Being self-employed gives you freedom, flexibility, and control over your income, but when it comes to applying for a home loan, lenders often ask for a little more proof. I hear this question all the time: “Can I still get a mortgage if I’m self-employed?” The answer is yes, absolutely.
Whether you’re a sole trader, company director, contractor, freelancer, or running your own growing business, securing a home loan is possible. The key is understanding what lenders want to see and preparing properly before you apply.
If you’re planning to buy your first home, refinance, or invest in property, here’s what you need to know.
Who Is Considered a Self-Employed Borrower?
Lenders generally classify you as self-employed if you generate your own income rather than receiving a regular salary through PAYG. This usually includes:
Business owners
Company directors
Contractors and freelancers
Partnerships
Trust beneficiaries
Tradespeople
Home-based businesses
In simple terms, if your income depends on your business performance rather than fixed wages, lenders will usually assess you as a self-employed borrower.
Getting a Mortgage When You’re Self-Employed: What Lenders Need to See
The biggest difference between salaried employees and self-employed borrowers is income verification. When you run your own business, lenders want reassurance that your income is stable, reliable, and strong enough to support your repayments.
Getting pre-approval early can make a major difference. Our guide on Why Pre-Approval Is Your Best Asset When Buying a Home in Australia explains how understanding your borrowing position early can help you avoid costly surprises later.
For self-employed borrowers, preparation upfront often makes the entire approval process much smoother.
How Many Years Do You Need to Be Self-Employed?
Standard Expectation
Most lenders prefer to see at least two years of self-employment history. This usually includes:
- Two years of tax returns
- Two years of financial statements
- Two years of ATO Notices of Assessment
- ABN active for 18 to 24 months
Specialist Options
Some lenders may consider borrowers with only one year of financials if:
- LVR is 80% or lower
- You have a strong deposit
- Your industry is stable
- Strong prior industry experience
Because lenders want to see a pattern of stable earnings, not just one strong year. However, not every lender works the same way.
Can You Get a Home Loan with Only One Year of ABN History?
Sometimes, yes. But it depends heavily on the lender and your overall financial profile. Some lenders may consider one year of ABN registration if: You have prior experience in the same industry, Your accountant can verify business stability, Your BAS statements show strong income, Your savings and deposit position are strong, or Your credit history is clean.
These situations are always assessed case by case. This is one reason many self-employed borrowers choose to work with a broker rather than applying directly with one bank. Different lenders assess business income differently, and the right lender can make all the difference.
If you’re still weighing up the value of broker support, our article on Are Mortgage Brokers Worth It? Understanding Their Role and Value is a helpful place to start.
What Documents Do Self-Employed Borrowers Need?
For Sole Traders
- Personal tax returns (Past 2 years)
- ATO Notices of Assessment
- Business Activity Statements (BAS)
- Bank statements
- ABN registration details
Companies / Trusts
- Personal & Business tax returns
- ATO Notices of Assessment
- Profit and loss statements
- Balance sheets
- Accountant-prepared financials
What Is a Low Doc Home Loan?
A low doc home loan is designed for borrowers who may not have full traditional financial documentation available. Instead of full documentation, lenders may accept: BAS statements, Accountant’s letter, Borrower income declaration, GST registration, ABN history, and Business bank statements.
They’re not always the best first option, but they can be a valuable solution in the right circumstances.
Tips to Improve Your Approval Chances
Clear financial records help lenders assess your income faster and with more confidence.
Lenders love stability. Consistent profit matters more than one exceptional year.
Claiming every deduction may reduce tax, but it can also reduce your borrowing power.
A larger deposit improves confidence. See our guide on Saving for a Home Deposit in Australia.
Understand where you stand. Avoid common traps in What Can Void Your Home Loan Pre-Approval?
Plan co-ownership carefully via Property Co-Ownership: Joint Tenants vs Tenants in Common.
Work with a mortgage broker — especially one experienced with self-employed borrowers.
Your Business Shouldn’t Hold Back Your Property Goals
Being self-employed should not stop you from building wealth through property. Yes, the process may involve more paperwork, but it is absolutely achievable with the right preparation and the right lending strategy. The goal is simple: show lenders that your income is stable, your business is healthy, and you can comfortably manage repayments.
Every lender has different rules, and choosing the right one can save you time, stress, and money. If you’re self-employed and thinking about buying your next property, the right mortgage strategy starts long before the application goes in. Sometimes, the difference between approval and frustration is simply having the right guidance from the very beginning.