If you are self-employed and you have been knocked back for a home loan, it is easy to assume the problem is you. Often, it is not. It is how your income was read.
We see it constantly. Strong businesses, capable owners, more than enough income to comfortably afford a loan, and still declined or offered far less than they should get. Almost always, the issue is not the numbers themselves. It is that nobody took the time to understand them.
Saving tax can make your income harder to read
To save on tax, a lot of business owners set up more complex structures: companies, trusts, or a mix of both. On your accountant’s advice, that is often exactly the right move for your business. But it also makes your income harder to read on a loan application, because your earnings are spread across entities rather than sitting neatly on a payslip.
A complex structure is not a problem. It just means you need someone who can sit down, understand it, and explain it to a lender properly.
Self-employed income moves, and that spooks some lenders
The other reality is that self-employed income is rarely flat. It moves year on year as your market and your industry shift, and that flows through to your income, your expenses and your profit. A strong year, a quieter year, a big equipment purchase, it all changes the picture.
To a lender who does not understand your industry, that variability looks like risk. To a broker who does, it is just context.
The mistake most people never see
Here is where it goes wrong. Plenty of brokers and bankers assess a self-employed loan the lazy way. They take your last two notices of assessment, plug in the numbers, and that is it. No effort to understand the structure, the industry, or what actually drove those figures.
The result is that good clients get declined, or worse, quietly disadvantaged. We regularly see self-employed borrowers left with far less borrowing power than they should have, purely because their income was never presented properly.
What assessing it properly looks like
Doing it right takes more work, and it is worth it. It means understanding how your business actually earns, reading your structure the way your accountant intended, and knowing which lenders take a considered view of self-employed income rather than a box-ticking one.
The same borrower, with the same numbers, can get two completely different answers depending on who presents the application and how well they understand it.
Who this matters for
- Business owners and company directors whose income sits across a company or trust.
- Sole traders and tradespeople whose income moves year to year.
- Anyone recently told no by a bank or broker who did not dig into the detail.
A few questions we get asked
Can I get a home loan if I am self-employed?
Yes. Self-employed borrowers get home loans every day. The key is choosing a lender whose policy suits your situation and presenting your income in a way that reflects the full picture.
How many years of financials do I need?
Often two years, but not always. Some lenders will consider one year of figures or accountant-prepared information, depending on your circumstances.
Does a company or trust structure hurt my chances?
Not if it is understood and presented correctly. A complex structure only becomes a problem when whoever is assessing the loan does not take the time to read it properly.
I was declined once. Is that the end of it?
No. A decline with one lender is not a decline everywhere. It is often worth a second look with someone who understands self-employed lending.
Talk to The Brokerage
If you are self-employed and you have been told no, or you simply want your income assessed by someone who will take the time to understand it, we would love to help. We work with business owners, company directors and sole traders across Brisbane, Sydney, Melbourne and the rest of Australia.
Get in touch with The Brokerage.
General information only. This article does not take into account your personal circumstances and is not financial or credit advice. Lending criteria, interest rates and borrowing capacity vary by lender and are subject to approval. Please seek advice tailored to your situation.