Company Director Home Loans
Home loans for directors earning through salary, dividends or company profits. We assess your income structure and business commitments before comparing suitable lenders.
$1.824 Million Approved for Clients With a Complex Corporate Structure
The Brokerage secured unconditional approval for self-employed clients purchasing their next home in NSW.
Their application involved a complex corporate structure that required a detailed assessment of their financial position.
| Transaction detail | Outcome |
|---|---|
| Loan purpose | Owner-occupied home purchase |
| Loan amount | $1,824,000 |
| Loan-to-value ratio | 80% |
| Lender | Macquarie |
Published May 2024. This approval reflected the clients’ circumstances and lender requirements at the time.
Home Loans for Directors With Different Income Structures
We help directors looking to purchase, invest or refinance, including:
- Business owners receiving a salary from their company.
- Directors receiving dividends or retaining profits within the business.
- Shareholders in companies with multiple owners.
- Directors with income flowing through several companies or trusts.
- Professionals operating through a company structure.
- Directors whose business or income arrangements have recently changed.
We review how you earn, what you own and the commitments attached to your personal and business finances.
For broader business-owner borrowing, explore our self-employed home loan services.
A Personal Home Loan Supported by Company Income
A company director home loan generally refers to an individual’s home loan where income is earned through a company.
The lender assesses your ability to repay and may review the business supporting that income.
Borrowing through a company to purchase property in the company’s name involves different ownership and lending considerations. Tell us who will own the property so we can assess the appropriate lending pathway.
How Lenders Classify Company Directors
Your job title alone does not determine how your income will be assessed.
Lenders may consider:
- Your ownership percentage.
- Your control over the business.
- Whether you receive salary, fees, dividends or other income.
- Whether company profits are needed to support the application.
- The business’s financial position and trading history.
Receiving payslips from your own company can still involve a self-employed assessment.
We establish the relevant requirements before preparing the application.
Salary and Director’s Fees
A regular salary can provide evidence of personal income, but the lender may also need to establish that the business can continue paying it.
Supporting records may include payslips, salary credits, ATO income statements, tax returns and evidence of business profitability.
Director’s fees may require a separate review of their amount, frequency and expected continuation.
We check which evidence the lender accepts and whether salary alone supports the borrowing required.
Dividends and Company Profit Assessment
Depending on the lender and your circumstances, dividends or an eligible share of company profits may support your application.
The assessment can consider ownership, income history, business performance and the sustainability of payments.
The figures also need to be reconciled correctly. Salary may already have been deducted when calculating company profit, while dividends may distribute profits shown elsewhere in the accounts.
We review the records so the same earnings are not counted more than once.
Can Profits Retained in the Company Be Considered?
Some lenders consider eligible company profits beyond the salary or dividends you receive personally.
This depends on factors such as:
- Your ownership and access to profits.
- Current and previous business performance.
- Company debts and tax commitments.
- Working capital requirements.
- The lender’s assessment policy.
A retained earnings balance can include profits from earlier years. It does not automatically establish current income available to meet personal mortgage repayments.
We work through the financial records to identify what can be supported and assessed.
Shareholding, Co-Directors and Associated Entities
Your ownership percentage and the rights of other shareholders can affect which company profits a lender accepts.
Where several companies or trusts are involved, the lender may need to understand the relationships between them and how income reaches you.
We review the relevant entities, ownership, distributions and financial commitments.
This helps establish a clear picture of the income supporting your application and any obligations connected to it.
Allowable Add-Backs
Some lenders consider adjustments to business profit for eligible expenses.
These may include depreciation, verified non-recurring costs and certain financing expenses, subject to lender policy.
Each adjustment needs an explanation and supporting evidence. An expense being tax-deductible does not automatically make it an acceptable lending add-back.
We review potential adjustments alongside the business accounts, existing commitments and any income already included in the assessment.
Director Loans, Drawings and Cash Transfers
Transfers from a company account can represent salary, dividends, loan repayments or money borrowed from the company.
The transaction’s purpose matters.
A lender may need to understand the director loan account, any amount owed to the company and whether payments are recurring income or another type of transfer.
Your accountant can clarify how these amounts are recorded and their tax treatment. We use that information to support the lending assessment.
Business Debts, Guarantees and Tax Commitments
Business obligations can affect your personal borrowing position.
Relevant commitments may include:
- Business loans and overdrafts.
- Equipment finance and leases.
- Personal guarantees.
- Company or personal tax liabilities.
- Director loan balances.
- Existing property loans and credit facilities.
Lenders differ in how they assess these obligations.
We review who is responsible for repayments, how the commitments are being met and what evidence is needed to explain the position.
Growing, Variable or Recently Changed Income
A recent increase in profit, a weaker trading year or a change in business structure can affect the assessment.
Lenders may use different methods to evaluate income history and sustainability.
