Securing a home loan is rarely straightforward, but if you’re self-employed, it can feel like navigating a maze with moving walls. Lenders tend to scrutinise self-employed applicants more closely, and without the safety net of payslips or traditional employment, the process can seem overwhelming. But with the right preparation and guidance, getting approved is entirely possible – and can even be simple.
This guide will walk you through what to expect, how to improve your chances, and why working with an experienced mortgage broker like Julie at Mortgage Pass could be the smartest move you make.
Lenders want certainty. When assessing traditional employees, they can look at regular payslips and employment history to determine income stability. But for self-employed individuals, income can fluctuate. You’re also likely to have more complex tax returns, business deductions, and variable cash flow – all of which make assessing your financial position harder for lenders.
That doesn’t mean you’re a risk. In fact, many self-employed Australians have stronger financial positions than salaried employees. You just need to present the right documents in the right way.
Documentation is everything. The more clear, consistent, and comprehensive your records are, the better your chances of getting approved for a home loan. Here’s what most lenders will want to see:
Two years of personal and business tax returns
Two years of notices of assessment from the ATO
Business Activity Statements (BAS)
Proof of ABN and business registration
Business bank account statements
Some lenders also offer low doc home loans, which allow you to apply with less documentation, though they often come with higher interest rates or larger deposit requirements.
Self-employed borrowers generally need at least 10% deposit, but many lenders prefer 20% to avoid Lenders Mortgage Insurance (LMI). Your borrowing power will be based on your net income, not your gross revenue, which means any large deductions can reduce your official earnings on paper.
A savvy broker like Julie will help you structure your application in a way that reflects your true earning capacity, even if your tax returns are conservative.
Don’t underestimate the power of a strong credit score. Pay all your bills on time, minimise debt, and keep your credit file clean in the months leading up to your application.
Lenders also look at how long you’ve been operating your business. Two years is the standard benchmark, but some lenders may consider less if you’re in the same industry or can prove reliable income.
Not all lenders treat self-employed applicants the same. Some are far more flexible and experienced in assessing non-traditional income. The challenge is: how do you know who they are?
That’s where a mortgage broker comes in. Julie at Mortgage Pass works with a wide range of lenders and knows exactly which ones are self-employed friendly. She can match you with the lender that suits your financial situation, rather than forcing you to fit a cookie-cutter mould.
Initial Chat — Discuss your goals, financials, and timeline.
Documentation Review — Julie will help you gather the right paperwork and identify any weak spots.
Lender Matching — Based on your profile, she’ll shortlist the most suitable lenders.
Application Submission — Julie prepares and submits your application to put your best foot forward.
Approval & Settlement — Once approved, she’ll guide you through settlement and beyond.
Julie is your go-to expert for self-employed lending solutions. Whether you’re looking to buy a home, refinance, or unlock equity for your business or investments, she’ll guide you every step of the way.
No jargon. No overwhelm. Just clear, honest advice – tailored to your unique situation.
Let Julie help you:
✅ Navigate lender requirements with ease
✅ Unlock better interest rates and terms
✅ Turn your self-employment into a lending advantage
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Suite 1/219 Merrylands Rd Merrylands 2160
Lv2, 263 Clarence Street Sydney 2000
At Mortgage Pass, we specialise in simplifying finance for business owners, professionals, and tradies by offering tailored mortgage and business finance solutions designed to meet your unique needs.
Our focus is on helping you achieve your financial goals by securing the right home or business finance, all while providing a personalised, client-first experience backed by nearly 20 years of business experience.
J Gear Pty Ltd T/As Mortgage Pass ABN 32 087 513 951 (Credit Representative Number 526611) is authorised under Mortgage Specialists Pty Ltd ABN 48 612 422 178 (Australian Credit Licence 387025)
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