Home Loans for Self-Employed Australians: How to Get Approved
For many Australians, the dream of ditching the 9-to-5 to run their own business is an exciting reality. However, when it comes to securing a home loan, being your own boss can present unexpected challenges.
Lenders often view self-employed borrowers as a higher risk, primarily because their income may fluctuate month to month. Fortunately, with the right preparation, getting approved for a mortgage is absolutely achievable.
How to Strengthen Your Mortgage Application
1. Show Your Business Stability
Banks and lenders prefer to see that your business has been operating successfully for a while.
Holding an Australian Business Number (ABN) for at least one to two years signals financial stability and strengthens your credibility as a borrower.
2. Provide Solid Proof of Income
Unlike salaried employees who can provide pay slips, self-employed borrowers often need additional documentation, such as:
- Business and personal tax returns (typically from the last two years)
- Recent business activity statements (BAS)
- An income statement signed by an accountant confirming financial stability
Each lender has different requirements, so working with a mortgage broker can help identify what documents are necessary for approval.
3. Showcase Your Personal Assets
Evidence of savings and investments can further prove your ability to handle home loan repayments. A consistent history of saving money builds confidence with lenders.
4. Be Honest About Your Income and Expenses
The Australian Tax Office (ATO) estimates that 10% of small businesses under-report their income or exaggerate expenses. While this might seem like a harmless way to reduce tax obligations, it can negatively impact your borrowing capacity.
A lower reported income means lenders may limit the amount you’re eligible to borrow.
Low-Doc Loans: A Solution for Self-Employed Borrowers
If you don’t have all the required financial documentation, a low-doc home loan might be an option. These loans are specifically designed for self-employed borrowers, offering a simpler approval process.
However, low-doc loans often come with higher interest rates due to the perceived risk by lenders. The good news? If you maintain consistent repayments, lenders may allow you to transition to a full-doc loan, potentially securing a lower rate.
Not all lenders offer low-doc loans, so it’s important to work with a mortgage broker to find the best option.
Secure Your Home Loan with CBM Mortgages
Borrowing for a home as a self-employed individual takes a bit more effort—but it’s absolutely doable. If your business has a strong track record, the process can be straightforward, leading to a standard home loan with competitive rates.
At CBM Mortgages, we specialize in helping self-employed Australians secure tailored mortgage solutions.
🔹 Want to check your borrowing power? Use our handy loan calculators to estimate how much you can borrow. Plus you can visit our dedicated Construction finance page here
🚀 Ready to take the next step? Contact us today and let’s get started!
Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.
Written by Craig McDonald 08/06/2025
