Being self-employed doesn't make a home loan out of reach, but it does change what a lender wants to see — and being prepared for that difference saves a lot of back-and-forth.

Income verification looks different

Rather than payslips, self-employed applicants typically need two years of tax returns and notices of assessment, and sometimes financial statements prepared by an accountant. Lenders generally look at an average or the lower of the two years' income, not just your most recent, best year.

Business structure affects the process

Whether you operate as a sole trader, through a company, or via a trust changes which documents are needed and how income is assessed. Getting this sorted with your accountant before applying avoids delays once your application is with a lender.

Some lenders offer alternative documentation options

A small number of lenders offer 'low-doc' style options for self-employed borrowers who can't provide two full years of financials, though these often come with different terms and a higher deposit requirement. These aren't right for everyone, but they're worth knowing about.

Chris Brown

Chris Brown

Managing Director & Finance Broker at New Vision Financial Services, a credit representative under Australian Credit Licence 384704 and a member of the FBAA and AFCA. More about Chris →

→ See our dedicated Self-Employed Home Loans page

General information only. This article is general in nature and doesn't take into account your personal financial situation, objectives or needs. It isn't tax, legal or financial advice. Lending criteria, product availability and policies vary between lenders and are subject to change — always confirm current detail with your broker before making decisions.

Frequently asked

How many years of self-employment do I need before I can apply?

Most lenders prefer at least two years of financials, though some will consider less with the right supporting evidence, particularly if you were employed in the same industry beforehand.

Does a company structure make it harder to get a loan?

Not necessarily harder, but it does change what documentation is needed — lenders will typically want to see the company and, often, director financials and tax returns.

Can I use accountant-prepared financials instead of tax returns?

Some lenders accept accountant-prepared financials as supporting evidence, but most will still want lodged tax returns and notices of assessment as the primary verification.