SELF EMPLOYED LOANS
SELF EMPLOYED LOANS
Educate, Facilitate, Accelerate
At Loan Theory, we make securing a home loan when you are self employed straightforward and achievable. Whether you run your own business, freelance, consult or have a combination of income sources, we understand the unique challenges you face when applying for finance.
We work with over 30 lenders and have access to more than 200 loan products, so we can match you with a self employed home loan that suits your income structure, business performance and long term goals. Every lender has different requirements for financial statements, tax returns and income verification. We know what each lender is looking for and can help present your application in the strongest way possible.
Self employed loans can be suitable for:
-
Small business owners – From sole traders to company directors
-
Freelancers and contractors – Project based or irregular income
-
Partnerships and trusts – Complex structures and varied income sources
-
Newly self employed – Limited financial history but strong current performance
We will help you prepare the right documentation, explain how lenders assess self employed income and work with you to position your application for the best outcome. This can include using the most recent year’s financials, add backs for non cash expenses and alternative verification methods where available.
Our process is simple. We start by understanding your business, your income patterns and your goals. We then present clear loan options so you can choose with confidence. We manage the application from start to finish, liaising with your accountant if needed, and keep you updated every step of the way.
Once your loan settles, we will continue to review it regularly to ensure it remains competitive and suitable as your business grows and evolves.
With Loan Theory, you are not just getting a home loan. You are getting a lending partner who understands self employed borrowers and is committed to helping you achieve your property and business goals.
COMMON SELF EMPLOYED LOAN QUESTIONS
Here to answer all of your questions
What is your situation? What loan product is right for you? We have over 30 lenders, with over 200 different products. Not everyone is the same, not every loan is the same. Request a call today about your situation.
Can I get a home loan if I am self‑employed?
Yes. Being self‑employed does not stop you from getting a home loan. Many lenders work with business owners, sole traders, contractors and freelancers. The key is showing consistent income and providing the right financial documents to prove your ability to repay the loan.
How long do I need to be self‑employed before I can get a loan?
Most lenders prefer you to have been self‑employed for at least two years. However, some lenders will consider applications with only one year of self‑employment if you have a strong financial history, relevant industry experience or were previously employed in a similar role. No matter your current time self-employe. Chat with Loan Theory to discover your options.
What documents will I need to provide for a self‑employed home loan application?
You will usually need your most recent personal and business tax returns, notices of assessment from the ATO, and sometimes business activity statements (BAS). Lenders may also request profit‑and‑loss statements and balance sheets. If you apply for a low‑doc loan, you may be able to provide alternative documents such as BAS statements, an accountant’s declaration or bank statements
Do I need two years of tax returns to apply?
Most lenders prefer to see at least two full years of trading financials, including personal and business tax returns, as it gives them a clear picture of your income stability. However, working with a broker opens up far more options. We have access to lenders who will consider applications with only one year of financials, and in some cases even less, provided you meet their criteria. This flexibility can make it possible to secure a home loan sooner rather than waiting for two full years of trading history.
Can I get a loan if my income varies from month to month?
Yes. Lenders will typically look at your annual income rather than month‑to‑month fluctuations. They will use your tax returns or BAS to work out an average income that reflects your true earning capacity.
Are there low‑doc or alt‑doc loan options for self‑employed borrowers?
Most lenders use your taxable income from your personal and business tax returns. Some will also add back certain deductions, such as depreciation or one‑off expenses, to reflect your true income. This is why working with a broker is important — we can identify lenders who take a more generous view of your earnings.
Will lenders use my gross income or taxable income to calculate my borrowing capacity?
This is determined based on your free cashflow. A calculation of your net income against your expenses. Talk to us to discuss your borrowing capacity
What if my most recent year’s income is lower than the year before?
Some lenders will use the lower year’s income to be conservative, while others will average the two years. If there’s a valid reason for the drop — such as reinvesting into your business — we can explain this to the lender to help your case.
Can I use company profits or retained earnings as part of my income assessment?
Yes, some lenders will include company profits and retained earnings if you are the business owner and can access those funds. This can improve your borrowing capacity, but policies vary between lenders.
Do I need to pay a higher interest rate because I am self‑employed?
Not necessarily. Many self‑employed borrowers qualify for the same competitive interest rates as PAYG employees. However, if you apply for a low‑doc loan or have a more complex financial situation, you may pay a slightly higher rate due to the perceived higher risk for the lender.