Self Employed and Business Owner Lending
Straight answers for self employed borrowers and business owners, from one year tax returns and low doc options to add backs, company profit and combining income streams. General information, current for 2026.
Being self employed changes how your income is evidenced, not whether you can borrow. Depending on the lender and the loan, income may be shown through full tax returns, a single year of returns, business activity statements, business bank statements or an accountant declaration, and how that income is presented, through genuine add backs and counting company profit, can lift your borrowing capacity. Policies vary by lender and change, so matching your situation to the right lender matters. These guides explain each, current for 2026. General information, not financial or tax advice.
Clear answers to common questions for self employed borrowers and business owners in Australia: getting a loan with one year of tax returns, low documentation options using business activity statements or bank statements, accountant declarations, how add backs and company profit affect borrowing capacity, lending on a short ABN, and combining PAYG and self employed income. These describe the kinds of lender policies that exist, which vary by lender and change over time. General information, not financial or tax advice, with figures to be confirmed by your accountant.
Self employed income is workable
Being self employed does not lock you out of a home loan. It changes how income is evidenced and which lender suits. Full returns, one year assessments, and alternative documentation are all paths, depending on your situation.
Documentation drives your options
Lenders may accept tax returns, business activity statements, business bank statements or an accountant declaration, depending on the product. Tidy, well prepared financials widen your options and improve your terms.
How income is presented matters
Add backs of non cash and one off costs, and counting company profit rather than only a director wage, can lift the income figure used for serviceability, within the bounds of what is genuine. Your accountant is central to this.
Policies vary and change
What lenders accept differs between lenders and changes over time, so a decline from one lender does not mean the loan is impossible. Matching your situation to the right lender is the key.
Where to get help
These are general guides, not financial or tax advice. A broker can match your situation to the right lender, and your accountant should confirm how your income is presented.
- Self employment changes how income is evidenced, not whether you can borrow, with full returns, one year assessments and alternative documentation all possible.
- Some lenders accept business activity statements, business bank statements or an accountant declaration in place of full tax returns, generally with a larger deposit.
- How income is presented matters: genuine add backs and counting company profit, not only a director wage, can lift the income used for serviceability.
- A short ABN or one year of returns does not automatically rule out a loan, particularly with prior industry experience and a strong file.
- Policies vary by lender and change, so matching your situation to the right lender is the key, and your accountant should confirm the figures.
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Self Employed and Business Owner Lending: common questions
Can I get a home loan with only one year of tax returns?
Possibly. Most lenders prefer to see two years of tax returns for self employed borrowers, but some may consider just the most recent financial year in certain circumstances, for example where the business is established and income is steady or rising. Whether a lender will do this, and on what terms, varies by lender and by your situation, so it is worth checking rather than assuming.
Can I use my BAS to prove income for a home loan?
Some lenders offer low documentation loans that let self employed borrowers verify income using business activity statements, often covering a recent period, instead of full tax returns. These loans generally require a larger deposit and may carry a higher rate, and are offered mainly by non bank and specialist lenders. Availability and conditions vary by lender, so it is worth checking your options.
Can I get a home loan using my business bank statements?
Some lenders offer low documentation loans that assess a self employed borrower income using business trading account statements over a recent period, instead of full tax returns. They look at the deposits and cash flow through the account to gauge income. These are specialist products with their own deposit and rate settings, and availability varies by lender.
What is an accountant declaration for a home loan?
An accountant declaration is a signed letter from your qualified accountant confirming your income or your ability to service a loan. Some lenders accept it as part of a low documentation application for self employed borrowers, alongside other evidence such as business activity statements or bank statements. Whether a lender accepts it, and what else they require, varies by lender.
How do add backs increase a self employed borrower capacity?
When assessing self employed income, lenders often start from your business net profit and add back certain expenses that are not ongoing cash costs, such as depreciation, the interest on debts being refinanced, and genuine one off costs. This can lift the income figure used for serviceability. What can be added back varies by lender, and your accountant should confirm the figures.
Can lenders count company profit, not just my director wage?
Some lenders will count the retained net profit of a company toward a director borrowing capacity, not only the wage the director draws, where the director owns the business. This can significantly change the income figure used for serviceability. Whether a lender does this, and how, depends on the lender and your ownership of the company, so it varies.
Can I get a home loan with a newly registered ABN?
Sometimes. Many lenders prefer an ABN that has been registered for around two years, but some may consider a shorter trading history, for example six to twelve months, particularly where you have prior experience in the same field. Whether a lender will do this, and on what terms, varies, so a short ABN does not automatically rule out a loan.
Can I combine PAYG and self employed income for a home loan?
Yes, in many cases. If you have part time or full time PAYG employment alongside a side business as a sole trader, lenders can often consider both income streams when assessing your borrowing capacity. They generally want to see that each is consistent, and how they treat the self employed portion varies by lender, so the assessment depends on your situation.
General information only. This page provides general information about home loans and is not financial or credit advice, a quote, or a guarantee, and your personal circumstances have not been considered. Lending policies, interest rates, fees and eligibility vary by lender and change over time. Always confirm your own situation with a licensed mortgage broker or lender before acting. Ross McFarlane (Credit Representative 526725) is an authorised Credit Representative of Australian Associated Advisers Pty Ltd t/a Keylend, Australian Credit Licence 392169.