“The bank used my taxable income, not what the business really makes.”
Some lenders add back depreciation, one-off costs and interest on debts you’re refinancing, which can lift the income they assess.
Self-employed home loans in ParramattaYour tax return says you earn less than you do.
Lenders read self-employed income in different ways, and the first bank's answer isn't the only one. We check 30+ lenders' rules to find the ones that fit how your business actually earns, so you can buy the home you want to live in or invest in.
30+ LendersNo Cost to You5.0 on Google, 100+ ReviewsLevel 49, 8 Parramatta Square
Sound familiar?
One bank's no isn't every lender's no.
“I’ve only got one year of tax returns.”
Not every lender needs two. Some will look at one year of returns with a recent notice of assessment.
“I pay myself a small wage and leave the profit in the company.”
Some lenders can count profit kept in a company or paid out by a trust, depending on the structure and your share of it.
“Last year’s returns aren’t lodged yet.”
Low doc loans use BAS, business bank statements or an accountant’s declaration instead. They cost more, so we weigh that up with you.
Who we help
- Sole traders and tradies
- Company directors
- Trusts and partnerships
- Contractors on an ABN
- Medical, legal and accounting professionals
- Businesses under two years old
How lenders see you
How lenders assess self-employed income
Every lender has its own policy for business owners. These four questions decide most of the result.
How long you’ve been trading
Many lenders want two years of ABN registration and tax returns. Some will consider one year of returns, and specialist lenders may consider less, usually with a larger deposit or a higher rate.
Which year of income they use
Some lenders average your last two years. Others use the most recent year if your income is rising. If it has dropped, expect the lower figure.
What they add back
Depending on the lender, items such as depreciation, interest on loans being refinanced, one-off expenses and super above the compulsory amount can be added back to your income.
Profit kept in the business
Some lenders count profit retained in your company or distributed by your trust. Each has its own rules about structure and ownership.
Your options
Full doc or low doc?
Full doc
- What the lender uses
- Personal and business tax returns, ATO notices of assessment and financial statements.
- Suits
- Business owners whose returns are lodged and up to date.
- What to expect
- The widest choice of lenders, standard rates and features.
Low doc (alt doc)
- What the lender uses
- BAS, business bank statements or an accountant’s declaration instead of tax returns.
- Suits
- Owners whose returns are behind, or whose recent income isn’t in them yet.
- What to expect
- Fewer lenders, usually a higher rate and a bigger deposit. Many borrowers refinance to a full doc loan later.
Low doc loans cost more, so we only recommend one when it genuinely suits your situation, and we'll show you the full doc alternative side by side.
Hassan Arif JP
Mortgage & Finance Broker
Your broker
A broker who reads business financials.
Hassan has a background in tax and accounting, so he reads your returns and financial statements the way a credit assessor will, before any lender sees them. You deal with him from the first call to settlement.
- Goes through your tax returns and financials line by line
- Access to 30+ lenders, including non-bank lenders
- Meet at Parramatta Square, or by phone and video
- Available after hours and on weekends
- Fluent in English and Arabic
Tax questions, such as how to structure your business or when to lodge, are for your accountant. We're happy to work alongside them.
Get ready
Documents to have ready
You
- Photo ID
- Last two years’ personal tax returns and ATO notices of assessment
- Recent statements for savings, loans and credit cards
Your business
- ABN, and GST registration if you have it
- Last two years’ business tax returns and financial statements (company or trust)
- Recent BAS
- ATO account statement and payment plan, if you have tax debt
- Your accountant’s contact details
Every lender's list is a little different. We confirm exactly what yours needs after the first call.
Before you apply
Five things to avoid
- 1
Restructuring right before you apply
Moving from sole trader to a company or trust can reset some lenders’ trading-history clock. Talk to us and your accountant first.
- 2
Applying at several banks yourself
Every application shows on your credit file. We pick the right lender before anything is lodged.
- 3
Lodging returns and BAS late
Lenders want them lodged and current. Late lodgement narrows your options.
