Self-Employed Home Loans: How to Qualify, Apply, and Get Approved

Buying a home while running your own business can feel overwhelming, but self-employed home loans are designed to help entrepreneurs, freelancers, and contractors step onto the property ladder with confidence.

At Stryve Finance, we specialise in helping self-employed Australians secure flexible home loan solutions that reflect the realities of business income. Whether you're a sole trader, a small business owner, or part of a partnership. We will guide you through the process with expert advice and access to lenders who understand your financial structure.

Why Is It More Challenging for Self-Employed Australians to Secure Home Loans?

Getting approved for a home loan can be more complex when you're self-employed, even if your income is stable and your business is thriving. Most lenders are used to assessing applications based on standard PAYG payslips, but self-employed home loans require a more nuanced review of your financial situation.

Here are the key challenges self-employed borrowers often face:

Irregular or Fluctuating Income:
Unlike salaried employees, self-employed individuals often experience fluctuating income, making it harder to demonstrate consistent earning capacity.
Complex Financial Structures:
Business owners may have intricate financial arrangements, including multiple income streams and deductions, which can complicate the assessment process.
Documentation Requirements:
Lenders usually require extensive documentation to verify income and business viability, which can be burdensome for self-employed applicants.

But here’s the good news: At Stryve Finance, we understand that business owners need flexible, realistic lending solutions. We help you clearly present your financials and match you with lenders specialising in self-employed home loans — so you can buy with confidence.

Your Home Loan Options as a Self-Employed Borrower

When it comes to self-employed home loans, one size definitely does not fit all. As a business owner, sole trader, freelancer, or contractor, you need loan options that consider the unique structure of your income. The good news? Lenders are increasingly offering flexible solutions tailored to the needs of self-employed Australians.

If you're comparing different types of home loans for self-employed borrowers, here’s what you need to know about full-doc, low-doc, alt-doc, and fast-track options.

1. Full-Doc Home Loans

Best for: Self-employed borrowers with consistent income and thorough financial documentation.

A full-documentation (full-doc) loan is the most traditional and widely available option. It requires you to supply a comprehensive record of your income, including:

Two years of personal and business tax returns
ATO Notices of Assessment
Business financials (profit & loss, balance sheet) prepared by a registered accountant
Business Activity Statements (BAS)

💡 Tip: Full-doc loans generally come with the lowest interest rates because they offer the lender a complete picture of your financial situation.

2. Low-Doc Home Loans

Best for: Borrowers with a solid business but limited documentation.

Low-documentation (low-doc) loans are designed for self-employed applicants who can't meet the full-doc requirements. These are ideal if you're looking for low-doc home loans for business owners or have limited formal documentation. These loans accept alternative forms of income verification, such as:

Bank statements showing regular income
BAS statements
Accountant’s income declaration
Self-declared income supported by business activity

⚠️ Note: Low-doc loans may carry slightly higher interest rates or require a larger deposit, but they offer flexibility.

3. Alt-Doc (Alternative Documentation) Loans

Best for: Self-employed individuals in early business stages or with variable earnings.

Alt-doc loans are a hybrid between full-doc and low-doc options. They’re ideal if you’ve been self-employed for at least 6–12 months but don’t yet have full tax returns available. Required documents might include:

Recent business bank statements
Proof of ABN and GST registration
An accountant's declaration of income
Partial tax return history (e.g. one year)

These loans are gaining popularity among start-up founders, side hustlers, and growing businesses.

4. Fast Track Self-Employed Loans

Best for: Self-employed borrowers with strong personal tax returns.

Some lenders offer “Fast Track” options for borrowers who meet simplified criteria such as:

Two years of clean ATO Notices of Assessment
A deposit of 20% or more
Strong credit history

These loans bypass the need for full business financials, offering faster processing times and fewer hurdles.

Choosing the right home loan type as a self-employed borrower depends on documentation readiness, income consistency, and how long you've been operating your business. At Stryve Finance, we’ll help you evaluate your options and recommend the solution that fits your financial story, not someone else’s template

Eligibility Criteria for Self-Employed Home Loans

While being self-employed shouldn't hold you back from buying a home, lenders require more proof that your income is stable and your business is financially healthy. Understanding the eligibility requirements in advance can help you prepare a strong application and avoid unnecessary delays.

