Self Employed

Home Loans for self employed

Depending on your financial situation and your home loan needs, there are a multitude of competitive home loan options for the self employed or small business owner. Assessment criteria for the self employed will depend on the loan type, and be based upon the borrower’s net asset base, business income, and also their ability to repay their ongoing debts.

Full Documentation

If you’re able to verify your income and assets through the provision of financial and other related documents, you may be eligible for a more cost effective Full Documentation loan option. These documents will help prove to Lenders your ability to repay your loan. Most of the documents listed below should be easily accessible, especially with some assistance from your accountant.

Documents that are typically required to verify your income stream:

  • Financial statements (profit and loss statement, Balance sheet) for the last two years
  • Business and Personal Tax Returns for the last two years
  • Other documents which may be helpful in your credit assessment include those outlining your current personal & business commitments such loan statements and details of facilities required for refinancing    

Low Documentation

In contrast to employees, self-employed or small business borrowers do not have regular income streams and may not meet the standard credit assessment criteria used by Lenders.  Those without full documentation may find it more suitable to access a ‘low doc’ loan. Documentation required for low doc loans will differ across Lenders, but the below documents are quite typical of what may be required when applying for a loan.

Documents which may be accepted

  • Borrower Self-Declaration of Income / Accountants Certified Letter to verify personal/business solvency and trade position
  • 12 months of Business Activity Statements
  • 3 months of business account statements

All prospective self-employed borrowers must have a current ABN which is GST registered. The ABN must also have been registered for at least two years; however exceptions to this time period may be made with some Lenders.