Self Employed Home Loan

  • Most lenders require the borrowers to be self employed for at least 2 to 3 years. However, some lenders may consider 1 year self employed. It is unlikely that the lenders will provide loans to the borrowers who have been self employed for less than 1 year. The reason being is that the borrowers have been self employed for less than 1 year would have more financial uncertainty.
  • If you have been self employed between 1 – 2 years, some lenders may approve your loan because you have been in the same industry for some time and you can provide 1 year financial statements for the business.
  • In the lenders’ opinion, self-employed borrowers have a higher risk due to their income is not stable. Different industries may also affect the lenders’ decision.
  • In order to ensure that the tax returns provided will be lodged with the ATO, the credit officers would require the tax returns to be signed, certified and backed up by a tax assessment notice. Once you ticked the above requirements, they will then look at the taxable incomes in the last 2 years and add back the expenses such as interest expenses and depreciation. Depending on the nature and the size of your business, more documents may be required.

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