Self-Employed Home Loans in Sydney
Yes. Most self-employed borrowers can get a home loan — the question is which lender. Some accept one year of trading, some assess on BAS statements, and some add back legitimate expenses. The big banks often want two full years of tax returns, but more than 60 lenders means more than one answer.
Why lenders hesitate
When you're self-employed, your income isn't a single payslip a lender can verify in two minutes. It's a picture built from tax returns, notices of assessment, business financials and sometimes BAS. Lenders worry about two things: whether your income is real, and whether it's stable.
The "real" worry is about how much of what you earn actually hits your tax return. Self-employed borrowers legitimately claim a range of expenses — vehicle costs, home office, equipment, depreciation — that reduce taxable income. That's good for your tax bill, but it can make the income a lender uses for servicing look lower than what you actually live on.
The "stable" worry is about consistency. A lender wants to see that this year's income isn't a one-off spike, and that a bad quarter won't sink your repayments. Two years of tax returns is the easy way to prove consistency — but it's not the only way.
Which lenders are flexible
Not all lenders read self-employed income the same way. The differences are real, and they're the whole reason a broker exists for this situation. Here's what differs across the panel — without naming any specific lender.
One year vs two years of returns
The big banks typically want two full years of personal tax returns and business financials, and they'll often average the two. Some specialist and second-tier lenders will accept one year of trading — useful if you've recently gone out on your own, or had a stronger second year. A few will look at your most recent year alone if it's clearly the better indicator of ongoing earnings.
BAS-based assessment
Some lenders can assess your income from your Business Activity Statements rather than waiting for completed tax returns. They look at the GST turnover you've reported to the ATO as a proxy for revenue. This suits borrowers whose tax returns aren't finalised yet, or whose accountant is still working through the figures. It's faster, and it reflects recent trading rather than last year's.
Add-backs
An "add-back" is an expense the lender agrees to add back to your taxable income when calculating what you can borrow — things like depreciation, one-off business expenses, interest on loans that are being paid out, or salary paid to a spouse. Different lenders have different add-back lists, and a generous add-back policy can materially change your borrowing capacity. Knowing which lender counts which add-back is where the comparison earns its keep.
The short version: there's no single "self-employed lender". There's a panel of lenders with different rules, and the right one depends on how long you've been trading, how your income is structured, and which expenses you legitimately claim. We work out which lender's policy fits your actual figures.
What you'll need to show
The exact list depends on the lender we target, but here's what to have ready. If you're missing something, tell us — there's often a workaround.
- Last one or two years' personal tax returns and notices of assessment.
- Last one or two years' business financials (if trading through a company or trust).
- Recent BAS statements — usually the last two to four quarters.
- Business bank statements for the most recent three to six months.
- Personal bank statements showing your savings and living expenses.
- ID, and details of any existing debts (credit cards, car loans, ATO payment plans).
- If you have an accountant, a letter confirming your income can help — some lenders accept it.
A worked example
This is an illustrative scenario, not a real client. It shows how lender choice can change the result for a self-employed borrower using exactly the same figures.
Take a carpenter who has traded as a sole trader for 14 months. First-year taxable income is modest because equipment and vehicle costs were front-loaded. A lender that insists on two full years of tax returns, or averages in the low first year, will assess a low income and may decline.
A specialist lender that assesses on recent BAS turnover together with the latest tax return, and adds back depreciation and one-off equipment purchases, can arrive at a materially higher assessed income from the same records. Whether that is enough depends on the loan size and the rest of the application.
| Trading history | 14 months (sole trader) |
|---|---|
| Year-1 taxable income | $58,000 (after heavy deductions) |
| Recent BAS turnover (annualised) | ~$210,000 |
| Add-backs a specialist lender may apply | Depreciation, one-off equipment |
| What changes | How the lender reads the figures, not the figures themselves |
Illustrative only, not a real client. Your situation will differ.
Common questions
Often yes. Some lenders accept one year of trading, particularly if your BAS turnover and recent bank statements support the income you're claiming. Two years is the common default, not a universal rule.
It can be, but it doesn't have to be. Lenders with generous add-back policies will add back things like depreciation and certain one-off expenses, which lifts your assessed income. The trick is matching you to a lender whose add-back list includes what you claim.
Not always. Some lenders can assess on BAS statements and recent business bank statements before your tax return is lodged. That's useful early in a financial year, or if your accountant is still working through the figures.
No. A decline from one lender is a decline from one lender, not from the market. Self-employed borrowers get declined by the majors all the time and then approved by a specialist lender on different terms. We'll look at why you were declined and target lenders whose policy reads your situation differently.
No. In almost all cases the lender pays our commission, not you. The fee structure is the same whether your income is one payslip or a set of business financials.
Not sure whether your situation would pass? The home loan readiness check takes about a minute, involves no credit enquiry, and tells you what would hold up an application before you make one.
Let's look at your figures
Send through a few details and we'll tell you which lenders fit your situation — no obligation, no fee.