Current BAS, management accounts and business bank statements may help explain changes, although their acceptance depends on the lender and assessment pathway.
If you have moved from employment into business ownership, or changed from a sole trader to a company, we review the operating history and continuity behind the change.
Standard, Simplified and Alternative-Documentation Options
Directors may have several ways to verify income.
| Assessment pathway | Evidence that may be required |
|---|---|
| Standard financial assessment | Personal and company tax records, financial statements and supporting income information |
| Simplified bank assessment | A reduced document set for applicants meeting specific salary, income or business-history criteria |
| Alternative-documentation assessment | Acceptable BAS, business bank statements, accountant evidence and declarations, as required by the lender |
Reduced documentation still involves an assessment of income, commitments and repayment capacity.
We compare the evidence accepted, eligibility requirements, costs and loan features before recommending an option.
One Year of Financial Records and Your Trading History
Some lenders assess eligible applications using the latest financial year’s records.
That does not necessarily mean a business with only one year of trading will qualify. A one-year document requirement may still involve a longer operating history.
We check both the financial records required and the minimum business-history conditions.
This distinction is particularly relevant if you have recently established a company or changed your business structure.
Documents Commonly Required
Your checklist will depend on the assessment pathway and business structure.
| Personal information | Company and business information |
|---|---|
| Identification | Company and ownership details |
| Personal tax returns and notices of assessment | Relevant company tax returns |
| Payslips or ATO income statements | Profit-and-loss statements and balance sheets |
| Evidence of salary or dividend receipts | BAS and business bank statements |
| Existing loan and credit statements | Business debt and guarantee details |
| Deposit or equity evidence | Relevant trust or associated-entity records |
| Household income and expenses | Accountant clarification where required |
For an initial discussion, tell us how you receive income, how long the business has operated and which financial records are available.
We can then identify what is needed for a detailed review.
Purchasing, Investing or Refinancing
Buying a home
We assess borrowing capacity, deposit requirements and the supporting income evidence before you commit to a purchase.
Purchasing an investment property
We review your personal and business income alongside existing property commitments and the proposed investment.
Refinancing or accessing equity
We assess the existing loans, intended use of funds, current financial position and the costs and conditions of a new facility.
Available options depend on your circumstances, the property and lender assessment.
Deposit, Borrowing Capacity and Loan Costs
Your director status does not set a single deposit requirement or borrowing limit.
The lender considers the loan-to-value ratio, property, verified income, expenses, liabilities and the assessment pathway.
Loan-to-value ratio compares the loan amount with the lender’s accepted property value.
We review the proposed loan alongside purchase or refinance costs, interest rates, fees and relevant features such as offset accounts or repayment flexibility.
Where alternative-documentation lending is considered, we explain how its pricing and conditions compare with other suitable options.
Working With Your Accountant
With your authority, we can work with your accountant to clarify:
- The company and ownership structure.
- How income is recorded and distributed.
- Potential adjustments to business profit.
- Recent trading changes.
- Business liabilities and director loan accounts.
Your accountant provides the accounting and tax context. We use the supporting information to prepare the lending submission and address lender questions.
How We Approach Your Home Loan
Understand the requirement
Confirm whether you are purchasing, investing or refinancing, along with the amount required and timeframe.
Review your income and commitments
Assess your personal position, relevant company finances and available documents.
Identify suitable lenders
Check the assessment pathways and policies relevant to your structure.
Compare the options
Explain suitable loan features, costs, conditions and any further evidence required.
Manage the application
Prepare the submission, coordinate lender questions and guide you through approval and settlement requirements.
Our Brisbane and Sydney teams assist company directors with home-loan enquiries across Australia.
Company Director Home Loan FAQs
Potentially. Some lenders may consider eligible dividends or company profits alongside salary. Acceptance depends on ownership, business performance, supporting evidence and lender policy.
Sometimes additional evidence is required. The lender may consider your ownership and control of the company, the income being relied upon and whether you qualify for a simplified assessment.
Directors may qualify for standard owner-occupied or investment home loans. The income assessment and supporting documents are important parts of identifying suitable products.
Yes, a joint application can be assessed. The lender reviews the applicants’ accepted income, expenses and commitments, including the evidence required for your company-related income.
We can review the reason for the decline, the financial records and the proposed loan before assessing other options. A different lender may apply different criteria, but approval depends on the full application.
Some directors qualify for standard bank pricing. The rate and fees depend on the lender, product, security, loan size and assessment pathway. Alternative-documentation options can have different pricing and conditions.
Discuss Your Company Director Home Loan
Tell us what you want to finance, how you receive income and which financial records are available.
We’ll review your personal and company financial position, identify the information needed and assess suitable lending options.
Call: 0451 973 662 Email: enquiries@thebrokerage.au
Lending is subject to assessment, approval and lender conditions.