Here’s what lenders typically look for when assessing self-employed home loan applications in Australia:

1. Minimum Self-Employment History

Most lenders require you to be self-employed for at least two consecutive years. This proves income stability and business viability over time.
Some lenders may consider applicants with 12 months of trading history, particularly for alt-doc or low-doc loan options.

2. Verifiable Income

You’ll need to demonstrate a consistent income, usually via:

ATO Notices of Assessment (last 1–2 years)
Business financials prepared by an accountant
Bank statements showing income deposits
BAS statements (for GST-registered businesses)

The more complete and accurate your documentation, the better your chances of approval. This helps lenders accurately assess your mortgage eligibility as a self-employed applicant.

3. Good Credit History

Your credit score matters even more when you’re self-employed.
A clean credit report with no recent defaults or overdue debts will improve your borrowing power and access to better rates.

4. ABN and GST Registration

If you're operating as a sole trader, company, or partnership, you'll generally need:

An active ABN (registered for at least 12 months)
GST registration (required for businesses earning over $75,000 annually)

Your business must have an active ABN and may need to be registered for GST depending on your revenue. For details, refer to the ATO’s GST requirements.

5. Deposit Size

Most lenders prefer a deposit of at least 20%, especially for self-employed borrowers.
This lowers your loan-to-value ratio (LVR) and may help you avoid Lenders Mortgage Insurance (LMI).

Some lenders will consider smaller deposits (10–15%) if you have strong documentation and a high credit score.

6. Business Structure & Industry Stability

Lenders may assess your:

Business structure (sole trader vs. company/partnership)
Industry type (e.g. real estate, construction, tech)
Income seasonality or volatility
Number of clients or contracts (for freelancers)

If your business operates in a higher-risk or highly seasonal industry, you may need to provide more robust evidence of financial security.

Not Sure if You Qualify?

Stryve Finance works with a vast network of lenders, including those who understand the realities of self-employed income.
We’ll review your unique situation and help you present a strong application that gets results.

We often work with tradies who have seasonal work and fluctuating cash flow.
Lenders might see that as inconsistent income. We see it as normal — and know how to explain it properly.

Required Documents Checklist for Self-Employed Home Loans

When applying for a self-employed home loan, having the proper documents ready can make or break your approval timeline. Lenders need to verify that your income is stable and your business is financially sound. Still, the exact paperwork required depends on whether you're applying for a low-doc loan, alt-doc loan, or a self-employed mortgage option with full financials.

To help you stay organised, we’ve outlined the most common documents you'll need.

✅ General Documents (All Loan Types)

Identification:
Valid photo ID (e.g., passport, driver's license).
Income Proof:
Personal and business tax returns, ATO Notices of Assessment, BAS, or bank statements.

📌 According to the Australian Taxation Office (ATO), lenders often require your two most recent Notices of Assessment and business tax returns to verify your income as a self-employed borrower.

Depending on the loan type, you may need some or all of the following:

For Full-Doc Loans:
- Personal tax returns (last 2 years)
- Business tax returns (last 2 years)
- ATO Notices of Assessment (NOAs)
- Profit and loss statement and balance sheet (signed by accountant)
For Low-Doc or Alt-Doc Loans:
- Business bank statements (last 6–12 months)
- Business Activity Statements (BAS)
- Accountant’s letter confirming income
- Income declaration form (signed by you)
Business Details:
ABN and GST registration certificates.
Financial Statements:
Profit and loss statements, and balance sheets prepared by a registered accountant.
Liabilities and Assets:
Information on existing debts and assets.
Property Details:
Contract of sale, property specifications, and valuation reports.

Having your documentation well-organised, ideally in digital format (PDFs), can help speed up your loan assessment significantly.

home-loan-approval-process-for-self-employed

At Stryve Finance, we offer a document review service to ensure your submission is complete and lender-ready.

Most self-employed clients are surprised by how quickly we can get conditional approval after reviewing their bank statements and NOAs. Sometimes within 48 hours.

Why Choose Stryve Finance for Your Self-Employed Home Loan?

