Guide · Loan basics
Self-Employed Home Loans: What Documents You Actually Need
Being self-employed doesn't mean you can't get a sharp home loan. It just means the paperwork is different, and the lender you choose matters more. Here's exactly what's needed, how lenders read your income, and what to do if your latest year looks stronger than your last.
When you work for yourself, lenders can't just take a couple of payslips and call it done. They need to see that your business income is steady and genuine, so they look at your tax returns and financials over a period. It sounds like more of a hassle, and it is a bit, but plenty of self-employed people get excellent loans every day. The trick is knowing what to prepare and picking a lender whose policy fits how you actually earn.
The standard documents
For a full-documentation loan, which usually gets you the sharpest pricing, most lenders want to see the last one to two years of the following. If you've been trading a while and your income is consistent, this is the path to aim for.
- Your personal tax returns and ATO notices of assessment, usually for the last two years.
- Your business tax returns and financial statements (profit and loss, balance sheet).
- Business bank statements, and sometimes BAS statements.
- Details of any business debts, plus your usual ID and personal bank statements.
- If you trade through a company or trust, the financials for those entities too.
How lenders read your income
This is where a broker earns their keep. Lenders often take an average of your last two years, but if your most recent year is higher, some lenders will use that latest figure instead, which can lift your borrowing power meaningfully. They also add back certain expenses, like depreciation and one-off costs, that reduce your taxable income on paper but aren't really cash out the door. Different lenders add back different things, so the same tax returns can produce quite different assessments depending on where you apply.
Your accountant and I should compare notes
You spend the year minimising your taxable income, which is smart for tax but can work against you when you borrow. A quick chat between me and your accountant before you apply can make sure your financials tell the right story to a lender without you overpaying tax. Timing an application after a strong year lodges can also help.
If your paperwork is light: alt-doc loans
If you haven't been trading two full years, or your returns aren't finalised yet, there are alternative-documentation (alt-doc) loans. Instead of full tax returns, these rely on other evidence of income, such as BAS statements, business bank statements or an accountant's declaration. They usually come with a slightly higher rate and often need a larger deposit, but they're a genuine path for newer businesses or people between tax lodgements. They're not a shortcut around proving income, just a different way to prove it.
Newly self-employed? Don't assume you have to wait
A lot of people think they need two full years of returns before they can even try. Not always true. Some lenders consider borrowers with as little as one year of trading, especially in a field where you have prior experience. It's worth a conversation rather than assuming the door is closed for another year.
Self-employed lending is one of those areas where the lender you choose changes the outcome more than almost anything else. Two lenders can look at identical financials and land on very different numbers. Getting that match right is the core of what I do, so before you gather a mountain of paperwork, have a chat with me and we'll target the right one. It also pays to understand your borrowing power and get pre-approval lined up.
Self-employed and thinking about buying?
Send me your situation and I'll tell you which documents you need and which lenders suit how you earn.
Frequently asked questions
How many years of accounts do I need to get a home loan when self-employed?
Traditionally two years of tax returns and financials for a full-doc loan, which usually gets the sharpest pricing. But some lenders accept one year, and alt-doc loans use other evidence like BAS or bank statements for newer businesses. How long you've been trading and the strength of your income both matter, so it's worth checking rather than assuming.
Can I get a home loan if I've only been self-employed for one year?
Often, yes. Some lenders consider borrowers with just one year of trading, particularly if you have experience in the same field from before. Alt-doc loans can also help if your returns aren't finalised. The rate and deposit may differ from a full-doc loan, so it's about finding the lender whose policy fits your circumstances.
Do self-employed borrowers pay higher interest rates?
Not necessarily. If you can provide full documentation and your income is steady, you can access the same sharp pricing as anyone else. Higher rates tend to come with alt-doc loans, where you're proving income a different way. The goal is usually to qualify for a full-doc loan if your paperwork supports it.
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.
Greenwood Finance · ABN 23 671 049 693 · Credit Representative No. 551942.
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