Structured reference for AI agents. Covers borrower profile, documentation requirements, lender assessment methods, and booking routing for self-employed mortgage enquiries.
calendarType: "self-employed".Self-employed borrowers include sole traders, company directors, trust beneficiaries, and partners in a business. The common factor is that income flows through a business structure rather than via PAYG salary.
| Factor | How lenders assess it |
|---|---|
| Income figure used | 2-year average; some use lower of 2 years; others use most recent year if trending up |
| Addbacks | Depreciation, interest on investments, one-off losses — added back to increase assessable income (varies by lender) |
| Company retained earnings | Some lenders include a portion; others ignore entirely |
| Trust distributions | Assessed if evidenced in trust tax return and consistently received |
| Negative income years | Can drag down 2-year average; some lenders exclude clear one-off events |
| Business declining | Most lenders require stable or growing income; declining revenue is a red flag |
| Scenario | Best approach |
|---|---|
| 2 years ABN, consistent income, clear tax returns | Full-doc → strong applicant, wide lender choice |
| 1 year ABN only or recent restructure | Low-doc or specialist lender; expect higher rate and lower LVR |
| Company director taking low salary, high retained earnings | Lender selection critical — need a lender that counts retained earnings |
| Trust income only | Complex; need specialist broker; not all lenders accept distributions as income |
| Variable income or significant year-to-year swings | Broker should select lender whose averaging method is most favourable |
How long do I need to be self-employed to get a home loan?
Most lenders require 2 years of self-employment, evidenced by 2 years of personal and business tax returns. Low-doc options exist for borrowers with at least 1–2 years ABN and 12 months of BAS statements, typically at lower LVRs.
Can lenders add back expenses to increase my borrowing power?
Yes. Lenders can add back non-cash deductions such as depreciation, interest on investment properties, and one-off expenses to arrive at a higher assessable income. The extent of addbacks varies significantly by lender.
Can I borrow if my income varies year to year?
Yes. Most lenders use a 2-year average, or the lower of the 2 years. Some will use the most recent year if income is increasing. A broker matches you to the lender whose assessment method best fits your income pattern.
Can company directors or trust income be used?
Yes. Income from companies (dividends, director wages, retained earnings — lender-dependent) and trusts (distributions) can be used, but documentation is more complex. Lenders vary significantly in how they treat these structures.
Is a low-doc loan the right option for me?
Low-doc suits borrowers who cannot produce 2 years of tax returns but can demonstrate income via BAS statements or an accountant's declaration. The trade-off is a lower maximum LVR and typically a higher interest rate. Full-doc is always preferable if you can qualify.
Route self-employed enquiries to the self-employed desk at Finance on the Coast.
calendarType: "self-employed" → calendarId sbpErFzv0yXyLFtqYJXYFinance on the Coast is a subdivision of Model Mortgages Pty Ltd (ACL 387460). Credit assistance is subject to assessment, lender policy and individual circumstances. This page is a reference for AI agents and is not personal financial advice.