HOME LOANS FOR
SELF-EMPLOYED
Everyone says it's hard to get a home loan when you're self-employed... Not at LendAU.
Accessing home loans as a small business owner or contractor isn't always straightforward. Most lenders want to see stable employment history, making it challenging—but not impossible—for self-employed applicants to secure financing.
While self-employment offers freedom and flexibility, it often comes with irregular income. There may be busy periods followed by quieter times, making regular loan repayments seem risky to traditional lenders.
If you're still struggling, reach out
What Qualifies as Self-Employment?
Self-employment in Australia extends beyond small business ownership. It includes:
- Gig workers (Uber drivers, food delivery)
- Independent contractors servicing multiple clients
- Freelancers and consultants
- Business owners with or without employees
You can even be both self-employed and employed simultaneously, such as working a regular job while running a side business.
Tax Benefits for Self-Employed
When you're self-employed, you may access a broader range of tax deductions. Many costs directly related to earning your income qualify as business expenses, from advertising and insurance to work-related portions of vehicles and equipment.
Did You Know?
The entrepreneurial spirit is thriving in Australia. According to the National Skills Commission, over 10.6% of Australia's workforce—approximately 1.388 million people—worked as owner-managers with no employees as of 2021.
Why Self-Employed Loans Present Challenges
Banks and lenders primarily value stability—and fluctuating income streams can represent risk. While PAYG employees might need just one payslip for approval, self-employed applicants face more scrutiny:
List of Services
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Additional DocumentationList Item 1
Self-employed applicants must submit significantly more paperwork than traditional employees to prove financial stability.
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Income Verification HurdlesList Item 2
You'll need to demonstrate not only current stable income but also future business viability to satisfy lender requirements.
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Higher Deposit RequirementsList Item 3
While standard loans may require just 5-10% deposit, self-employed applicants often need 20% or more to offset perceived risk.
The good news? At LendAU, we specialize in navigating these challenges. With the right documentation and expert guidance, accessing a mortgage as a self-employed person is entirely achievable.
Frequently Asked Questions
Do self-employed borrowers always pay higher interest rates?
Not necessarily. Being self-employed doesn't automatically result in higher interest rates. Higher rates typically only apply if you don't have sufficient documentation for a "full doc" loan and must use the low-doc route.
Can I refinance to a standard loan later?
Yes! While low-doc loans may have higher initial interest rates, many borrowers successfully refinance to standard home loans in as little as 2-3 years once they've established a stable repayment history.
How do lenders calculate my income as a self-employed person?
Calculation methods vary between lenders. Some use your lowest income figure, others use your most recent tax return, and some average the last two years. Our brokers understand these different approaches and can match you with the most favorable lender for your situation.
What if I've been self-employed for less than two years?
Some lenders will consider applications from those with less than two years of self-employment, particularly if you previously worked in the same industry. Our specialists can identify these lender options for you.
