Business owners often earn more than employees but find it harder to borrow. Income moves around, tax returns are designed to minimise tax rather than show earnings, and business debts sit alongside personal ones.
The good news is that most of the hurdles are predictable. With a bit of preparation, self-employed buyers can borrow confidently and buy without last-minute surprises. This guide covers how lenders look at business owners and what to sort out before you apply. It’s written by Lauren Jones Buyers Agency, a Brisbane buyers agency. Our founder, Lauren Jones, is a licensed buyers agent and Qualified Property Investment Adviser (QPIA) with a background in finance.
How lenders assess self-employed borrowers
- Two years of financials. Most lenders want two years of personal and business tax returns and notices of assessment. Some accept one year if you’ve been in the industry longer.
- Taxable income, not turnover. Lenders work from the income you declare. If you’ve minimised your taxable income, you’ve also minimised your borrowing power.
- Add-backs. Some expenses, such as depreciation, one-off costs and interest on loans being refinanced, can be added back to your income. Policies vary between lenders.
- Rising income helps. A drop in the latest year can lead lenders to use the lower figure.
- Your tax position. Overdue tax returns or an ATO debt without a payment plan can stop an application.
Business debts count too
Lenders look at the whole picture, not just your home loan. Vehicle loans, equipment finance, overdrafts and credit cards held by the business can all reduce how much you can borrow, especially where you’ve given a personal guarantee or the business income supports the application.
That doesn’t mean avoiding business finance. Financing vehicles and equipment can keep cash in the business and protect the deposit you’ve saved. The key is timing and structure. If you’re planning to buy property in the next 12 months, talk to your mortgage broker before taking on new vehicle and equipment finance, so you understand how it affects your borrowing.
Low doc and alternative documentation loans
If your tax returns don’t reflect your current income, some lenders offer loans assessed on BAS statements, bank statements or an accountant’s declaration. They can help newer businesses or those growing quickly. Expect a larger deposit, a higher interest rate and stricter conditions. They’re a tool, not a first choice.
What to sort out before you apply
- Lodge your tax returns. Get the last two years up to date, for you and the business.
- Talk to your accountant about income. Before the end of the financial year, discuss how your tax planning affects your borrowing power.
- Separate business and personal spending. Clean bank statements make assessment easier.
- List every debt. Personal, business, guarantees and credit limits. Close what you don’t need.
- Time big business purchases. New vehicles and equipment can wait until after settlement if they don’t need to happen now.
- Build a cash buffer. Lenders and you both want to see that a slow month won’t put repayments at risk.
- Review your ownership structure. Trusts and companies are treated differently by lenders and by the tax system. A proposed 30% minimum tax on discretionary trust income from 1 July 2028 is another reason to get advice before you buy in a trust.
- Use a broker who knows business owners. Lender policies for the self-employed vary widely.
What it means when you start looking
Once you have pre-approval, buy within it with a buffer. Business income can change during a long search, and lenders reassess before settlement. Avoid new debt between pre-approval and settlement, and keep your accountant and broker in the loop if anything changes.
If you’re buying an investment property, look closely at cash flow. Since the 2026 Budget, losses on established investment properties bought after 12 May 2026 can no longer reduce the tax on your other income from 1 July 2027. A property that pays its own way puts less pressure on your business.
Frequently asked questions
Can I get a home loan if I’m self-employed?
Yes. Most lenders want two years of tax returns, but some accept one year or alternative documentation.
Does business vehicle finance affect my home loan?
It can, especially if you’ve personally guaranteed it or the business income is part of your application. Speak to your broker before you take on new business finance.
What is a low doc home loan?
A loan assessed on alternative evidence of income, such as BAS or bank statements, rather than full tax returns. They usually need a larger deposit and cost more.
Should I buy property in my own name or through a trust?
It depends on your goals, tax position and asset protection needs. Get advice from your accountant before you sign a contract, as changing ownership later can be expensive.
Our View
Self-employed buyers are some of the strongest buyers we work with. They’re used to making decisions, managing risk and backing themselves. What trips them up is usually paperwork and timing, not income.
Get your tax returns lodged, your debts in order and your broker on board before you start looking. Then you can buy with confidence when the right property comes along.
Self-employed and planning to buy in Brisbane? Book a call with Lauren Jones Buyers Agency to talk through your goals and how to get ready. Call 0414 221 741 or visit www.ljba.com.au.
This article is general information only and is current as at October 2026. It isn’t credit, financial, tax or legal advice and doesn’t take into account your objectives, financial situation or needs. Lending policies vary. Speak to a licensed mortgage broker, your accountant and a financial adviser before you act.
