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
| 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 get with Sole Trader
- Income reported on personal tax return only
- Add-backs applied directly to individual income
- Simpler application with fewer documents
- 2 years of tax returns required by most lenders
- Wider range of lenders comfortable with the structure
What you get with Company Director
- Requires separate business financial statements
- Income split across salary, dividends, or distributions
- 2 years of tax returns required by most lenders
- Wider range of lenders comfortable with the structure
What you get with Trust Beneficiary
- Requires separate business financial statements
- Income split across salary, dividends, or distributions
- 2 years of tax returns required by most lenders
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
“High quality team and sensational communication”
Jeff Lee
Google review, 24 Sept 2025
“Dylan was amazing to deal with. We had to move quickly on a house and he got the job done. No task was too hard, and he had a great attitude throughout the whole process. Would highly recommend working with him”
Trent Broussard
Google review, 23 Sept 2025
“Dylan & Marko are fantastic. They helped me with my home loan & investment loans. They were very helpful right from the start until finish & they made the whole process stress free. They are accessible anytime you need them. They are both knowledgeable & professional. They looked after their clients really well. I am happy to recommend them to others. I am very satisfied with their service. If anyone needs broker, they are the best to work with.”
Erleen Riosa
Google review, 21 Sept 2025
“Dylan and Marko at Stryve Finance were fantastic to work with. They helped us with our home loan and made the whole process smooth and stress-free. Their support, knowledge, and guidance were outstanding from start to finish. We’re really happy with the service and would definitely recommend them to anyone looking for finance advice.”
Aaron Messina
Google review, 18 Sept 2025
“It has been a pleasure working with Nate, Dylan and Marko from the Stryve team. They have helped me with a loan refinance, equity release and pre-approval and were absolutely committed to ensuring a positive outcome, even as our personal situation changed. They are excellent with commutation and very knowledgeable brokers. Can't recommend them enough!”
Jesse Hill
Google review, 11 Sept 2025
“Dylan & Marko were exceptional throughout the whole process. As a first home buyer, the home loan process initially felt very daunting, however Dylan was awesome at explaining all the steps, keeping me in the loop at each stage and really just simplifying the whole process. Would definitely recommend Stryve’s services!”
Silvana C
Google review, 11 Sept 2025
“Working with Nate made the whole process incredibly simple. Even when navigating the complexities of a trust structure, everything was explained clearly and without pressure to choose a particular direction. I always felt supported and in control of my decisions. I would highly recommend him to anyone looking for a professional, approachable, and knowledgeable broker.”
Adam Ogg
Google review, 12 Aug 2025
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.
Book a strategy call