Client story · First home buyer
Getting a Self-Employed Buyer Approved After the Bank Said No
He runs a small business, works hard, and earns well. His own bank still said no, because a branch lender didn't know how to read a self-employed income. That is a fixable problem.
1 year
of financials accepted
Declined
then approved elsewhere
Add-backs
used to show true income
Why the bank said no
He had been self-employed for a couple of years and the business was going well. But when he walked into his own bank, the number they used for his income was far lower than what he actually earns. Self-employed income gets reduced on paper by things like depreciation and one-off expenses. A lot of lenders simply take the bottom line of the tax return and stop there. That is how a genuinely strong borrower gets a flat no.
The frustrating part is that nothing was wrong with him or his business. He just needed a lender who understands self-employed income and someone to present it properly.
What I did differently
- Read his financials properly and identified the legitimate add-backs, like depreciation and one-off costs, that lift his assessable income closer to reality.
- Chose a lender comfortable with self-employed applicants and, in his case, one year of returns rather than demanding two.
- Packaged the application so the lender saw a clear, honest picture up front instead of raising questions later.
- Set expectations at each step, because being knocked back once makes the next attempt nerve-racking.
The result
Same person, same business, same income. A different lender and a properly presented application, and he was approved to buy his first home in the Sutherland Shire at around $780,000. The lesson I want people to take from this is simple: one no from one bank is not the end. It often just means you were sitting in front of the wrong lender.
If you're self-employed and thinking about buying, a few habits make life much easier when it comes time to apply. Keep your tax returns up to date rather than lodging late, keep your business and personal spending in separate accounts, and try not to run every expense through the business right before you want to borrow, because a lower taxable income can also mean a lower borrowing capacity. Small things, but they shape how a lender sees you. If your books are a bit messy, that's fine, we work with what you've got and match you to a lender that fits.
Being self-employed is not a dealbreaker
With more than 40 lenders on my panel, there is usually one that reads your income the way it should be read. If your bank has said no, that is a starting point, not a verdict. See how I help first home buyers.
My own bank made me feel like a bad risk. Victor showed me I was never the problem, the lender was.
Frequently asked questions
How long do I need to be self-employed to get a home loan?
Many lenders want two years of financials, but some accept one year, or other proof of income, in the right circumstances. It comes down to matching you to the correct lender. Have a chat with me and I'll tell you where you stand.
My bank declined me. Can a broker still help?
Often, yes. A decline from one lender doesn't mean every lender will say no. Policies differ a lot between banks, and finding the right fit is exactly what I do.
Important information
This information is general in nature and does not take your personal objectives, financial situation, or needs into account. It is not credit assistance or a recommendation to enter into any particular credit contract. Consider whether it is right for you and seek advice before acting. Lending is subject to a lender's eligibility and approval criteria. Terms, conditions, fees, and charges apply. Client details are shared with permission and may be anonymised. Individual results depend on your circumstances.
Greenwood Finance · ABN 23 671 049 693 · Credit Representative No. 551942.
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