Sole Trader Home Loans That See Your Real Income
Your business is thriving, but your tax return tells a different story. Every legitimate deduction reduces the income lenders see, and that shrinks your borrowing capacity. Add-backs fix this. They let lenders count specific deductions back into your assessed income. We compare across 40+ lenders to find the ones that maximise your add-backs and borrowing power.
How add-backs boost sole trader home loan capacity
A sole trader graphic designer earns $131,400 gross but reports $65,200 taxable income after deductions. Her bank offered $391,000 in borrowing capacity based on the lower figure.
With $30,200 in add-backs identified, her assessed income rose to $95,400 and borrowing capacity jumped to $572,000. Not every lender accepts the same add-backs. The right lender match made the difference.
Depreciation on equipment
Non-cash expense. The equipment is already paid for, so it doesn't reduce your ability to service a loan.
Super contributions
You're building retirement wealth, not losing income. Many lenders add voluntary super contributions back in full.
One-off expenses
A website rebuild or major purchase won't recur. Lenders who assess sole traders properly exclude non-recurring costs.
Home office costs
These costs exist whether you have a mortgage or not. Some lenders add back the full claim, others a portion.
More add-backs most borrowers overlook
Business loan interest
If your business loan is close to being paid off or has a fixed term, certain lenders will add the interest deduction back into assessed income.
Motor vehicle expenses
Vehicle costs claimed via the logbook method can be partially added back. The expense doesn't disappear if you stop claiming it.
Travel and training
Industry conferences, courses, and travel that won't recur at the same level. Some lenders treat these as discretionary rather than ongoing.
How sole traders are assessed differently
Sole trader home loan requirements differ from other structures because everything sits on your individual tax return. That's simpler than a company or trust, but it also means your deductions hit harder. When you apply as a sole trader, the right broker can achieve strong outcomes without the cost of restructuring.
| Services | Sole Trader | Company Director | Trust Beneficiary |
|---|---|---|---|
| Income reported on personal tax return only | |||
| Add-backs applied directly to individual income | |||
| Requires separate business financial statements | |||
| Income split across salary, dividends, or distributions | |||
| Simpler application with fewer documents | |||
| 2 years of tax returns required by most lenders | |||
| Wider range of lenders comfortable with the structure |
What you need to apply as a sole trader
The documentation list is longer than a PAYG application, but manageable when you know what to prepare. Most sole traders have 80% of this already. Your accountant has the rest.
Your accountant's job is to minimise tax. Your broker's job is to maximise how lenders see your income.
01
Gather your documents
You'll need 2 years of personal tax returns with the business schedule, 2 years of ATO notices of assessment, last 4 quarters of BAS, 6 months of business bank statements, and ABN registration details.
02
Identify your add-backs
Your broker reviews your tax returns line by line to identify which deductions qualify as add-backs. Each is assessed against the specific policies of the lenders most likely to approve your application.
03
Match with the right lender
Not all lenders see your income the same way. Your broker compares add-back policies, income calculation methods, and approval criteria across our full lender panel. The difference between the wrong lender and the right one can be $100,000+ in borrowing capacity.
04
Submit with confidence
Your application is packaged with add-back justifications, BAS trading evidence, and a clear income summary for the credit assessor. A well-prepared application reduces back-and-forth and speeds up approval.
05
Settlement
From conditional approval through valuation to settlement day, your broker coordinates with the lender, solicitor, and selling agent. No hidden fees. The costs quoted at the start are the costs you pay.
Recently Switched From PAYG to Sole Trader?
The shift can feel like a step backward for your borrowing power. You finally have the freedom of working for yourself, and suddenly you can't qualify for the same loan you would have gotten as an employee. With 12+ months of sole trading and one full tax return, several lenders can assess your application, especially if you're in the same industry. Under 12 months is harder, but options exist for borrowers with shorter trading history when backed by strong BAS and evidence of industry continuity.
What our customers
say about us
Don't just take our word for it. See what hundreds of satisfied clients across Sydney say about their experience with Stryve Finance.
“Nate and Dylan were extremely helpful in helping us secure our new home. They were easy to contact from day one, and answered any questions we had. We felt reassured at all times and are very grateful for their patience with us. I have recommended Stryve to 3 friends now who have all been successful in achieving their goals of purchasing their homes. We are so happy with the service and will definitely keep on recommending Stryve to our family and friends.”
Whitney Tran
Homeowner
“I never had a problem with Dylan. From the start of our journey on mortgage til the very end and even with refinancing, he/they were very helpful, transparent, honest and really keen to help their clients! Highly recommended.”
Cristianne Del Valle
Homeowner
“On behalf of my husband and I, we would like to truly thank Dylan Bertovic for all his assistance in helping us with our new loan - approved in time before our settlement. Dylan worked above and beyond expected. He took the time to explain every step and process with us. Any questions we had, Dylan would go out of his way to ensure they were answered. He made the process stress free and ensured we got the best possible deal. We highly recommend Dylan to all our family and friends.”
Merna Yalda
Homeowner
“Nate is great to work with, very knowledgeable, responsive and genuinely invested in helping me find the right solution. Highly recommend this firm to anyone looking for reliable, competitive and professional brokerage services.”
Julia
Homeowner
“Dylan has not only been a longtime friend, but also the trusted mortgage broker of choice for my family. He answers the phone at all hours, communicates extensively through all steps of a sometimes-complicated process and manages my risk. He has a straight to the point approach which I appreciate. Simply gets the job done, and gets it done very quickly. Thanks for everything Dylan, you're a champion broker and a good mate.”
Christian Barać
Homeowner
“Nate and Dylan were the ultimate professionals in securing a home loan to help us purchase our first home! Following the purchase of our home, they have continued to provide their exceptional service and have been able to secure two rate reductions in six months! Being self-employed wasn't an issue for me as Nate knew the process back-to-front and was able to provide sound advice throughout the application process.”
Justin Tomas
Homeowner
“It was an absolute brilliant experience with Stryve. Our first purchase was with Dylan he was always clear re: the next steps, quick to respond, never tired of questions and went over and above with communication. We went back and used him again for our next investment and the experience was just as wonderful as the first. Stryve also reviews our loans every 6 months to make sure we are getting the best rates on offer. We couldn't ask for more!”
Amber Motii
Homeowner
Frequently asked questions
Your tax return doesn't tell the full story
A 30-minute conversation with a sole trader specialist will show you which add-backs apply to your situation and which lenders are most favourable for your profile. No pressure, no obligation. Most borrowers leave with a clear number.
See what you actually qualify for