYED LENDING
01
Understand the Business and the Goal
We establish how you are set up, what you earn and how it is recorded, what you owe, and what the loan is for, so the comparison starts from your actual position.
02
Match the Documentation to Suitable Lenders
We identify the lenders whose documentation requirements and assessment approach fit the evidence you can provide, then compare structure, term and conditions.
03
Prepare, Lodge and Manage
We prepare the application with your accountant’s input where relevant, manage lender questions and keep you informed through to settlement, subject to the lender’s assessment.
WE ARRANGE THE LENDING, NOT THE ACCOUNTS
Direct Broker Access
Christian leads your lending review, supported by the AGFB team through document collection and the application process.
Working With Your Accountant
Where financials, add-backs or structures need explanation, we work alongside your accountant. Tax and structuring advice remains theirs; the lending side is ours.
Straight About Documentation
We explain the documents required for each potential option and identify gaps early. Alternative documentation changes the evidence a lender may accept; it does not remove affordability checks or guarantee approval. Further information may be requested during assessment.
THE LOAN PURPOSE MAY POINT TO ANOTHER PAGE
Self-employed borrowers use home lending for the same purposes as anyone else. If you are reviewing an existing loan, our Refinancing page covers that process; if you are buying an investment property, our Investment Loans page covers the considerations involved.
COMMON QUESTIONS FROM SELF-EMPLOYED BORROWERS
What is an alt doc home loan?
An alternative documentation loan is one where the lender accepts evidence of income other than full tax returns and financial statements — commonly a combination of business activity statements, business bank statements or an accountant’s declaration. It changes the documents used to show income; it does not remove the lender’s assessment of whether the loan is affordable, and each application remains subject to the lender’s credit criteria.
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Do I need two years of financials?
Not always. Some lenders accept one year of financial documents for eligible applicants, while others require a longer period. Trading-history requirements are a separate consideration. Alternative documentation may also be available, depending on your circumstances and lender criteria. We check the requirements against the records you have.
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How do lenders calculate self-employed income?
Approaches vary. Some average the last two years, some weight the most recent year, and some apply limits where income has risen sharply. Certain business expenses may be added back by some lenders. Because the method changes the amount a lender will consider, we compare how each lender option treats your figures rather than assuming one approach.
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Does a company or trust structure make it harder?
Not necessarily, but it changes the documents. Lenders generally want the entity’s financials and tax returns alongside your personal position, and may look at how profit is distributed. We map the structure and the paperwork early so the application goes to lenders that understand it.
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Can I refinance or release equity while self-employed?
Yes, subject to lender assessment. Refinancing and equity release are assessed on the same income and documentation principles as a purchase, with the purpose of the funds also considered. Where the release is for business use, some lenders apply different conditions.
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What documents will I need?
Depending on the lender and your business structure, documents may include personal and business tax returns, financial statements, notices of assessment, identification, bank statements and details of existing commitments. Alternative documentation may include business activity statements, business bank statements or a lender-specific accountant’s declaration. We confirm the required combination and period for each option.