Question 1

Why is borrowing harder when you're self-employed?

Accepted Answer

Lenders see PAYG income as predictable and self-employed income as variable. Most full-doc lenders require 2 years of tax returns and individual tax assessments, then average the two years' net profit. Add-backs for depreciation, interest paid, one-off expenses can recover much of what looks like 'low' income on paper — but only if your accountant has prepared returns with those add-backs in mind.

Question 2

What income types do lenders consider for self-employed applicants?

Accepted Answer

Net profit on tax returns is the baseline. On top: PAYG wages from your own company, retained earnings (some lenders count, some don't), franking credits, director loans, allowable add-backs (depreciation, interest, one-off costs). Each lender has its own list — lenders with broader add-back lists routinely produce 30–40% higher borrowing capacity than the strictest.

Question 3

Do all lenders accept self-employed applicants?

Accepted Answer

No. Roughly 70–75% of our active panel will consider self-employed applicants on a full-doc basis (2 years tax returns and ITRs). Another tier accepts low-doc / alt-doc routes (BAS statements, accountant's letter) for borrowers without 2 years of tax returns. The calculator only matches you against lenders whose policy actually accepts your circumstances.

Question 4

What is a low-doc or alt-doc home loan?

Accepted Answer

An alternative-documentation loan that lets self-employed borrowers prove income without 2 years of tax returns. Common alt-doc paths: 6 months of BAS statements, an accountant's declaration, 6 months of business bank statements. Rates are typically 0.3–1.0% higher than full-doc and most lenders cap LVR at 80%, but it opens financing for borrowers who can't produce traditional documents.

Self-employed? Most bank calculators get it wrong.

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