Why self-employed applications get knocked back at the bank
Banks generally assess serviceability off your taxable income — the number your accountant has, quite reasonably, minimised for tax purposes. A profitable business with strong cash flow can look, on paper, like it can't support a loan a PAYG employee on half the revenue would qualify for easily. This isn't a flaw in your business. It's a mismatch between how you run your finances and how a standard assessment reads them.
How we structure it differently
Rather than taking your most recent tax return at face value, we look at the whole picture: add-backs for non-cash or one-off expenses, trends across your trading history, and which lenders on our panel take a more considered view of self-employed income. For some situations, a full-doc application structured properly is enough. For others — particularly shorter trading histories, or where your latest return doesn't reflect current, stronger income — a low-doc option using BAS statements or an accountant's declaration may fit better.
Who this typically suits
- Sole traders, partnerships, companies and trusts
- Contractors and consultants, including those on a single dominant contract
- Business owners whose most recent tax return understates current, improving income
- Anyone who's had a broker or lender say "no" without looking past the headline number
Read the in-depth guide: what lenders look for in your application →
Frequently asked
Can I get a home loan if I've only been self-employed for one year?
It depends on the lender and your circumstances — some lenders will consider less than two years, particularly if you worked in the same industry beforehand or can show strong trading history. It's worth a conversation rather than assuming the answer is no.
Do I need two years of tax returns to apply?
Most full-doc lenders prefer two years, but options exist for shorter trading histories or where your most recent return understates current income, including low-doc alternatives in some circumstances. See our low-doc lending page for more detail.
Will my accountant minimising my taxable income hurt my application?
It can, since most lenders assess serviceability off your declared taxable income, not your actual cash flow. This is exactly the kind of situation where the right lender and loan structure makes a real difference, which is why comparing across a panel matters.
What's the difference between full-doc and low-doc for self-employed borrowers?
Full-doc uses your tax returns and financials as the primary evidence of income. Low-doc uses alternative evidence — like BAS statements, accountant declarations or bank statements — for borrowers who can't yet provide two full years of financials.