Self-employed Finance
If you’re finding it difficult to secure self employed finance, The Brokerage can seek unique funding for you to secure your home or investment.
Let us take the stress out of your funding.
At The Brokerage, we help you obtain the necessary funding to move forward with your property journey. Our team is dedicated to finding you a solution that is fast and efficient, and is able to navigate any complex tax structures.
As a self-employed business owner, you are likely have a complex tax structure that can make obtaining loans for property quite challenging. We take the time to understand your current financial situation and to build a strong relationship with your accountant, giving us the best chance of finding a smart solution that cuts through all of these complexities.
Becoming a homeowner or securing a loan as a self-employed individual involves unique challenges and considerations. Self-employed borrowers, including entrepreneurs, freelancers, and business owners, face a distinctive set of circumstances that impact their ability to secure financing, that’s where we can help!
The Benefits of a Finance for Business Owners
The Brokerage are very knowledgeable about the distinct financial environment that freelancers, business owners, and entrepreneurs must manage. Because of their experience, they are able to help self-employed borrowers navigate the complexities of the loan application procedure and make sure that lenders are fully informed about their unique situation.
Our financial brokers collaborate extensively with independent contractors to comprehend their income fluctuations, company setup, and financial status. From there we can suggest and negotiate loan options that address the unique requirements and difficulties faced by independent contractors, like irregular income trends, thanks to this individualised approach.
One of the primary challenges for self-employed borrowers is providing documentation that accurately reflects their income stability. Finance brokers help borrowers overcome this obstacle by assisting them in creating thorough financial records that demonstrate their creditworthiness to lenders, such as profit-and-loss accounts, balance sheets, tax returns, and other appropriate documents.
Strategies for Self-Employed Borrowers
- Accurate Financial Records: Maintaining accurate and up-to-date financial records, including profit-and-loss statements and business tax returns, is crucial for self-employed borrowers. Some lenders offer alternative documentation loans that require less traditional income documentation, providing more flexibility for self-employed individuals.
- Proactive Financial Management: Self-employed borrowers should proactively build and maintain a strong financial profile by managing debts responsibly, improving credit scores, and implementing financial strategies. Building a solid financial foundation enhances the likelihood of loan approval and favourable lending terms, contributing to the long-term success of self-employed individuals.
Smart Self-Employed Borrower Solutions
We take the heavy lifting off your shoulders and use out-of-the-box thinking to find a solution that is quick, efficient, and competitively priced.
- We have built strong relationships with banks, allowing for direct access to credit with faster turnaround times.
- We can ask lenders before we submit applications to dramatically reduce rejections
- Have access to innovative solutions through existing relationships with both mainstream and non-mainstream lenders.
Smart Self-employed Borrower Solutions
We take the heavy lifting off your shoulders and use out-of-the-box thinking to find a solution that is quick, efficient, and competitively priced.
- We have built strong relationships with banks, allowing for direct access to credit with faster turnaround times.
- We can ask lenders before we submit applications to dramatically reduce rejections
- Have access to innovative solutions through existing relationships with both mainstream and non-mainstream lenders.
Related Experience
Most lenders assess self-employed income using the last two years of personal and business tax returns, along with notices of assessment from the ATO. Some lenders average the two years of income, while others use the lower of the two. If your income has been growing, this can work against you with some lenders. We identify lenders whose assessment method best suits your income pattern.
Yes, though options are more limited. Some lenders will consider applicants with one year of self-employment history, particularly if you were previously employed in the same industry. There are also low-documentation loan products that may be suitable if you cannot provide full financial statements. We assess your specific circumstances and match you with lenders who can accommodate them.
A low-documentation loan is designed for borrowers who cannot provide standard income verification such as tax returns. Instead, you may be able to self-declare your income, supported by a letter from your accountant or BAS statements. Low-doc loans typically come with higher interest rates and lower loan-to-value ratios. We help you weigh this option against full-doc alternatives to determine the best fit.
It can, depending on how your income is structured and which lender you use. Self-employed borrowers who retain profits in their business, pay themselves a lower salary, or have variable income from year to year may find their assessed borrowing capacity is lower than expected. We work with you to present your income position in the most accurate and favourable light and to identify lenders whose policies work in your favour.
Yes. Self-employed borrowers can access the same range of home loan products as PAYG applicants, including owner-occupied and investment loans, fixed and variable rates, and high-LVR options. The key difference is how your income is verified. Most lenders require two years of personal and business tax returns to confirm a stable income history. We work with a broad lender panel — including those with more flexible policies for self-employed applicants — to find the right fit for your situation.
For a full-doc application, lenders typically require: last two years of personal tax returns and ATO notices of assessment, last two years of business tax returns and financial statements, current business registration documents (ABN/ACN), and recent business bank statements. Some lenders also require a letter from your accountant. If you can’t provide full financials, alt-doc options may be available using BAS statements, accountant declarations, or business bank statements instead.
Alt-doc (alternative documentation) loans are designed for self-employed borrowers who cannot provide standard tax returns — for example, those who are newly self-employed or whose financials don’t reflect their actual income. Instead of tax returns, lenders accept alternative proof of income such as 6–12 months of BAS statements, business bank statements, or an accountant’s income declaration. Alt-doc loans typically carry a slightly higher interest rate and lower maximum LVR than full-doc loans, but they provide an important pathway for borrowers who don’t fit standard criteria.
Most lenders require at least two years of self-employment history with two years of tax returns to demonstrate stable income. Some lenders will consider applicants with 12 months of self-employment history under certain conditions — for example, if you transitioned from the same industry as an employee, or if your income is supported by strong business financials. Newly self-employed borrowers with less than 12 months of trading history may still have options through specialist lenders.
Lenders typically use your taxable income as declared in your personal tax returns, averaged over two years. Some lenders also add back certain non-cash deductions (such as depreciation) to arrive at a higher assessable income figure. For company or trust structures, the lender may assess the business’s net profit and your director’s salary or distributions. We know which lenders take the most favourable approach to your specific income structure and ensure your application is packaged to reflect your true earning capacity.
Yes. Self-employed borrowers can borrow up to 95% LVR (with Lenders Mortgage Insurance) on a full-doc application, just like PAYG applicants. Some lenders also offer LMI waivers for self-employed medical professionals and certain other occupations. Alt-doc loans generally have a lower maximum LVR — typically 70–80% depending on the lender. We assess which lenders will offer you the highest LVR based on how your income is verified.
Yes. Whether you operate as a sole trader, partnership, company, or trust affects how lenders assess your income and who the borrowing entities need to be. Sole traders are generally the most straightforward — income is reported directly on your personal tax return. Companies and trusts are more complex, as lenders need to understand the flow of funds to you personally. We are experienced across all business structures and know how to present each scenario to the right lender.
On a full-doc application, self-employed borrowers access the same rates as any other borrower — there is no rate premium simply for being self-employed. Alt-doc loans do typically carry a slightly higher rate (0.2–0.5% above standard) to reflect the additional income risk. However, we work with lenders who offer competitive alt-doc pricing, and in many cases the rate difference is small. We always model the total cost of the loan — not just the rate — to ensure you’re getting the best overall outcome.
Contact The Brokerage
If you are a self-employed business owner looking to secure finance to open up exciting new investment possibilities, reach out to the team of professionals at The Brokerage. To find out how we can help, contact our team on 0451 973 662.
