Residential Finance for Self-Employed Applicants
Being your own boss comes with plenty of rewards — flexibility, independence, and control. But when it comes to applying for a Home Loan, Self-Employed applicants often find that the process looks quite different compared to our PAYG friends. If you run a business, working as a Sole Trader (or Contractor) or Company Director, lenders need to dig a little deeper to understand your income.
1. Why the Process Is Different
PAYG employees can usually provide a couple of recent payslips and a payment summary to show stable income. For Business Owners, income tends to fluctuate — which makes lenders look at the overall financial health of your business rather than a single figure.
Lenders want to see consistency and sustainability of income, and whether your business can continue to support your loan repayments in the long term.
2. What Lenders Look For
When you’re self-employed, lenders usually review:
Two years of Personal Tax Returns & Notices of Assessment
Two years of Business Tax Returns and Financials (Profit & Loss and Balance Sheets)
Business Activity Statements (BAS) or interim financials, if the latest tax year isn’t complete
Business Tax Portals to confirm that Tax obligations are up to date
Most lenders need two years of trading history for Self-Employed applicants, however some will consider after 18 months operating.
Most lenders will also consider add-backs — one-off business expenses or non-recurring costs — to give a clearer picture of your true earnings.
3. Common Challenges for Self-Employed Borrowers
Even successful business owners can face hurdles, such as:
Lower declared taxable income (due to deductions)
Recent business changes or growth phases
Difficulty demonstrating consistent cash flow
4. How to Strengthen Your Application
If you’re planning to apply for residential finance, it helps to:
Keep your business financials up to date
Work with your accountant before applying
Prepare explanations for any income fluctuations
Reduce unnecessary business debt or expenses
Often, taxable income doesn’t reflect the full income available for Self-Employed applicants. Working with a Finance Broker experienced with Self-Employed clients can help present your financials and full picture of your Business to lenders. Every business tells a story — the role of a Finance Broker is to help yours make sense to the lender.
Applying for a home loan as a Business Owner might mean a few extra steps, but with the right preparation and support, it’s absolutely achievable. Whether you’re buying your first home or upgrading your family property, I can help you structure your finance in a way that fits both your business and personal goals.
Helping business owners across Torquay, Geelong and the Surf Coast secure residential finance that makes sense for their lifestyle and business structure.