Being self-employed shouldn’t make a home loan harder, but it often does, because lenders are built around PAYG payslips. Business owners, sole traders and contractors frequently earn well yet get knocked back or offered less, simply because their income doesn’t fit a standard template. The income is there; it just needs to be presented to a lender that knows how to read it.
There are two main paths. Full-doc loans use your tax returns and financials, usually over two years, and access the same rates and high LVRs as any other borrower. Low-doc loans suit those whose paperwork doesn’t yet reflect their income, using alternative verification such as business activity statements (BAS), an accountant’s declaration or trading bank statements. Each lender treats self-employed income, add-backs and newer businesses differently, which is where the right match matters most.
At Loanworx, we arrange home loans for the self-employed across full-doc and low-doc options. As an experienced finance broker, we work for you rather than for any single lender, presenting your income in its strongest form and matching you to a lender comfortable with how your business earns.
Self-employed and looking to buy, build or refinance? Call us on 1300 562 696 or get in touch and we’ll be back to you shortly.
Self-employed lending comes down to how your income is verified and which lender reads it best. Here are the three things that shape your options.
If you have around two years of tax returns and financials, full-doc lending gives you access to the same rates, features and high LVRs as any other borrower. The key is presenting the financials correctly, including legitimate add-backs, so your real income is what gets assessed.
Where your paperwork doesn’t yet reflect your income, low-doc loans use alternative verification such as BAS, an accountant’s declaration or trading bank statements. They suit newer businesses and those with strong cash flow but complex returns, usually at a slightly higher rate or lower LVR.
Lenders can add back certain expenses, such as depreciation, one-off costs and owner-related items, to reflect your true earnings. Some lenders also consider businesses trading for as little as one year. Which lender you choose changes what counts.
The frustration for most self-employed borrowers isn’t a lack of income, it’s a lender that doesn’t understand it. A business owner with strong cash flow can look weaker on paper than a salaried employee earning less, purely because of how the figures are read.
We present your income the way a lender needs to see it, apply the add-backs you’re entitled to, and match you to a lender comfortable with your structure and trading history. Whether that’s a full-doc or low-doc path, the aim is a loan that reflects what your business actually earns.
Being self-employed is one of many situations we help borrowers navigate. Explore the other groups and professions we help below.
Medico home loans with LMI waived at high LVRs, plus rate and fee benefits for medical practitioners.
Home loan benefits and waivers available to registered nurses and midwives, including shift income.
Tailored home loans and LMI waivers for pharmacists and community pharmacy owners.
Professional home loan benefits and LMI waivers for qualified and chartered engineers.
LMI waivers and professional packages for solicitors, barristers and legal professionals.
Medico-tier home loans and LMI waivers for dentists, specialists and practice owners.
Home loans with alternative income verification when standard payslips don’t fit.
Home loan options and waivers available to teachers and education staff.
Borrow up to 90% or more without lenders mortgage insurance, if you qualify.
Home loans structured for contract and day-rate IT professionals.
First home grants, schemes and concessions, explained and matched to you.
A self-employed application is assessed on a few factors that matter more than they do for PAYG borrowers. These are the ones that shape your eligibility and terms.
Two years of consistent trading and financials open up full-doc lending and the sharpest rates. Newer businesses aren’t excluded; some lenders consider as little as one year, and low-doc options exist for shorter histories.
We match your trading history to the lenders comfortable with it.
Full-doc uses tax returns and financials; low-doc uses BAS, an accountant’s declaration or bank statements. The right path depends on what your paperwork shows versus what your business actually earns.
We work out which path gives you the best terms for your situation.
Lenders can add back depreciation, one-off costs and certain owner-related expenses to reflect your real income, but each lender applies add-backs differently.
Applying the add-backs you’re entitled to, with the right lender, can lift your borrowing capacity significantly.
A deposit at or above 20% avoids LMI; smaller deposits are workable with it added. Low-doc loans sometimes cap the LVR a little lower or carry a slightly higher rate to reflect the lighter verification.
We work out the deposit and path that give you the best overall position.
The property is the lender’s security, so its type, location and condition feed into the decision, alongside your credit conduct and existing debts. Standard houses and apartments in established areas attract the strongest terms, while unusual properties can narrow the lender panel. We present your full position to a lender that fits it, and flag anything that may limit the options before you commit.
Professional and specialist lending isn’t about the headline rate alone. It’s about being matched to a lender that recognises your situation, presenting your income correctly, and having someone manage the process. Here’s what working with us looks like.
We compare home loans across a broad panel of banks, second-tier lenders and non-bank funders, so you see a genuine spread of options rather than one lender’s offering. We match you to the lender most likely to approve at a competitive rate, which often isn’t the bank you already use.
You deal with experienced brokers who read business financials daily, know which lenders treat self-employed income and add-backs most favourably, and understand the difference between full-doc and low-doc. We shape the application before it’s lodged.
The biggest value we add is presenting your real earning capacity the way a lender needs to see it, applying the add-backs you’re entitled to, and matching you to a lender comfortable with your structure, rather than letting a template undersell you.
For most home loans, Loanworx is paid an upfront and trail commission by the lender after settlement, and that commission typically does not change the rate or fees you pay. Where a fee for service applies to a more complex scenario, we disclose it in writing before any work begins. No surprises.
Yes. Self-employed borrowers, business owners and contractors are well catered for, provided the income is presented correctly. The two main paths are full-doc, using your tax returns and financials, and low-doc, using alternative verification such as BAS or an accountant’s declaration. The key is matching you to a lender comfortable with how your business earns, which is what we do.
Two years of trading and financials open up full-doc lending and the sharpest rates, but you’re not necessarily excluded with less. Some lenders consider businesses trading for as little as one year, and low-doc options exist for shorter histories or where your returns don’t yet reflect your income. We’ll tell you what’s achievable on your current trading history.
Full-doc loans verify your income through tax returns and financials and access the same rates and high LVRs as any borrower. Low-doc loans verify income through alternatives such as BAS, an accountant’s declaration or bank statements, which suits newer businesses or complex returns, usually at a slightly higher rate or lower LVR. We work out which path gives you the best terms.
Add-backs are expenses a lender adds back to your business profit to reflect your true earning capacity, such as depreciation, one-off costs and certain owner-related items. They can materially increase your assessable income, but each lender applies them differently. Presenting the add-backs you’re entitled to, with the right lender, can lift how much you can borrow.
Not necessarily. Full-doc self-employed loans generally access the same rates as any other borrower. Low-doc loans can carry a slightly higher rate or a lower maximum LVR to reflect the lighter income verification, though the gap has narrowed and varies by lender. We compare both paths so you choose with the real numbers in front of you.
Often, yes. Low-doc lending is designed for exactly this situation, where your current income is strong but your tax returns don’t yet tell the full story. Using BAS, bank statements or an accountant’s declaration, the right lender can assess your genuine earning capacity. We match you to a lender that reads your situation fairly rather than penalising it.
Whether you’re buying your first home, upgrading, investing or refinancing, we’ll present your real income to a lender who understands it and match you to the strongest full-doc or low-doc terms available.
Level 15/412 St Kilda Rd
Melbourne VIC 3004
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