Self-Employed Home Loans

Knocked back by your bank? That usually isn’t the end of it.

Banks assess self-employed income in different ways. One lender might average your last two years of tax returns. Another might use only the most recent year, or add back depreciation, interest and one-off expenses. A third might accept BAS statements or an accountant’s letter instead of full financials.

So a “no” from your bank often means that bank’s policy didn’t fit your situation, not that you can’t borrow. Our job is to work out why the application failed and which lenders assess income like yours more favourably, then present your application to them properly the first time.

Fast Funding has been helping Gold Coast business owners since 2009. Director Joe Ghoussain has more than 20 years in finance and handles complex applications personally.

“Not only did he get us approved for a loan when other brokers said it was a difficult case, he also re-negotiated a better rate after 2 years of being with that bank.”
Daniel M., Facebook review

Who we help

• Sole traders and contractors, including tradies, consultants and freelancers with income that changes year to year
• Company directors paying themselves a mix of wages, dividends and director’s fees
• Trust and partnership structures, where income flows through more than one entity
• Newer businesses with one to two years of trading history
• Borrowers declined elsewhere, by a bank or by another broker
• Business owners buying commercial property or restructuring existing loans across entities

“The direction, advice and structure of funding has been second to none… Joe was able to point out potential issues prior to them coming up.”
Andrew B., Google review (commercial property purchase)

Why self-employed applications get declined

Most declines come down to one of these:

1. Taxable income looks too low. You’ve (legitimately) minimised tax, but the lender only sees the net figure.
2. Income dropped or jumped between years. Some lenders average two years, which can drag a strong recent year down.
3. Not enough trading history. Many lenders want two years of tax returns; some accept one.
4. Tax returns aren’t lodged yet, or there’s an outstanding ATO debt.
5. Debts across the business and personally are counted in a way that hurts your borrowing power.
6. The application was sent to the wrong lender for your structure.

Once we know which of these applies, we know which lenders to approach and what evidence to put in front of them.

How we approach your application

1. Find out what went wrong. If you’ve been declined, we start with why. We’ll ask for the lender’s reason (or work it out from your documents) before anything else is lodged. Another failed application leaves another enquiry on your credit file, so we don’t guess.

2. Read your financials like a lender does. We go through your tax returns, financial statements and BAS with you, and with your accountant if needed. We identify which income lenders will accept and which add-backs they’ll allow.

3. Match you to the right lender. We compare lenders’ self-employed policies across our panel of more than 45 lenders, including major banks, regional banks and specialist non-bank lenders. Sometimes a mainstream lender will still suit you. Sometimes an alternative-documentation (low-doc) loan is the better path. We’ll explain the trade-offs in rates and fees either way.

4. Package it properly. We put together your application with a clear explanation of your business and income, so the credit assessor doesn’t have to guess.

5. Manage it through to settlement, then review your loan later. When your next tax return lodges, you may qualify for a sharper rate.

Full-doc vs low-doc: which applies to you?

Every lender’s criteria differ and change regularly. This table is general information, not a guarantee of eligibility.

What to have ready

• Last two years of personal and business tax returns and notices of assessment (or whatever has been lodged)
• Business financial statements (profit & loss and balance sheet)
• Recent BAS statements
• Business and personal bank statements
• Details of all debts, including business loans, car and equipment finance, and credit cards
• Your accountant’s contact details

Missing some of these? Talk to us anyway. Part of our job is working out what’s actually needed.

Example: from $850,000 to $1.15 million

A self-employed client was referred to us by his accountant. He’d already been to two other lenders, and both had told him the most he could borrow was $850,000.

When we went through his tax returns and financial statements, a couple of expense items stood out. It wasn’t clear what they were, and they were reducing the income the lenders could use. One phone call to his accountant answered it: they were one-off costs that wouldn’t happen again.

We asked the accountant for a letter setting out what the expenses were and confirming they weren’t recurring. With that letter in the application, those costs could be added back to his income. He was approved to borrow $1.15 million, $300,000 more than the other lenders had offered.

His income hadn’t changed. What changed was how clearly it was explained to the lender.

Frequently asked questions

Can I get a home loan if I’ve only been self-employed for a year?

Yes, with some lenders. A number of lenders will consider one year of trading history, particularly if you worked in the same industry beforehand. Your options are narrower than with two years, so matching you to the right lender matters more.

My bank declined me. Will another application hurt my credit score?

Every formal application can be recorded as an enquiry on your credit file, and several in a short period can count against you. That’s why we work out why you were declined and choose the right lender before anything is lodged.

What is a low-doc loan?

A low-doc (alternative-documentation) loan lets you verify income with documents such as BAS statements, business bank statements or an accountant’s declaration instead of full tax returns. Rates are usually higher than full-doc loans, and lenders typically require a larger deposit. Low-doc isn’t automatically the right answer. If a full-doc lender will accept you, that’s often cheaper.

Do lenders use my gross business income or my taxable income?

Usually your taxable income, plus certain add-backs. Depending on the lender, these can include depreciation, interest on business loans being refinanced, superannuation above the compulsory amount and one-off expenses. Which add-backs are allowed varies a lot between lenders.

Can you help if I own property through a company or trust?

Yes. Loans involving companies, trusts and multiple entities are a large part of what we do, including commercial property purchases.

Do you charge a fee?

No. There’s no fee for our service. We’re paid by the lender when your loan settles, and we’ll explain how that commission works before you proceed.

Talk to Joe

If your bank has said no, or you’re self-employed and not sure where you stand, call (07) 5538 8334 or book a time with Joe. We’ll tell you honestly what your options look like before you lodge anything.

The information on this page is general in nature and does not take into account your objectives, financial situation or needs. Lending criteria, fees and charges apply, and all loans are subject to lender approval. Fast Funding (Australian Credit Representative Number 397509) is a Corporate Representative of BLSSA Pty Ltd (Australian Credit Licence 391237).