At Stryve Finance, we understand the unique challenges self-employed individuals face. You need a lender who understands how mortgages for freelancers or contractors really work. Here's how we can assist:

Expert Guidance:
Our mortgage specialists are experienced in handling complex financial scenarios.
Tailored Solutions:
We offer loan options that align with your business structure and income patterns.
Streamlined Process:
Our efficient application process minimizes paperwork and expedites approvals.
Ongoing Support:
We provide continuous assistance throughout your loan term, ensuring your financial needs are met.

Real Client Story

One of our clients, a freelance photographer with an inconsistent monthly income, struggled to get a loan through a major bank. Using BAS and bank statements, we helped her secure an alt-doc loan with a competitive rate — all in under three weeks.

Planning to Build or Renovate?

Are you self-employed and planning to build or renovate?
We offer flexible construction loans tailored to business owners and tradies who want to use their business income to fund major projects.

More Than Just Self-Employed Loans

We also help:

First home buyers
Property investors
Homeowners looking to Refinance or build

Whether you're self-employed or salaried, we have the loan solutions to support your property goals at every stage.

Comparing Stryve Finance with Major Banks

While major banks offer standard home loan products, Stryve Finance specializes in catering to the self-employed, providing personalised solutions that traditional lenders may not offer.

Frequently Asked Questions

Below, we've answered the most common queries to help you feel more confident and prepared on your path to property ownership.

❓ Can self-employed people get a home loan in Australia?

Yes, self-employed people can absolutely qualify for home loans in Australia. The key is showing consistent and verifiable income, even if it doesn’t come as a traditional payslip.

Lenders may ask for:

Business tax returns
ATO Notices of Assessment
Other supporting financial documents

At Stryve Finance, we specialize in matching self-employed borrowers with lenders who understand business income.

❓ What documents do I need for a low-doc loan?

For a low-doc home loan, you typically need alternative forms of income verification, such as:

Business Activity Statements (BAS)
Business bank statements (last 6–12 months)
An accountant’s income declaration
A signed income self-certification form

💡 These loans are ideal for borrowers who may not have full tax returns or want a simpler path to approval.

❓ How do lenders calculate income for business owners?

Lenders generally average your net profit over the past 2 financial years based on:

Tax returns
ATO Notices of Assessment

Some may accept a year-to-date figure if it shows growth. Others use business bank statements or BAS to assess monthly income — especially for low-doc or alt-doc loans.

❓ Can I use my business for a renovation loan?

Yes! Many self-employed borrowers fund property improvements by leveraging their business income.
Stryve Finance offers tailored renovation loan options that allow you to:

Use business income as your primary servicing base
Bundle your home loan with a renovation facility
Secure finance for both structural and cosmetic upgrades

❓ How long do I need to be self-employed?

Most lenders require at least 2 years of continuous self-employment.
However, some may consider applications after 12 months if you have:

A strong business bank account history
Prior experience in the same field
Clear ABN and GST registration

We’ll help you find lenders open to flexible timeframes based on your profile.

❓ How much deposit do I need as a self-employed borrower?

Most lenders prefer a 20% deposit for self-employed applicants to avoid Lenders Mortgage Insurance (LMI).
However, we work with lenders who accept deposits as low as 10%, depending on your:

Credit history
Income documentation

❓ How long do I need to be self-employed to apply?

Most lenders require at least two years of self-employment.
Some will accept 12 months with a strong income record or previous industry experience.
We assess your eligibility across multiple lenders to find the right fit.

❓ Should I use a mortgage broker or go directly to a bank?

A mortgage broker like Stryve Finance gives you access to multiple lenders, not just one bank’s criteria.
We specialise in self-employed loans, so you’ll get advice tailored to your business — not just generic lending rules.

❓ What are the best home loans for self-employed people in Australia?

The best home loan depends on your:

Income consistency
Documentation
Length of time operating your business

Options include:

Full-doc loans
Low-doc loans
Fast-track self-employed options

Stryve Finance can help you compare offers tailored to business owners.

❓ Can I refinance if I’m self-employed?

Yes — refinancing is very possible for self-employed borrowers, and in many cases, it’s a smart move.
We offer refinancing home loan solutions that help business owners:

Reduce interest costs
Access equity
Consolidate debt

For more detailed guidance on income documentation and self-employed obligations, visit the official sites of the ATO, ASIC, or APRA.

⚠️ This article is for informational purposes only and does not constitute financial or legal advice.