Getting a home loan when you run your own business is not harder — it just requires the right preparation and the right lender. Lendology works with self-employed buyers across Adelaide every day.
Standard home loan applications verify income through payslips and group certificates. For self-employed applicants, lenders instead require two years of personal tax returns and notices of assessment, two years of business tax returns and financial statements, and current Business Activity Statements.
The lender uses your taxable income — the figure on your tax return after all deductions — as the basis for assessment. This matters because many self-employed people legitimately minimise taxable income through business expenses and depreciation. A lower taxable income means lower assessed borrowing capacity, even if your actual cash flow is healthy.
Lendology works with you and your accountant before you apply to ensure your income is presented in the most favourable way each lender will accept.
Most lenders require two consecutive years of self-employment to demonstrate income stability. If you have been self-employed for less than two years, your options are more limited — typically specialist or low-doc lenders, which carry higher rates and more conservative LVR limits.
If you are approaching the end of your second year in business and planning to buy, timing your application after lodging your second year of tax returns can significantly expand the number of lenders available to you. Lendology advises on the right timing based on your specific situation.
Many self-employed applicants can increase their assessed borrowing capacity through add-backs — items deducted from taxable income that some lenders will add back for serviceability purposes. Common add-backs include depreciation, one-off business expenses, and certain trust distributions.
Not every lender accepts the same add-backs, and the rules vary significantly. Lendology knows which lenders apply the most generous add-back policies for your specific business structure — and presents your application accordingly.
If your tax returns do not reflect your actual income — perhaps because your business is newer or because you have structured your tax position conservatively — a low-doc loan may be the right path. These loans verify income through alternative documentation: typically 12 months of BAS statements, a signed accountant's declaration, or business bank statements.
Low-doc loans carry higher rates and more conservative LVR limits than standard loans. However, they get self-employed buyers into the market when standard lending is not accessible, and can often be refinanced to a standard loan once two years of tax history catches up with actual income.
Not all lenders are created equal when it comes to self-employed lending. Some major banks apply very conservative policies — using only the lower of your two years of income, applying limited add-backs, and requiring extensive documentation. Specialist and non-bank lenders often have more flexible policies and faster assessment times for self-employed applications.
Lendology compares across 60+ lenders to find the one whose assessment methodology best matches your income structure. This means you get the maximum borrowing capacity available to you — not just what your own bank will approve.
Yes, but your options are more limited. Low-doc and specialist lenders are the typical path at 12 months. Waiting until you have two full years of tax returns significantly expands the lenders available to you and improves the rate you will be offered.
Lenders typically average across two years or use the lower year. Some lenders use the most recent year if it is higher and the trend is upward. Lendology identifies the lender whose assessment methodology suits your income pattern.
Yes. Sole traders, company directors, partnership members and trust beneficiaries are all assessed differently. The way you pay yourself — salary, dividends, trust distributions — affects which income the lender will count. We review your structure before recommending a lender.
Some lenders accept business bank statements as alternative income verification, particularly for low-doc products. The number of months required and the way income is calculated varies by lender. Lendology identifies which approach gives you the strongest application.
Many lenders require an accountant's declaration as part of a low-doc application. For standard applications, having your accountant prepare clear financial statements and confirm your income in writing can significantly strengthen your application. Lendology coordinates directly with your accountant where needed.