Self-employed home loans are standard home loans assessed on business income rather than payslips. Most lenders want two years of tax returns and notices of assessment (some accept one), then add back depreciation, one-off expenses and interest on debts being refinanced. If your accounts don't yet reflect your true income, low doc / alt doc loans use BAS, bank statements or an accountant's letter instead. A broker's value is knowing which lender reads your financials most favourably.
This page is for people researching self employed home loans and related options such as home loan for business owners, company director home loan, self employed mortgage. It explains how this type of finance generally works, who it may suit, the issues that can affect lender approval, common scenarios and the steps involved from initial review through to settlement or funding.
Every application is assessed on its own facts. Property or asset value, income, expenses, existing debts, credit conduct, entity structure and lender policy can all change the outcome. The information below is general and is designed to help you ask better questions before choosing a lender or loan structure.
Self-employed borrowers may receive income through salary, company profit, trust distributions, dividends or sole-trader earnings. One lender may average two years, another may place more weight on the latest period and another may apply different treatment to retained profits or business liabilities. The income calculation can therefore be as important as the advertised rate.
Certain accounting expenses may be added back to profit under a lender’s policy where they are non-cash, one-off or otherwise accepted. Examples can include eligible depreciation, interest already included elsewhere or specific one-off expenses. Add-backs are lender-specific and should never be assumed without checking the policy and supporting accounts.
A company director may have personal debts as well as liabilities held by a company or trust. Lenders differ in when they include or exclude those commitments. We review the full structure so the application reflects both the income available to the borrower and the debts the lender is likely to assess.
Broker's Guide
What you need to qualify, what to have ready, where lender policies genuinely differ, and the mistakes we see most often. General information — every application is assessed on its own facts.
Scenario 1
Situation: Went from wages to sole trader 14 months ago; latest return shows $128k.
How we'd approach it: One-year financials lender at a slightly higher rate, refinance to a major after the second return is lodged.
Scenario 2
Situation: Director draws $70k but the company retains $110k profit.
How we'd approach it: Lender that accepts company profits with 100% shareholding; add-backs for depreciation and one-off equipment purchase.
Scenario 3
Situation: Two BAS outstanding and a small ATO balance.
How we'd approach it: Lodge and clear first if possible; otherwise a non-bank lender can settle with the ATO balance paid from proceeds.
Our Approach
We start by understanding the full scenario and what you want the finance to achieve. Depending on the transaction, our work can include:
Real Situations
Self-employed applications are often driven by how income appears across personal and business records. Common scenarios include:
Step by Step
Initial strategy call and fact-find
Review relevant income, expenses, liabilities, assets and supporting documents
Identify the main lending objective and any policy constraints
Compare suitable lenders and structures
Present the recommended option, expected repayments, fees and key conditions
Prepare and lodge the application after you decide to proceed
Manage lender questions, valuation or asset checks and approval conditions
Complete documents and settlement or funding
Review the lending again when your circumstances or lender pricing change
A loan approval is only one part of the process. Derwent Finance focuses on understanding the objective, comparing lender policy and helping manage the application from initial strategy through to settlement. We assist borrowers across Australia with home loans, refinancing, investment, construction, self-employed, complex, commercial and business finance scenarios.
Where the best outcome is to keep an existing loan or wait until the borrower’s position changes, the recommendation should reflect that rather than moving a loan simply to create a transaction.
FAQs
Yes. Many mainstream and specialist lenders lend to self-employed borrowers.
Not always. Some lenders may accept one year in certain circumstances.
Potentially, depending on ownership and sustainability.
Certain lender-accepted expenses may be added back when calculating assessable income.
Different lenders treat increasing income differently.
Yes. Similar income-verification principles apply.
Still have questions? Speak with our team
Ready to understand your options? Book a Strategy Call with Derwent Finance. We can review your current position, what you want to achieve and which lending pathways may be available.
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General information only. Credit assistance is subject to individual circumstances and lender criteria. Interest rates, fees, lender policy, government schemes and eligibility can change without notice. This website does not provide legal, taxation or financial advice. Content last reviewed: August 2026.
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