Being your own boss is incredibly rewarding – the freedom, the flexibility, and the ability to build something that’s truly yours. But when it comes to applying for a loan to buy your dream home, being self-employed can sometimes make the process feel a little different.
If you’re a freelancer, small business owner, contractor, or entrepreneur, you may have already heard that getting a self-employed home loan can be tricky. The good news? It’s not necessarily harder — just different. With the right preparation and support, securing home loans for the self-made professional is absolutely possible.
In this guide, we’ll walk you through how home lending specialists assess income, what documents you’ll need, options like low-document home loans, and why choosing the right lender makes all the difference.
Understanding How Lenders View Self-Employed Income
Lenders look at one thing above all else: your ability to repay the loan. But if you’re self-employed, your income may not follow the same predictable pattern as someone in a PAYG (pay-as-you-go) role. That doesn’t mean you’re less qualified, it just means your financial story needs to be told a little differently.
Most mortgage providers will assess your income based on the last two years of financial performance. They’re looking for stability and consistency, even if your income fluctuates month-to-month.
Common documents used to assess self-made professional income include:
- Personal and business tax returns (1–2 years)
- Profit and loss statements
- Business Activity Statements (BAS)
- ATO Notices of Assessment
- Business bank statements
If you pay yourself a regular salary from your self-employed business, some lenders may even offer streamlined income verification policies.
Documentation is Key for a Self-Employed Home Loan Application
When it comes to the home loan application process for self-employed people, one thing is crystal clear: paperwork matters.
Having accurate, up-to-date, and well-organised business financial records is essential. Not only does it make your application stronger, but it also shows property loan providers that you run a financially sound self-employed business.
If you’re planning to apply for a new home loan, whether it’s for your first home or next home, having the right documents on hand can make a significant difference in your chance of getting your loan approved.
Lenders typically assess your income over at least one financial year, so it’s important to have consistent and verifiable records that reflect your business’s profitability.
Here’s what you should be ready to provide:
- Personal tax returns and ATO Notices of Assessment
- Business financial statements prepared by your accountant
- BAS and/or business bank statements (6–12 months)
- ABN or ACN registration details
- Evidence of ongoing contracts or recurring income (if applicable)
The more transparent your documentation, the easier it is for a lender to understand your financial health, and approve your self-employed home loan.
Exploring Low-Document Home Loan Options for Business Owners
What if your paperwork isn’t quite in order? Maybe you’ve only just started your own business, or you’ve been self-employed for less than two years. That’s where low-document home loans (or “low doc” loans) come in.
These home loans for self-employed borrowers are designed for applicants who can’t provide the full suite of traditional financial documents to verify income. Instead, you may be able to confirm your financial situation using:
- BAS or bank statements
- An accountant’s letter
- A signed income declaration
While low-doc loans can be helpful, they may include:
- Higher interest rates (vs. a standard variable rate)
- Lower borrowing limits
- Stricter loan to value ratio requirements
- Fewer fixed rate loan or interest only loans options
These are best suited for applicants with:
- A strong credit history
- A sizeable deposit
- The ability to meet repayments
Before choosing a low doc or variable rate loan, speak with a home loan expert to understand your options and find the right product for your needs.
Not All Lenders Are the Same
Here’s something many self-employed people don’t realise: not all lenders treat self-employed income the same way.
Some banks prefer neat, straightforward income profiles and may decline an application that doesn’t tick every traditional box, especially when your tax returns don’t reflect the full picture of your earnings. Others, including many non-bank and specialist lenders, are more flexible and experienced in working with freelancers, business owners, and contractors.
That’s why it’s so important to shop around or work with a broker who understands the self-made professional or entrepreneur home loans space. A good expert can match you with mortgage providers who are more likely to say “yes” to your unique situation.
Whether you’re applying as a sole trader or through a company structure, the right guidance can make it easier to apply for a home loan, clarify the maximum loan amount you qualify for, and ensure your financial documentation, like tax returns, BAS statements, or bank records, is presented correctly.
Frequently Asked Questions
Can I Get a Home Loan if I’m Self-Employed?
Absolutely. As long as you meet the eligibility criteria and can demonstrate steady income, being self-employed should not stop you from qualifying for a secured loan.
How Long Is the Application Process?
It depends on your lender and how organised your documents are, but most applications take between 2 to 4 weeks from submission to approval.
What if I’ve Been Self-Employed for Less Than 2 Years?
Some lenders will still consider your application, especially if you were previously employed in the same industry. You may need to provide extra documents, such as BAS or bank statements.
Who Is Considered a Self-Employed Borrower?
Anyone earning income through a business, contract, or freelance arrangement, including sole traders, company directors, and people operating under a trust or partnership.
Final Thoughts: Let’s Talk About What Might Work for You
Getting a home loan when you’re self-employed isn’t out of reach. With the right documents, guidance, and support, you can go from confusion to clarity — and from application to approval.
At Clear Path Financial Group, we help self-employed Australians navigate the mortgage journey every day. We speak your language, cut through the jargon, and help you find the home loan that fits your life — not the other way around.
Ready to explore your options? Let’s chat.