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Applying for a mortgage when you’re self-employed can feel a little more complex than it does for PAYG applicants but it’s absolutely doable. With the right preparation, the right documents, and the right team behind you, getting approved is well within reach.
Here’s what Australian lenders and banks typically look for when assessing a self-employed borrower 
1. Get Your Documents in OrderAustralian lenders usually require at least two full years of financial documentation, including:
Personal and business tax returns (ATO lodged) Notices of Assessment from the ATO Business Profit & Loss statements, Balance Sheets Recent BAS (Business Activity Statements) Personal and business bank statementsSome banks may accept just one year of financials if the business is stable and profitable but this varies by lender.
2. Know Your Business StructureWhether you’re a sole trader, company director, or operating via a trust, the way your income is structured will affect how lenders assess your borrowing capacity.
• Sole trader? Your personal income is assessed directly.
• Company? Lenders look at your salary/dividends, and potentially retained profits.
• Trust? You’ll need to supply the trust deed and demonstrate how profits are distributed.
Speak to your accountant to understand how your structure impacts your application.
3. Strong Income = Stronger ApplicationLenders in Australia typically average your income over the past two financial years. If your most recent year is lower than the previous one, they may use the lower figure.
Pro tip: Some lenders allow “add-backs” like depreciation, one-off expenses, and interest paid on business debt, which can boost your assessable income.
4. Clean Up Your Financials Before ApplyingLenders will scrutinise your finances, so it helps to:
Separate business and personal expenses Reduce personal and business debt Avoid large, unexplained withdrawals or irregular income Ensure you’re up to date with ATO obligations (a tax debt can be a red flag!)
5. Understand Low-Doc Loans (Only If Necessary)If your financials are incomplete or your business is newly established, some non-bank lenders and a few mainstream banks offer low-doc loans.
You may need:
An accountant’s declaration 6–12 months of business bank statements BAS documentation
Be aware: Low-doc loans often come with higher interest rates and may require a larger deposit (often 20%+). They’re best as a short-term solution.
6. Bigger Deposit, Better OutcomeWhile many self-employed applicants in Australia secure loans with a 10% deposit, aiming for 20% or more gives you a significant edge:
You can avoid paying Lenders Mortgage Insurance (LMI) You’ll improve your loan-to-value ratio (LVR) You may access more competitive interest rates
7. Work With a Mortgage Broker Who Understands Self-EmploymentA broker familiar with the self-employed lending landscape can:
Find lenders that are more flexible with your type of income
Present your financials in the best light
Help structure your loan to match your goalsSome banks are stricter than others, your broker will know which ones are worth applying to.
8. Time Your Application WiselyHave you had a slow financial year? Or are you waiting for EOFY to close with stronger numbers? Timing can make a big difference.
Consider applying after tax returns are lodged showing solid income Or wait until any ATO debt is cleared
Or speak with a broker early to plan 6–12 months ahead
Final ThoughtsBeing self-employed doesn’t mean you can’t get a great mortgage, it just means preparation is everything. If you:
Keep your financials clean Engage the right professionals Have a decent deposit Choose the right lender… then buying a home or investing while self-employed is absolutely possible.
Self-Employed Mortgage Checklist One or two years of tax returns and assessments Up-to-date BAS and business financials Proof of income consistency Deposit of 10–20% or more No (or manageable) ATO debt Use a broker who understands business structures