Home Loans for Business Owners

Frequently Asked Questions by Small Business Owners

Can company profits be used for a home loan?

Yes, with some lenders. Most lenders only look at the wage and director’s fees you pay yourself. Some will also count the company’s profit, as long as you own all or most of the company.

This can make a big difference. Many business owners pay themselves a small wage and leave the rest of the profit in the company. Lenders that count company profit may also ask the company to guarantee the loan. They usually want two years of company tax returns and financial statements as well.

What if I own a business through a trust?

That’s common, and it’s fine. Lenders usually assess:

• The distributions you’ve received from the trust
• The trust’s net profit, if you control it
• Two years of trust and personal tax returns

Some lenders only count what was actually paid to you. Others will consider the trust’s full profit, which can increase your borrowing power. If the trust distributes income to other family members, the lender may only count your share.

Can retained earnings increase borrowing capacity?

Sometimes. Some lenders will count profits kept in your company, not just what you paid yourself. This usually applies when:

• You own the company outright, or have a controlling share
• The profits are consistent over two years
• The company agrees to guarantee the loan

Not all lenders offer this. For business owners who keep profits in the company for tax reasons, finding a lender that counts them can increase borrowing power significantly.

Can directors get home loans?

Yes. Directors are usually treated as self-employed, even if they pay themselves a regular wage. Lenders typically look at:

• Your personal tax returns
• Company tax returns and financial statements
• How long the business has been trading, usually at least one to two years

Some lenders also add back items such as depreciation, interest, one-off expenses and extra super contributions. These can lift the income they use for your application.

What is a family trust?

A family trust (also called a discretionary trust) is a way of holding a business or investments. A trustee, often a company, controls the trust’s assets. The trustee decides each year how to share the income between beneficiaries, usually family members.

Business owners often use family trusts for tax planning and asset protection. For lending, it means your income may come from trust distributions rather than a wage. Lenders will look at the trust’s records and how the income was shared out. Speak with your accountant about whether a trust suits your situation.

Can multiple entities affect lending?

Yes. If you have several entities, such as a company, a trust and a personal tax return, lenders often assess them together. That can work for or against you:

• Profits in one entity can help your borrowing power.
• Losses in another entity can reduce it.
• Debts in any entity you guarantee will usually count against you.
• Loans between entities, including Division 7A loans, may need explaining.

Clear, up-to-date financial statements for every entity help the lender see the full picture and avoid delays.

Are company dividends accepted as income?

Yes, in most cases. Lenders usually accept dividends if there’s a consistent history, often two years, shown in your tax returns. Some lenders also include franking credits, which can increase the income they use.

If you own the company, the lender may look past the dividends and assess the company’s profit directly. A broker can tell you which approach gives the better result for you.

Can business owners buy investment property?

Yes. Many business owners build wealth through property alongside their business. There are a few things to think about:

• Ownership: buying in your own name, a trust or a company affects tax, land tax and borrowing. Land tax can be higher for property held in a trust in some states.
• 2026 tax changes: for established homes bought after 12 May 2026, rental losses can’t be used to reduce tax on your wages from 1 July 2027. New builds keep the existing rules.
• Commercial property: some owners buy their business premises, either personally or through an SMSF. SMSF borrowing for commercial property is still allowed.

Speak with your accountant before you buy, so the ownership structure suits your long-term plans.

Can business owners refinance?

Yes. Refinancing can help business owners:

• Get a better rate
• Release equity for business growth or investing
• Combine expensive business or personal debts, including some ATO debts
• Move to a lender with more flexible self-employed policies

If your tax returns aren’t up to date, low doc refinancing may be an option. These loans use BAS statements or an accountant’s letter instead of tax returns. With four rate rises in 2026, now is a good time to check your loan is still competitive.

Why use a broker for complex lending?

Business owner lending is where lender policies differ the most. One lender might only count the wage you pay yourself. Another might count your full company profit, add back expenses and accept one year of tax returns. That difference can be hundreds of thousands of dollars in borrowing power.

A broker can:

• Match your structure (company, trust or sole trader) to the right lender
• Get your full income counted
• Work with your accountant to present your finances clearly
• Avoid applications with lenders likely to decline you
• Save you time while you run your business

For most home loans, using a broker costs you nothing, because the lender pays the broker.