Home Loans for Self-Employed Borrowers—What You Need to Know
Getting a home loan as a self-employed borrower comes with unique challenges. Unlike salaried workers, you may not have traditional employment documents like payslips or tax returns. However, many lenders offer specialised loans designed specifically for self-employed applicants.
You can prove your ability to service a loan using:
📂 Bank statements
📑 Accountant declarations
📊 Business financial records
While self-employed borrowers may face extra hurdles, homeownership is absolutely achievable with the right approach.
💡 Explore home loan options tailored for self-employed borrowers
Preparing for a Self-Employed Mortgage Application
1. Reduce Debt to Strengthen Your Loan Eligibility
Lenders assess your total available credit, not just your outstanding balances. To improve your chances of approval, consider:
✅ Paying down credit cards and personal loans
✅ Lowering credit limits as you clear debt
✅ Cancelling unnecessary credit cards to boost credit scoring
💡 Learn how debt reduction impacts home loans
2. Maintain Strong Financial Records
Lenders prefer applicants with well-organized finances and a clear income history. Strengthen your loan application by:
✅ Keeping business and personal tax returns up to date
✅ Paying tax assessments on time
✅ Using accounting software (like Xero, MYOB, or Hnry) for accurate financial reporting
💡 Smart tax strategies for self-employed borrowers
3. Build a Strong Deposit & Savings History
A healthy deposit demonstrates financial discipline and helps improve your loan terms. Consider:
🔹 Showing at least six months of high income and controlled expenses
🔹 Preparing an emergency savings buffer
🔹 Aiming for a minimum 20% deposit to secure better interest rates
💡 Find out how deposit size affects mortgage approval
4. Work With a Mortgage Broker for Tailored Solutions
Unlike traditional banks, mortgage brokers have access to specialist lenders who assess applications on a case-by-case basis—making them ideal for self-employed borrowers.
📌 Banks follow strict policies, whereas mortgage brokers can find flexible solutions suited to non-traditional income streams.
💡 Get expert mortgage advice for self-employed buyers
How Do Self-Employed Home Loans Differ?
Self-employed home loans often have slightly different conditions, including:
🔹 Interest rates 1-2% higher than standard loans
🔹 Loan-to-value ratio (LVR) typically capped at 80%
🔹 Lenders Mortgage Insurance (LMI) required for loans over 60% LVR
💡 Explore financing options for self-employed borrowers
Ready to Secure a Home Loan? Let’s Make It Happen
At CBM Mortgages, we specialize in helping self-employed buyers navigate loan applications with expert guidance and custom solutions.
✅ Compare loan options tailored to self-employed applicants
✅ Find lenders who accept non-traditional income documentation
✅ Get personalised support throughout the mortgage process
📞 Contact CBM Mortgages today and start securing your dream home!
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Written by Craig McDonald 12/06/2025
