Sole traders, contractors, company directors and new businesses are assessed very differently from lender to lender. I compare 50+ lenders to find the ones that understand how you earn your income.
Lenders have very different rules for self-employed income. Knowing which lender fits your situation is most of the job.
Some lenders want two years of tax returns. Others will consider a shorter trading history in the right circumstances.
Lenders differ on which add-backs they accept, how they treat a drop in income and how they assess company or trust income.
I work out which documents the lender needs up front, so your application goes in complete.
A plain-English overview of what lenders usually ask for and why.
Most self-employed borrowers apply with full documentation: usually your last one or two years of personal and business tax returns and notices of assessment, plus financial statements if you run a company or trust.
Lenders can often add back some expenses that reduce your taxable income but are not real costs to you, such as depreciation. Which add-backs they accept varies by lender.
If you have recently started your business, many lenders will want to see more trading history first. Some will consider a shorter history, especially if you have been working in the same industry for a while before going out on your own.
If your tax returns are not up to date, some lenders accept other evidence of income, such as BAS statements, business bank statements or a letter from your accountant. These loans often come with higher interest rates and lower maximum borrowing, so they are worth comparing carefully.
Buying your first home while self-employed? My first home buyer page covers the grants and schemes, and a pre-approval helps you know your budget.
We talk about your business, your income and what you want to buy, and I give you an honest picture.
I look across 50+ lenders for self-employed policy that fits how you earn your income.
I tell you exactly which documents the lender needs, then prepare and lodge the application.
I deal with the lender, keep you updated and stay with you through to settlement.
Have a free, no-obligation chat and I will tell you straight what your options look like.