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For self-employed individuals in Australia, getting a home loan can be challenging. This is because lenders typically require proof of a steady income or proof of employment for a certain period. However, someone self-employed can still get a home loan.

If you are planning to get a self-employed home loan, you must ensure that your business has been in operation for a minimum of two years for you to be able to provide lenders with the correct documentation. 

Self-employed home loans require this because the income structure of a self-employed individual is typically not viewed as financially secure compared to those with PAYG employment. For this reason, lenders prefer it if they can get a record of at least two years of your business’ performance to understand better any seasonal changes that your business could be dealing with and determine your income stream and stability. 

But what if you have been self-employed for less than two years? There are still some solutions that you can try if you wish to get a home loan. Here are some tips for you:

Tip #1: Do Not Stress Too Much About Irregular Cash Flow

Self-employed individuals in Australia will likely have irregular cash flow. While there would be weeks when income is good, there would be others when you’d be wondering how you’d be paying off your bills. That said, you shouldn’t focus too much on this problem because lenders look at the total annual income of a self-employed individual instead of their weekly or monthly income. 

Tip #2: Make Sure You Are on Top of Your Tax Returns

The importance of this cannot be stressed enough. Remember that you don’t have a regular payslip like other borrowers, so the lender will look at your formal tax assessment documents to determine and confirm your income. 

Borrowers should present at least two years of tax returns, and if you are still relatively new as a self-employed individual, it’s better for you to wait at least a year before you start applying for a home loan. While you wait for that, focus on saving money for your deposit!

Tip #3: Speak with a Mortgage Broker Early

It’s best to consult a mortgage broker to know the best steps you can take as a future home buyer. The sooner you come up with a plan with the help of a mortgage broker, the faster you’ll be able to work towards your goals. 

Tip #4: Explore Low-Doc Loans as an Option

A low-documentation (low-doc) home loan is a type of loan that self-employed borrowers can consider if they cannot supply the usual proof of income. It’s beneficial for borrowers because it makes use of a simplified income declaration form and involves the use of alternatives to tax returns as a form of income evidence.

You must note, though, that this loan type doesn’t involve submitting less income evidence but rather alternative sources that can prove your income.

As helpful as this may be, you should know that the increased risk that the lender would perceive could result in an interest rate that is also higher than average, as well as more limitations when it comes to the maximum loan-to-value ratio.


Self-employed individuals must take a few extra steps when applying for a home loan in Australia. Applying for a self-employed home loan can be a straightforward process with the right preparation and the four tips outlined in this article. 

Wealthy You is an Australian mortgage company that offers various solutions, including self-employed home loans. Get in touch with our mortgage experts in Sydney who can assist you!