I'm Self Employed

Getting a home loan when you are self employed can be complicated with conflicting advice around lending requirements just the beginning. That is why it is important to find a lender with a range of options for self employed borrowers. They can help you find the most competitive home loan with the features that you need.

Do any of these apply to you?

se professions 1
Trading for two years with financials up to date

If you have lodged your tax returns for the last financial year you will be in the best position to secure some of the most competitive home loans on the market. Two years tax returns will be used to verify your income, but interestingly lenders differ in their treatment of the two years.

se professions 2
Trading for a few years but financials are not up to date

Most lenders want to see current tax returns with the usual cut off being March the following year. This can be difficult depending on your accountants time frame. Loans specifically designed for self employed can look beyond tax returns and allow you to demonstrate your income using other documents you are able to supply.

se professions 3
Business profitability has turned around

The sale of an unprofitable part of your business or gaining a large contract can lead to your business turning around quickly. But it takes a while for the increased profitability to show up consistently in two years tax returns. Having flexible options to prove what you earn now may make a big difference to how much you can borrow.

se professions 4
Trading for a short time

Purchasing an existing business or starting a new business with contracts in place, can mean that even in a short amount of time you have a consistent income. There are lenders that will allow you to use your income for a loan even if you have been self employed for as little as 6 months.

se professions 5
PAYG income to contracting

Often you can earn more by contracting than being employed, but by doing this you may not realise the impact this will have on your ability to get a home loan. Most lenders will not want to use your income until you have lodged two years tax returns but there are options so you don't need to put your life on hold.

How do income documents differ for self employed?

If you have applied for a loan as an employee, you may recall supplying 2 payslips and possibly a payment summary.

For self employed borrowers the traditional requirement is 2 years full tax returns, notices of assessment and financial statements. This in itself is quite onerous and also creates issues.

  • You may get behind with your paperwork and not have lodged your current tax returns

  • They may reflect historical business trading that can be 18 to 36 months prior

  • You may not have been self employed long enough to have two full years trading reflected in the returns

Alternative income verification

If you satisfy the requirement for a loan that doesn't require tax returns, you will need to complete an income declaration. It contains details of the loan you are applying for, business name and industry and an estimate of your current income.

To verify that this estimate is accurate, you then supply other documents to back it up. These include:

  • An accountants declaration confirming that the income you declare is accurate

  • Between 2 to 4 BAS statements to get details of your quarterly sales and purchases

  • Business bank statements for 3 to 6 months that show your income flowing in as well as expenses going out

What lenders look for

  • Consisitency

    Whether it is tax returns or alternative documents above, lenders are looking for positive, consistent trading figures.

  • Steady Growth

    Lenders like to see you income figures increasing over time with no dramatic fluctuations from year to year.

  • Realistic Estimates

    The alternative documents show a sales figure without all the expenses deducted. Lenders calculate an annual sales figure from these and apply a net profit percentage in order to get an estimate of what the net income figure might be. This is compared to your estimate to determine if it is realistic.

How we can help

Our experienced Lending Specialists understand lending for self employed borrowers. They can discuss your options at a convenient time and help find a home loan that suits you.

They can also assist with applying and make the process simple and straightforward. Best of all they will keep you updated so you know what is happening.

Self Employed Home Loan Options


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Why Choose State Custodians?

  • