Services / Self-employed
Same borrower, same tax returns, can borrow 30–50% more at one lender than another. Self-employed is the file shape where lender choice matters most — because each panel lender averages income differently, treats add-backs differently, and sets a different ABN-trading minimum. The right lender on the day is a structural decision, not a rate decision.
The self-employed borrowing capacity calculator takes your two most recent years' net profit, applies each panel lender's actual averaging methodology and add-back policy, and shows you the borrowable spread across the panel — typically a $300k–$500k gap between the strictest and the most generous, on identical returns.
Run the self-employed calculator →Take a sole-trader file with $250,000 net profit FY24 and $180,000 FY25 (a real shape — strong year then partial-year softening). Run the same return pack through the panel and the assessable-income number a lender will lend against varies by $70,000:
Macquarie's lower-of-two methodology = $180,000. NAB Tailored's most-recent shaded to 80% = $144,000. Bankwest's latest-year capped at 120% of prior = $215,000. ING and Westpac's straight average = $215,000. The latest-year reading (ING for the 1-year-acceptable borrower) = $250,000.
At a 7× DTI multiplier that's a spread between $1.01M and $1.75M of borrowing capacity — three quarters of a million dollars, from policy alone, before any rate or product consideration. The file goes to the lender whose averaging rule matches the income shape. Choosing wrong is the most common reason a self-employed borrower is told "you can't borrow that much" when in fact they can.
Self-employed lender selection comes down to four policy levers. The signature insight above covers the first (income averaging); the other three are below. The calculator quantifies all four against your specific file shape.
Lower-of-two (Macquarie default, conservative), latest-year capped at 120% of prior (Bankwest, ANZ), most-recent shaded to 80–85% (NAB Tailored), straight average of two (Westpac, CBA, ING). Same returns, four different answers. The right one depends on whether your income is rising, falling, or oscillating.
Depreciation (non-cash), interest on cleared debt, one-off non-recurring costs, additional super above SGC, motor vehicle allowance, home office. Most mainstream lenders accept the first three; Bankwest is the most generous on the full set; Macquarie is the strictest. Presented well in the accountant letter the assessment uplift is 10–25% on the same return — the difference between approval and decline on tight files.
24 months is the panel standard. ING and Pepper accept 1 lodged return + 2-year ABN. Bankwest and La Trobe accept 12 months in alt-doc scenarios. ANZ's near-prime tier prefers 36 months. A dormant ABN that recently restarted reads as a fresh start — chronological trading on the active business is what counts.
Sole trader is simplest (personal return covers it). Company adds company financials plus director's personal return. Discretionary trust with multiple beneficiaries narrows the list — most non-banks won't write it. Multi-entity flow- through (income across 2+ entities, common for established practices) routes naturally to specialist non-banks: La Trobe, AMP for complex trust, Pepper for alt-doc multi-entity.
Most self-employed lending is full-doc (two years of returns). When the returns aren't ready or under-represent real income, two specialist tiers exist. Both sit at 0.40–1.00% above prime; the trade-off is rate for access.
Prime tier · 5.84–6.50%
Two years of personal + company tax returns, two NOAs. Mainstream pricing. All Big 4, Macquarie, ING, Bankwest, Bendigo, Suncorp, AMP. The path for ~80% of SE files.
Specialist · +0.40–0.80%
Declared income + accountant letter + 6–12 months BAS. Used when returns aren't lodged, business shape has changed, or add-backs make full-doc under-represent income. Pepper, La Trobe, Resimac.
Commercial · +0.50–1.00%
No income evidence at all. Underwritten purely on rental income from a commercial property securing the loan. La Trobe is the cleanest provider; available on commercial files only, max 65% LVR.
The panel routing patterns below are how I sequence SE files before lodging. Each lender page covers the policy detail; this is the broker-floor summary of where each one fits.
| File shape | First-choice lender | Why it fits | Backup |
|---|---|---|---|
| Two years steady, sole trader, clean | Macquarie or ING | Sharp rate, fast turnaround, lower-of-two is fine when returns are stable | Bankwest, Suncorp |
| Latest year strong, prior year weaker | Bankwest | Latest-year-capped methodology rewards the rising income shape; generous on add-backs | NAB Tailored, ING |
| 1 lodged return + 2-year ABN | ING | One of only two panel lenders accepting 1-year SE at prime rates | Pepper Multi-Product (alt-doc near-prime tier) |
| BAS-only, returns not lodged yet | Pepper Money | Alt-doc declared income + accountant + 12 months BAS at 0.40–0.80% premium | Resimac, La Trobe |
| Complex trust / multi-entity flow-through | La Trobe or AMP | La Trobe writes trust files cleanly; AMP's complex-trust desk is the strongest mainstream option | Pepper Specialist |
| Recent credit event + SE | Pepper Money | Specialist credit-rehab tier; clear refi pathway to prime at month 30 | Resimac, La Trobe near-prime |
| $1M+ loan, $300k+ income, professional services | Macquarie | Strong on $1M+ SE PAYG-equivalent files; back-book quiet-reprice signature insight applies | CBA, Westpac BDM look |
| Commercial property as security, no income evidence | La Trobe | Lease-doc at 65% LVR — only clean panel provider; specialist-since-1952 underwriting depth | Resimac commercial |
Enter your two most recent years' net profit, your entity structure, and your add-back categories. The calculator surfaces the panel spread, the winning lender, and the assessable-income number each lender will lend against. It uses the same panel data and policy logic that I apply on every SE file.
Run the self-employed calculator →Both happen because the borrower doesn't realise self-employed lending is a structural decision, not a shopping exercise. Both are recoverable but cost time.
Each lender writes self-employed files differently. The pages below cover the specific policy levers for each — useful before or after running the calculator.
Can a self-employed person get a home loan with 1 year of tax returns?
Yes — at two specific panel lenders. ING accepts a single lodged tax return plus matching NOA plus a 2-year ABN at prime rates. Pepper Multi-Product accepts 1-year SE at near-prime rates (0.50–0.80% premium). Every other mainstream lender requires 2 years.
How do lenders calculate self-employed income?
Four common methodologies. Lower-of-two (Macquarie), latest-year capped (Bankwest, ANZ), most-recent shaded to 80-85% (NAB Tailored), straight average (Westpac, CBA, ING). On a $250k/$180k return pair the spread is $144k to $250k of assessable income.
What add-backs can be applied?
Depends on the lender. Most accept depreciation, interest, one- off costs, additional super, motor vehicle, home office. Bankwest is most generous; Macquarie is strictest. A lender-specific accountant letter is worth 10–25% borrowable uplift.
What is alt-doc lending?
Declared income + accountant letter + 6–12 months BAS, instead of full tax returns. Used when returns aren't lodged or under- represent real income. Available at Pepper, La Trobe and Resimac at 0.40–1.00% premium to prime.
How long do I need an ABN?
24 months is panel standard. ING, Bankwest, Pepper and La Trobe accept 12 months in some scenarios. ANZ's near-prime tier prefers 36 months. Dormant ABNs that recently restarted read as fresh.
Does entity structure matter?
Yes. Sole traders are simplest. Companies require company financials. Discretionary trusts with multiple beneficiaries narrow the lender list — most non-banks won't write them cleanly. Multi-entity flow-through routes to specialist non-banks (La Trobe, AMP).