Self-Employed Home Loans in Australia: Can You Get a Mortgage Without Two Years of Tax Returns?
Yes, self-employed Australians can get a home loan. You do not always need two full years of tax returns, although two years of financials remains a common lender requirement.
Some lenders can assess eligible self-employed borrowers using one year of tax returns, one year of financial statements or alternative income evidence. The right pathway depends on your business structure, trading history, income consistency, deposit, credit profile and the lender’s current policy.
This is why one bank’s answer is not necessarily the market’s answer. Brampton Finance helps business owners, sole traders, contractors and professionals across Sydney and Australia identify lenders whose policy fits their actual income position.
Can self-employed people get a home loan in Australia?
Yes. Being self-employed does not prevent you from getting a home loan. Lenders simply need more evidence to understand whether your income is stable, sustainable and sufficient to support the proposed repayments.
Self-employed borrowers may include:
Sole traders.
Company directors.
Partners in a business.
Contractors paid under an ABN.
Freelancers and consultants.
Medical, legal, accounting and other professional business owners.
Tradespeople and small-business owners.
The application process can be more detailed than it is for a PAYG employee, but a well-prepared self-employed application can be very strong.
How many years of tax returns do I need for a self-employed home loan?
Many lenders commonly ask for two years of personal and business tax returns, ATO Notices of Assessment and business financial statements.
However, some lenders may consider one year of financials or one year of tax returns in suitable circumstances. The requirements depend on the lender, loan-to-value ratio, business structure, industry, credit history and how consistent the income appears.
A borrower who has traded for several years with one strong recent financial year may be assessed differently from someone who has just started a new business. There is no universal “two-year rule” that applies identically to every lender.
Can I get a home loan with one year of ABN?
Possibly. Some lenders may consider borrowers with around one year of self-employed income history, while others require a longer trading period or more financial evidence.
The lender may look at:
How long your ABN has been active.
Whether you worked in the same industry before becoming self-employed.
Your most recent tax return and Notice of Assessment.
Business bank statements and BAS.
Contracts, recurring clients or future income evidence.
Your deposit, credit history and existing debts.
Whether income is increasing, stable or declining.
Options can be more limited when you have a shorter trading history, but a shorter history does not always mean there is no pathway.
What documents do self-employed borrowers need?
Common documents for a self-employed home-loan application include:
Personal tax returns.
Business tax returns.
ATO Notices of Assessment.
Profit and loss statements.
Balance sheets.
Business Activity Statements.
Personal and business bank statements.
ABN and GST registration details.
Evidence of existing business debts or liabilities.
Accountant-prepared financials or accountant letters, where required.
Contracts or evidence of recurring income, where relevant.
The exact document list depends on the lender and your business structure. Having organised, current financials can make a substantial difference to the speed and strength of an application.
How do lenders calculate self-employed income?
Lenders do not simply use business turnover. They assess the income available to support loan repayments.
They may look at taxable income, company income, director’s wages, dividends, retained profits, add-backs, depreciation, business liabilities and the trend in your income over time.
Some lenders average income across two years. Others may use the lower year if income has declined, or may apply a conservative adjustment to variable income. This is why profitable businesses can still receive different borrowing-capacity results from different lenders.
Can I get a home loan if my income has increased recently?
Potentially. Recent income growth can be helpful, but lenders want to see that it is sustainable.
If your latest tax return is materially stronger than the prior year, a lender may want to understand what caused the increase and whether it is likely to continue. Signed contracts, long-term clients, industry experience and current business performance may be relevant.
A lender with a policy better suited to growing businesses may assess the same income differently from a lender that relies heavily on historical averages.
Can I get a home loan if my business has made a loss?
It depends on the reason for the loss, the overall financial position and lender policy.
A loss in a tax return does not automatically mean a borrower cannot obtain finance. Lenders may review whether the loss was caused by a one-off expense, depreciation, asset write-off, expansion cost or a genuine decline in trading performance.
The correct approach is to provide a clear explanation with supporting evidence. Do not assume a decline from one lender applies everywhere.
Are self-employed home-loan rates higher?
Not necessarily. Self-employed borrowers with strong financials, a good credit profile and an appropriate deposit may access standard home-loan options.
Alternative-documentation or low-doc products can have different rates, fees and risk requirements. These products may help borrowers who do not fit full-documentation criteria, but they should be compared carefully against standard lending options.
The best outcome is not always the lowest advertised rate. It is the loan structure, lender policy and repayment position that best suits your circumstances.
How can I improve my chances of home-loan approval when self-employed?
You may improve your position by:
Keeping personal and business finances organised.
Ensuring tax returns and financials are current.
Reducing unnecessary personal debt and credit-card limits.
Building a stronger deposit and maintaining a cash buffer.
Explaining income changes, business expenses and liabilities clearly.
Avoiding major new business or personal debt before applying.
Speaking with a mortgage broker before making major tax or lending decisions.
Do not alter your tax strategy purely for a home-loan application without first speaking with your accountant. Tax planning and borrowing capacity can interact, but they should be considered properly.
Do I need a mortgage broker for a self-employed home loan?
You can apply directly to a bank, but a broker can be particularly valuable for self-employed borrowers because lender policies differ significantly.
Brampton Finance compares suitable lenders, reviews how your business income may be assessed and helps ensure your application is presented clearly. We work with self-employed borrowers, company directors, sole traders, contractors and professionals seeking to buy, refinance or invest.
Frequently asked questions
Can a sole trader get a home loan?
Yes. Sole traders can get home loans, although lenders may request personal tax returns, ATO Notices of Assessment, bank statements and other evidence of income and business stability.
Do self-employed borrowers need a bigger deposit?
Not always. Deposit requirements depend on lender policy, your income evidence, property type, credit history and the overall application. A larger deposit can improve available options, but it is not the only factor.
Can I get pre-approval if I am self-employed?
Yes. Self-employed borrowers can seek pre-approval. The lender will usually require appropriate income documentation before providing a conditional assessment.
Can a contractor get a home loan under an ABN?
Yes. Contractors paid under an ABN may be assessed as self-employed. The lender will consider trading history, income evidence, contracts and its own policy.
Information is general in nature and does not take into account your personal objectives, financial situation or needs. Consider whether it is appropriate for you.
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