Self-employed people can get a home loan in Australia, but lenders ask for more proof of income than they do for employees. Most lenders want two years of tax returns and notices of assessment for you and your business. If your paperwork is newer or incomplete, some lenders offer low doc home loans that use BAS, business bank statements or an accountant’s declaration instead, usually with a smaller maximum loan and a higher rate. Lender policies differ widely, so comparing several lenders often matters more for self-employed borrowers than for anyone else.
This guide covers the documents you need, how lenders work out your income, full doc vs low doc loans, and how to improve your chances before you apply.
Key points
- Lenders treat you as self-employed if you are a sole trader, contractor, partner, or own a meaningful share of the company that pays you. The exact threshold varies by lender.
- Full doc loans usually need two years of personal and business tax returns and notices of assessment.
- Low doc loans can work with one to two years of ABN history, BAS and bank statements, but often have stricter limits and higher costs.
- Lenders generally use your taxable income, so large deductions can reduce how much you can borrow.
- Some lenders add back certain expenses, such as depreciation or one-off costs, which is where comparing lenders helps.
Who counts as self-employed for a home loan?
Lenders usually treat you as self-employed if your income comes from a business you run or own, rather than from wages paid by an unrelated employer. That includes:
- sole traders and contractors with an ABN
- partners in a partnership
- directors or shareholders who own a significant part of the company or trust that pays them
- some commission-only workers, depending on the lender
If you are paid a wage by a company you own, many lenders will still assess you as self-employed and ask for the company’s financials as well as your own.
Documents you'll usually need
| Document | Full doc loan | Low doc loan |
| Personal tax returns and notices of assessment | Usually the last two years | Often not required |
| Business tax returns or financial statements | Usually the last two years | Often not required |
| ABN and GST registration | Yes | Yes, with a minimum history set by the lender |
| BAS statements | Sometimes, to show recent trading | Commonly 6 to 12 months |
| Business bank statements | Sometimes | Commonly 6 to 12 months |
| Accountant’s letter or declaration | Sometimes | Often, confirming your income |
| ID, savings history, existing debts | Yes | Yes |
Requirements differ between lenders, so treat this as a checklist to start gathering, not a fixed rule. Having your tax returns lodged and up to date is the single biggest help.
How lenders work out your income
Most lenders start with your taxable income from your tax returns. If your income has gone up, some will use the latest year; if it has fallen, many will use the lower figure or an average of the two years.
Some lenders also add back certain expenses that reduced your taxable income but don’t reflect your real ability to repay, such as:
- depreciation
- interest on business loans that will be paid out or refinanced
- one-off or non-recurring expenses
- extra superannuation contributions above the required amount
Which add-backs a lender accepts can make a real difference to how much you can borrow. This is one of the main reasons self-employed borrowers benefit from comparing lenders or using a mortgage broker.
Full doc vs low doc home loans
| Full doc | Low doc | |
| Income proof | Tax returns and notices of assessment | BAS, bank statements or accountant’s declaration |
| Typically suits | Established businesses with lodged returns | Newer businesses, or returns not yet lodged |
| Interest rate | Usually standard rates | Usually higher |
| Maximum loan size compared with property value | Standard limits | Usually lower, so a larger deposit is needed |
| Lenders offering it | Most banks and non-banks | Mainly non-bank and specialist lenders |
Low doc loans still have to meet responsible lending rules, so the lender must be satisfied the loan is affordable for you. “Low doc” means different documents, not no checks. Many borrowers use a low doc loan for a few years, then refinance to a full doc loan once their tax returns are lodged. See our refinancing page for how that works.
Can you get a home loan with less than two years self-employed?
Often, yes. Some lenders accept one year of tax returns, or a shorter ABN history, particularly if you work in the same industry you were employed in before. For example, an electrician who moves from wages to contracting may be assessed more favourably than someone starting in a new field. A low doc loan is another option for very new businesses, depending on the lender.
How to improve your chances of approval
- Lodge your tax returns on time. Recent, lodged returns open up more lenders and better rates.
- Talk to your accountant early. Claiming every possible deduction lowers your tax, but also lowers the income a lender sees. Plan the timing of a home loan with your accountant.
- Keep business and personal finances separate. Clean bank statements are easier to assess.
- Pay down or close unused credit. Lenders count credit card limits, not just balances.
- Keep ATO debts under control. Lenders check for tax debts and payment arrangements.
- Avoid several applications at once. Each one is recorded on your credit file.
- Save a larger deposit if you can. It widens your options, especially for low doc loans.
Can self-employed buyers use first home buyer schemes?
Yes. Being self-employed doesn’t rule you out of first home buyer grants, stamp duty concessions or the federal Home Guarantee Scheme, but you must meet each scheme’s own eligibility rules, and participating lenders still assess your income in the usual way. Check current criteria with Housing Australia and your state revenue office, or see our first home buyers page.
Why use a mortgage broker if you're self-employed?
Self-employed lending policy varies more between lenders than almost any other area. One lender may use your lower year of income, another your latest year; one may accept add-backs that another ignores. A broker can match your documents and income to lenders whose policy fits before you apply, which helps avoid unnecessary credit enquiries.
We help self-employed borrowers with home loans, investment loans and refinancing. If you’re local, see our mortgage broker in Dandenong or mortgage broker in Werribee pages. Need funding for the business itself? See business loans.
Self-employed home loan FAQs
Yes. Most lenders offer home loans to self-employed borrowers. You'll usually need two years of tax returns, or alternative documents for a low doc loan.
Most lenders ask for two years of personal and business tax returns. Some accept one year, particularly if you have experience in the same industry.
A home loan for self-employed borrowers who can't provide full tax returns. The lender uses other evidence of income, such as BAS, business bank statements or an accountant's declaration. Rates are usually higher and loan limits lower.
Usually your taxable income, plus any add-backs the lender accepts, such as depreciation or one-off expenses.
Possibly. Some lenders will consider it if the debt is on a formal payment arrangement and up to date, while others won't. Disclose it upfront so it can be matched to a suitable lender.
Brokers are usually paid a commission by the lender. If a broker charges a fee, they must tell you before providing the service. Ask any broker how they're paid.
This article is general information only and does not consider your objectives, financial situation or needs. It isn’t financial, tax or legal advice. Lender criteria change and vary between lenders. Speak to a licensed professional and your accountant before acting.
Self-employed and planning to buy or refinance? Talk to us about lenders whose policies suit your income.
