How To Get a Home Loan If You Are Self-employed​
Running your own business gives you flexibility and independence, but when it comes to applying for a home loan, many self-employed Australians worry they’ll have a harder time getting approved.
The good news is that being self-employed doesn’t automatically make it more difficult to secure finance. While lenders usually require more documentation than they do for PAYG employees, there are plenty of home loan options available for business owners who can demonstrate a stable income.
At Lime Mortgage Brokers, we help self-employed borrowers across Perth and Western Australia navigate the lending process with confidence. Whether you’re buying your first home, upgrading, investing, or refinancing, the right preparation can improve your chances of approval.
Table of Contents
Can You Get a Home Loan If You’re Self-Employed?
Yes. Most lenders offer home loans for self-employed applicants, provided you can demonstrate that your business generates sufficient income to meet the loan repayments.
Unlike salaried employees who simply provide payslips, self-employed borrowers are generally assessed using business financial documents. Lenders want to understand the stability of your income and the overall financial health of your business before approving a loan.
Working with an experienced mortgage broker can make the process much easier by identifying lenders whose policies best suit your circumstances.
PROVING YOUR INCOME
Self employed income tends to be more complicated as it’s not as simple as providing your payslip. The bank needs to determine your income from your business and will rely on tax returns, financial statements, business bank statements and possibly BAS statements.
In some cases you may need to present records from the last two years so make sure you are up to date with your accounts and tax returns. When a lender determines how much you can borrow, they will generally base their calculations on the profit from the business over the last two years, so making sure your accounts are in order is very important. If you have not done that this financial year, then now is a good time to start getting the finances in order and ready for the next financial year.
HOW MUCH MONEY CAN I BORROW?
This is where having an experienced broker, by your side, who can assist in this process is important. Due to the complexity of the information, determining how much you can borrow requires experience and a good knowledge of financial statements and tax returns.
Make sure you have the right partner as this can have a major impact on how much you can borrow and the information you require. Here at Lime Mortgage Brokers our background is accounting, so understanding financials and tax returns is our specialty.
Borrowing power is a function of your income, so make sure you are budgeting to keep your expenses under control and stream lining your debts (reduce unused credit limits and don’t take on unnecessary debt where you don’t have to)
It’s also really good to check your credit score. You can find an earlier Blog we wrote on this at https://limemortgagebrokers.com.au/your-credit-score-what-can-affect-it/
DO I NEED A HUGE DEPOSIT?
This is a misconception. If you have regular annual financial statements and tax returns completed then the answer is “NO”. We can assist you with getting the same loans accessible by those that are not self-employed. If you have not kept good accounts for any reason, you may then need a higher deposit to offset the risk the lender is taking, by lending to you without current financial statements and tax returns.
WHAT YOU NEED TO DO RIGHT NOW
- Get all your records and accounts up to date
- Consult with your accountant and have them help prepare your accounts and tax return for you
- Speak to a Mortgage Professional to have a look what financing options are available to you
WHAT NOT TO DO
- Do not minimize your income for tax purposes, this will have a huge impact on your eligibility for a home loan
- Do not assume that it’s impossible to get a mortgage if you are self employed
Contact Lime Mortgage Brokers Today
If you’re self-employed and planning to buy a home, refinance, or invest in property, the team at Lime Mortgage Brokers is here to help. We understand the unique challenges business owners face and can help you navigate the lending process with confidence.
Whether you need guidance on preparing your financial documents, improving your borrowing capacity, or finding a lender that understands self-employed applicants, we’re here to support you every step of the way.
Contact Lime Mortgage Brokers today to discuss your goals and discover home loan solutions tailored to your financial situation.
Frequently Asked Questions
Can I get a home loan if I’m self-employed?
Yes. Most lenders offer home loans for self-employed borrowers provided you can demonstrate stable income and meet the lender’s eligibility requirements.
How many years do I need to be self-employed?
Many lenders prefer at least two years of financial history, although some may consider applicants with a shorter trading history depending on their circumstances.
What documents do self-employed borrowers need?
Common documents include tax returns, financial statements, Notices of Assessment, BAS statements, and business bank statements.
Do self-employed borrowers need a bigger deposit?
Not necessarily. Borrowers with strong financial records may qualify for similar loan options as PAYG employees. Deposit requirements vary between lenders.
Should I use a mortgage broker if I’m self-employed?
A mortgage broker can compare lenders, explain different lending policies, and help identify finance options suited to your business structure and financial circumstances.
Conclusion
Here at Lime Mortgage Brokers we want to help you achieve your dreams. We like to share our knowledge and experience with you. We can help steer you on the right path or help you get into your dream home sooner than you thought possible. We have access to several lenders and ones that deal with self-employed loans, so we know where to go. Give us a call or send us and email so we can discuss your current situation.
“our knowledge and experience is yours”
Shawn Swart
Senior Mortgage Broker
t. 0415 761 799
e. shawn@limemortgagebrokers.com.au
w. www.limemortgagebrokers.com.au
The information contained on www.limemortgagebrokers.com.au website and posts is for general information purposes only. Lime Mortgage Brokers assumes no responsibility for errors or omissions in the contents of this publication. The information we provide may not be relevant for all individual circumstances. You should always seek professional advice before you take action in relation to any of the matters in this publication.