Home loans · Trades
Home Loans for Tradies
If you are a tradie running your own ABN, your tax return probably makes you look poorer than you are. That is the whole challenge with a self-employed home loan. My job is to show a lender your real earning capacity, not the low figure at the bottom of your return.
You have spent years minimising your taxable income, and now a lender wants to use that same low figure to decide what you can borrow. The good news is that with the right lender and the right presentation, it does not have to work that way.
The real income problem
Say you turn over $250,000 through the business. After materials, the ute, tools, super and every other legitimate deduction, your taxable income might read $80,000. A generalist lender takes that $80,000 at face value. A broker who knows self-employed lending adds back the parts that are not really ongoing personal costs, and presents a much stronger figure.
Add-backs that can lift your number
- Depreciation on vehicles and equipment, which is a paper cost, not cash out the door.
- One-off or non-recurring expenses that will not repeat every year.
- Additional super contributions above the compulsory amount, in some cases.
- Interest on debts that are being refinanced or cleared, depending on the lender.
This is where a broker earns their keep
Two lenders can look at the same tax returns and land on assessed incomes tens of thousands apart, purely on how they treat add-backs. Presenting your financials to the lender who counts the most is a big part of what I do for tradies.
Low doc and short trading history
Most lenders want to see two years of ABN activity and GST registration, which usually starts once you turn over $75,000. If you have less history, do not assume you are out. Some non-bank lenders will consider a shorter track record, often around 12 months and sometimes less, usually with a larger deposit and evidence of prior experience in the trade. There are also low doc options that lean on your BAS, business bank statements or an accountant's declaration when full financials are not available.
First home buyer, upgrading, or building your own place, the same principles apply. If it is your first, start with first home buyer support, and get a feel for the numbers using how much can I borrow.
Let's show them what you really earn
Bring your last two years of financials and I'll find the lender that counts the most of your income. Free call, no obligation.
Frequently asked questions
Can I get a home loan if my tax return shows a low income?
Usually yes. Self-employed income is about more than the taxable figure. Legitimate add-backs and the right lender can lift your assessed income significantly. That is exactly what I sort out for tradies.
How long do I need my ABN before I can borrow?
Many lenders want two years. Some non-bank lenders will consider around 12 months, and occasionally less, usually with a larger deposit and proof of experience in your trade. Book a call to see where you stand.
What is a low doc loan?
It is for borrowers who cannot provide standard payslips or full tax returns. Lenders accept alternatives like BAS, business bank statements or an accountant's declaration. Terms differ, so it pays to compare.
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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