Self-Employed Home Loans in Carnegie
Running your own business is complicated enough without your home loan application making it harder. The problem most self-employed borrowers hit is that standard bank processes aren’t built for variable income – they look at one year’s tax return, see fluctuation, and say no.
Karthik knows which lenders assess self-employed applications differently – and how to present your income in a way that reflects what your business actually earns.
A recent client story
Jess Okafor had been running a specialty olive oil stall at farmers markets across Melbourne for six years. Business was strong but her income came in peaks and troughs depending on the season, and her tax returns reflected that. Every bank she approached focused on her lowest year and declined her. I found a lender who averaged her income across two years and recognised the consistency of her business deposits. She bought her first home in Murrumbeena six months after she’d given up on the idea.
How it works
30 minute call
We start with a conversation. I’ll ask about what you’re looking to do, how you earn, and where your finances sit – enough to put together a rough picture of your borrowing capacity and what you’d need to settle. You’ll leave with a clear sense of what’s realistic before anything moves forward.
Get Documents
I’ll send you a short list of what I need – usually payslips or tax returns, ID, and any existing loan statements. Nothing excessive at this stage. Once I have them, I handle the legwork.
Find Options
I compare your situation across 30+ lenders and find the best fit for how you earn, what you owe, and which lenders are actually likely to approve. I’ll run you through the options before anything gets submitted.
Apply
Once you’re happy with the recommendation, I prepare and lodge the application. I stay across it until settlement and let you know if anything needs attention.
Who this suits
Sole traders and freelancers – one or two years of tax returns with variable income doesn’t have to mean an automatic decline.
Small business owners – if your business is profitable but your personal drawings are structured to minimise tax, there are lenders who look at the full picture.
Tradespeople and contractors – ABN holders with strong cash flow but limited payslips are a common scenario Karthik works with regularly.
Recently self-employed – some lenders will consider applications with as little as one year of self-employment history depending on the industry and income consistency.
Common questions
How long do I need to be self-employed to get a home loan? Most lenders want at least two years of self-employment history, supported by two years of tax returns and notices of assessment. Some specialist lenders will consider applications from 12 months, and in some cases as little as 6 months. The options narrow as the trading history shortens, but they do exist.
What documents do I need as a self-employed borrower? For a full doc application: two years of personal and business tax returns, notices of assessment, and business financial statements signed by your accountant. BAS statements are also commonly requested. Some lenders will also ask for business bank statements to verify the income declared.
Can a lender use my most recent year’s income instead of averaging two years? Some lenders now offer this, particularly where income has grown significantly. The big banks have moved this way on some products in 2025. It’s particularly useful if your recent year is a much stronger result than the one before. I know which lenders apply which policies.
What is a low doc loan and do I still need one? Low doc loans let self-employed borrowers use alternative income verification – like BAS statements or an accountant’s declaration – instead of full tax returns. They were more common before the royal commission. Most specialist lenders still offer them but they typically come with higher rates and lower LVR limits. Full doc is usually the better path if your tax returns support the income you need.
Can I use my company’s retained earnings or add-backs to boost borrowing power? Yes – a good broker knows how to present add-backs. Depreciation, one-off expenses, and some superannuation contributions can be added back to the income figure the lender assesses. This is one area where a broker who understands self-employed lending makes a real difference versus going direct to a bank.
Do I need a bigger deposit as a self-employed borrower? Not necessarily – LVR requirements are generally the same as for PAYG borrowers if you have the documentation to support full doc. Below 80% LVR, LMI applies the same as for anyone else. Where a larger deposit helps is in opening more lender options when the income documentation is less straightforward.
My bank knocked me back – does that mean I won’t get approved anywhere? No. Banks have rigid credit assessment frameworks and they don’t understand self-employed income well. Specialist and non-bank lenders often look at the same application very differently. A knock-back from your bank is a starting point, not an answer.
Why Loanset?
Karthik is an accredited mortgage broker operating under National Mortgage Brokers (NMB), Australian Credit Licence 391209, Credit Representative 556382. He works with a panel of 30+ lenders including major banks, regional lenders, and specialist financiers. Based in Carnegie, he meets clients in person, by phone, or via video.
I'm here to help
Whether you’re just starting to think about your options or ready to move – reach out.
Find a time that suits you below and let’s chat.
