SELF-EMPLOYED · EAST MONEY GUIDE
Home loans for self-employed borrowers
Self-employed lending is less about fitting income into a payslip and more about showing how the business produces sustainable personal income. Clear accounts and a concise explanation make lender comparison more useful.
Reviewed September 2026 · General information
Map the business and personal structure
Identify trading entities, ownership, director roles, trusts, wages and distributions. The lender needs to understand how business earnings reach the borrower and which entities carry debt.
Prepare both historical and current evidence
Tax returns and financial statements are common starting points. Recent management accounts, BAS and bank statements may help explain how current trading compares with lodged results.
- Personal and business tax returns
- Financial statements and notices of assessment
- Current management figures or BAS where relevant
- Business and personal bank statements
Explain material changes
Growth, a one-off expense, a new contract or a temporary downturn needs context and evidence. A short explanation should reconcile with the documents rather than replace them.
Add-backs are policy dependent
Some non-cash or one-off items may be treated differently by lenders, but they are not automatically accepted. The business must still support the proposed debt after all ongoing commitments.
Choose timing and lender carefully
The latest lodged year, business age and the direction of earnings can affect available options. Review the position before a purchase deadline so that evidence gaps can be addressed.
QUESTIONS PEOPLE OFTEN ASK
Useful points to clarify early.
Do I always need two years of financials?
Requirements vary. Some lenders may consider a shorter history or alternative evidence, but the income still needs reasonable verification.
Can depreciation or one-off costs be added back?
Some items may be considered under lender policy. Each amount needs to be identifiable, supported and genuinely non-recurring or non-cash.
Should I reduce taxable income before applying?
Tax decisions require tax advice and can affect borrowing evidence. Discuss future lending plans with your accountant and broker before making changes.
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