Qualifying for a home loan when you are self employed used to be a difficult task. Mainstream lenders would usually ask for your personal and company tax returns for the past 2 or 3 years. If these were not available then you usually wouldn't be able to qualify for a home loan. Nowadays more flexible lenders have entered the marketplace with low doc home loans, which don't require you to provide proof of income. When this type of loan hit the market a few years ago the interest rate was generally higher than standard rates. In today's mortgage marketplace it is possible to attain a low doc home loan at normal interest rates.
Self Employed Tools
Self Employed Loan Options
If your tax returns are up to date and you have been self employed for at least 2 years you may qualify for our lenders standard home loan products. Please see our standard home loans page for more information on these products.
If your tax returns are not up to date and/or you have been self employed for less than 2 years we may still be able to help you qualify for a low doc home loan. If you fit into one of the following categories we may be able to help. If you have any questions about any of the products mentioned please submit your question using our contact us page or call us on 1300 66 12 11. If you would like a free, no obligation assessment of your loan options please apply online.
Self employed loans where income is verified with tax returns
You have been self employed for at least 2 years and have tax returns
|If you have been self employed for at least 2 years and your tax returns show a taxable income sufficient to pass the lenders serviceability requirements, you should generally be able to attain a loan from most traditional lenders, such as the major banks, up to 97% of the property value. You will need to supply 2 years of accountant prepared tax returns. Most lenders will normally take the average of your last 2 years taxable incomes assuming the taxable income for each year doesn't differ by a large amount. Please call 1300 66 12 11 for more information or apply online for a free, no obligation assessment of your situation.
You have been self employed for less than two years and have at least one tax return
|Some mainstream lenders will consider borrowers in this situation on a case by case basis (must be a strong case and previous experience in the same industry is preferred). Generally, the maximum borrowing in such a situation will be 80% of the property value as mortgage insurers usually expect at least 2 years of self employment. You will need to supply an accountant prepared tax return. Please call 1300 66 12 11 for more information or apply online for a free, no obligation assessment of your situation.
Low doc and no doc home loans where proof of income is not required
You have been self employed for at least 2 years but you are unable to provide tax returns
There are a number of lenders who now offer Low Doc home loans to cater for this situation. These loans have become popular due to the fact that many self employed people face delays in preparing tax returns. A low doc home loan involves you signing a declaration that states your annual income instead of providing tax returns. Although tax returns are not required for this type of home loan lenders will still require one or more of the following supporting documents:
- Last 4 quarterly Business Activity Statements
- Last 6 months business bank account statements
- Signed letter from your accountant
In some cases the interest rate on low doc home loans is comparible with standard home loans. You may be able to borrow up to 80% of the property price under the low doc loan policy. To get access to the best interest rates a 20% deposit is required. Most lenders require you to have an ABN number that is at least 2 years old and if your declared income is greater than $75k p.a. you must be registered for GST. Please call 1300 66 12 11 for more information or apply online for a free, no obligation assessment of your situation.
* Loans are approved or declined on their merits by the specified lender and a loan approval is not guaranteed.
* We believe the information on this page to be correct. However we can give no warranty to this effect and we expressly disclaim any liability for loss or damage by any person acting upon advice contained on this page.