- 4
Leaving ATO debt unmanaged
Tax debt on a payment plan with repayments up to date is often workable. Unmanaged debt is much harder.
- 5
Taking on new finance first
A new car loan or credit card just before you apply reduces how much you can borrow.
The process
From first call to the keys
1
15-minute call
Tell us what you want to buy, how your business is set up and what you’ve lodged.
2
We read your numbers
We go through your returns, financials and credit the way a lender will, and work out a realistic borrowing range.
3
We shortlist lenders
Only lenders whose self-employed rules fit you, with rates, fees and trade-offs explained.
4
Application to settlement
We prepare and lodge the application, deal with the lender and keep you, and your accountant, updated.
Local to Parramatta
A mortgage broker for Western Sydney's business owners
We're on Level 49 of 8 Parramatta Square, Parramatta NSW 2150, open Monday to Friday, 9:00 to 5:30. We help self-employed buyers across Parramatta, Harris Park, Westmead, North Parramatta, Granville, Merrylands, Wentworthville, Rydalmere, Ermington, Toongabbie, Baulkham Hills, Castle Hill and Blacktown, and right across Western Sydney. Can't make it in? We work by phone and video anywhere in NSW.
Common questions
Self-employed home loan FAQs
Can I get a home loan if I’m self-employed?
Yes. Lenders lend to sole traders, company directors and trust beneficiaries every day. The difference is how they work out your income, and their rules vary a lot from one lender to the next. That’s why comparing lenders matters more when you’re self-employed.
How long do I need to be self-employed to get a home loan?
Many lenders want two years of ABN registration and tax returns. Some will consider one year of returns, and some specialist lenders will consider a shorter trading history, usually with a larger deposit or a higher rate. If you worked in the same industry as an employee before going out on your own, some lenders take that into account.
Can I get a home loan with one year of tax returns?
Sometimes. Some lenders accept one year of personal and business returns, usually with a recent ATO notice of assessment. The loan size and deposit needed can differ, so we check which lenders fit your figures before anything is lodged.
What is a low doc home loan?
A low doc (or alt doc) loan uses other evidence of income, such as BAS, business bank statements or an accountant’s declaration, instead of full tax returns. These loans usually have a higher interest rate and need a bigger deposit. They can suit owners whose returns are behind, and many borrowers refinance to a standard loan once their returns are up to date.
My accountant keeps my taxable income low. Will that reduce what I can borrow?
It can, because most lenders start from the income in your tax returns. Some lenders add back items such as depreciation, interest on debts you’re refinancing and one-off expenses, which can lift the income they assess. How you report income is a tax decision, so talk to your accountant before changing anything.
How much deposit do I need?
It depends on the lender and the type of loan. With full documents, some lenders will lend more than 80% of the property value with lenders mortgage insurance (LMI). Low doc loans usually need a larger deposit. Government schemes for first home buyers are open to self-employed people too, and we’ll check whether you’re eligible.
I have an ATO debt. Can I still get a home loan?
Often, if the debt is on a payment plan and the repayments are up to date. Lenders will ask for your ATO statement and the plan. A tax debt with no arrangement in place makes it much harder.
Does it cost anything to use Frontline Financial?
No. Our broking service is free to you as the borrower. The lender pays us a commission once your loan settles, and we disclose it in our credit guide.
Will talking to you affect my credit score?
No. A conversation and assessment with us doesn’t lodge anything with a lender. Applications are what show on your credit file, which is why we choose the right lender first instead of trying several.
Self-employed and ready to buy?
Book a free, no-obligation assessment. Bring your last two years of returns if you have them, or just call and tell us where things are at.
General information only. This page doesn't take into account your objectives, financial situation or needs. Lender criteria, fees and charges apply, and all applications are subject to the lender's assessment and approval. For tax advice, speak with your accountant.
Frontline Financial Pty Ltd is an authorised credit representative (CRN: 575968) of Australian Credit Licence No. 389087, authorised to engage in credit activities.