Self-Employed
The self-employed home loan guide
8 min read · By Jamee White, CPA · 30 May 2026
The short version
- Self-employed borrowers can absolutely get competitive loans — with the right lender and prep.
- Full-doc, one-year and low-doc pathways exist for different situations.
- Clean books and separated personal/business finances make everything easier.
- Timing your application around your tax returns and BAS matters.
Self-employment shouldn't be a barrier to a good home loan — but plenty of business owners get knocked back by the wrong lender and assume the whole market feels the same way. It doesn't. The trick is understanding how lenders read a business owner's income and lining up the right one.
The three main pathways
- Full-doc (two years): The standard route — two years of tax returns and financials, often the sharpest pricing.
- Full-doc (one year): Some lenders accept a single year for established or growing businesses, useful if last year was strong.
- Low-doc: Income verified by BAS, bank statements or an accountant's declaration when full returns aren't available or don't reflect current earnings.
How lenders assess your income
Lenders look at your net profit and, for company structures, add director's wages, dividends and sometimes retained earnings. They commonly average two years and apply 'add-backs' (like depreciation) that can lift your assessable income. The structure of your business — sole trader, company, trust — changes how this is read.
How to prepare
- Keep personal and business banking separate — it makes assessment cleaner and faster.
- Stay on top of your tax lodgements; out-of-date returns limit your options.
- Avoid big one-off write-downs in the year you plan to borrow, where commercially sensible.
- Get your accountant and broker talking early — small structuring choices have big effects.
- Apply to the right lender first time to avoid unnecessary credit enquiries.
We work alongside your accountant to present your income in the strongest legitimate light and match you to a lender whose policy suits your structure. This is general information, not tax advice — your accountant remains your guide on tax matters.
Run the numbers
Frequently asked questions
Can I get a home loan if I've only been self-employed for one year?
Possibly. Some lenders accept one year of returns, particularly if you have prior experience in the same field or a strong year. Low-doc options may also help. Less than a year is harder but not always impossible with the right lender.
Do self-employed borrowers pay higher interest rates?
Not automatically. Full-doc self-employed borrowers often access the same rates as everyone else. Low-doc loans can carry slightly different pricing because of how income is verified, but a strong file with the right lender remains competitive.
Will my company's retained profits count as income?
Some lenders include retained earnings or net company profit in your assessable income, which can significantly boost borrowing power. This varies by lender and is a key reason lender selection matters for business owners.
