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Home Loans for Self-Employed

Self Employed Home Loans

If you’re self-employed, you’ve probably already discovered that getting a home loan isn’t always as straightforward as it is for someone receiving a regular PAYG salary.

Many business owners generate strong income, maintain healthy cash flow and build successful businesses, yet find lenders focusing heavily on tax returns that may not reflect their true financial position.

At Awesome Lending Solutions, helping self-employed Australians secure finance is one of our core specialties.

Whether you’re a sole trader, freelancer, consultant, contractor, tradesperson or small business operator, we work with lenders that understand how self-employed income works and know how to assess it properly.

The reality is simple. Running a business doesn’t make you a higher-risk borrower. It just means choosing the right lender becomes even more important.

Why Self Employed Borrowers Struggle With Banks

Most self-employed Australians are encouraged by their accountant to legally minimise taxable income.

This is often achieved through:

    • Depreciation
    • Asset purchases
    • Business expenses
    • Business reinvestment
    • Trust distributions

While these strategies may reduce tax, they can also reduce the income some lenders use when calculating borrowing capacity.

As a result, many self-employed borrowers are told they cannot borrow as much as expected, despite operating profitable businesses.

That’s why lender selection matters.

1 Year ABN Home Loans

One of the biggest misconceptions in lending is that self-employed borrowers always require two years of financial statements.

While some lenders still prefer this approach, others may consider applicants with only one year of ABN history.

This can be particularly beneficial for:

    • New business owners
    • Recently self-employed professionals
    • Former PAYG employees
    • Growing businesses

Eligibility varies between lenders, but 1 Year ABN lending has created opportunities for many borrowers who previously believed they needed to wait another year before purchasing.

Low Doc and Alt Doc Home Loans

Not every self-employed borrower has up-to-date tax returns available.

Thankfully, some lenders offer alternative documentation options.

Depending on your circumstances, income may be verified through:

    • BAS statements
    • Accountant declarations
    • Business bank statements
    • Trading records
    • Alternative financial evidence

Low Doc and Alt Doc lending can be particularly useful when tax returns don’t accurately reflect the true strength of the business.

BAS-Based Servicing

BAS lending has become one of the strongest options available for self-employed borrowers.

Rather than relying solely on tax returns, some lenders can assess income using Business Activity Statements.

This may help demonstrate:

    • Business turnover
    • Trading consistency
    • Revenue trends
    • Business growth

For many borrowers, BAS servicing provides a clearer picture of their true business performance.

Accountant Declaration Loans

Your accountant understands your business better than anyone.

Certain lenders recognise this and may allow income verification through an accountant’s declaration.

These loans can be useful where:

    • Financials are not yet finalised
    • The business has recently improved
    • Income has increased significantly
    • Traditional documentation creates limitations

Every lender has different requirements, but accountant declarations can open doors that standard lending policies may close.

Depreciation Add-Backs

This is one of the most misunderstood areas of self-employed lending.

Many business owners purchase equipment, vehicles or business assets that create significant depreciation expenses.

These expenses reduce taxable income but may not reduce actual cash flow.

Some lenders allow depreciation to be added back when calculating servicing income.

The result can be significantly higher borrowing capacity.

The Real Opportunity: Using Company Profits

This is where strategic lending becomes incredibly valuable.

Many self-employed borrowers assume lenders only consider the salary they pay themselves.

That’s not always true.

Certain lenders may also consider:

    • Net company profits
    • Retained earnings
    • Director remuneration
    • Business performance
    • Distribution income

This can create dramatically different outcomes compared to lenders relying solely on PAYG-style income assessment.

Building Wealth Through Property While Self Employed

Many business owners focus heavily on growing their business and unintentionally neglect personal wealth creation.

Property can become an important component of a broader financial strategy.

Whether you’re buying:

    • Your first home
    • A family upgrade
    • An investment property
    • A long-term portfolio

The right finance structure helps preserve future borrowing capacity and flexibility.

Why Self Employed Clients Choose Awesome Lending Solutions

Self-employed lending is rarely about finding the cheapest rate.

It’s about understanding which lenders assess your income most appropriately.

We compare more than 60 lenders and understand which institutions are strongest for:

    • Trust structures
    • Company income
    • BAS lending
    • Alt Doc lending
    • One-year ABN options
    • Complex self-employed scenarios

Most importantly, we explain everything in plain English.

Frequently Asked Questions

    1. Can I get a home loan with only 1 year ABN history?
    2. What is a Low Doc home loan?
    3. What is Alt Doc lending?
    4. Can BAS statements be used instead of tax returns?
    5. Can depreciation be added back as income?
    6. Can company profits be used for servicing?
    7. Can self-employed borrowers buy investment properties?
    8. How much deposit do I need?
    9. Can I refinance while self-employed?
    10. Which lenders are best for self-employed borrowers?

 

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