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If you're self-employed in Australia and looking for a home loan, there are a few things you have to know. The first is that you have to provide proof of income. The second is that you may just be required to pay a higher interest rate.

The good news is that there are certainly plenty of lenders who are willing to offer self-employed home loans. So, if you do your research, you should be able to find a loan that suits your needs. Several factors must still be considered as well, such as:

1) Years of Experience

The number of years you have been self-employed will play a role in the amount of money you can borrow. The reason for this is that the lender needs to see evidence of a stable income in order to approve an applicant's mortgage.

If you've been self-employed for quite some time, this will show the lender that you are making enough money to repay your loan. However, if you have only been self-employed for a short time, it can limit your options as a lender worries about your ability to make regular repayments.

2) Available Mortgage Options

Many different types of mortgages are available for self-employed applicants, so it is important to shop around. The most popular option is a standard variable rate mortgage, which will offer you a flexible repayment schedule.

If you are looking for a more competitive interest rate, you may want to consider a fixed-rate mortgage. This type of mortgage offers a set interest rate for a period of time, usually between one and five years.

3) Chosen Lender

It is paramount to choose a lender that offers a flexible approach to self-employed applicants. Some lenders require a certain length of time in business and will not accept self-employed applicants with less than two years of history.

Other lenders will require a larger deposit from self-employed applicants or will place stricter conditions on loans. It is important to research your options and compare different lenders before making a decision.

4) Tax Returns

Lenders will require tax returns to assess your financial situation. It is rather important to ensure that you have filed your tax returns for the previous two years in order to be eligible for a home loan.

Suppose you have not filed tax returns for the previous two years. In that case, there may be limits. However, you can still apply for a home loan if you can provide alternative documentation, such as an accountant’s letter or business financials.

5) Add-backs

Add-backs are income sources that are added to your salary and can include rental income from investment properties, overtime, commissions and bonuses. These sources of income can be added to your salary when a lender is assessing your ability to make loan repayments.


Self-employed home loans can be a great way to purchase your very own property, but it is important to do your research, find the right lender, and offer proper documentation to find the best deal. Speak to a mortgage broker to get started.

Looking for self-employed home loans? Wealthy You is an Australian mortgage company servicing Sydney for almost a decade, offering a variety of mortgage solutions to meet your specific financial needs. Get in touch with us today!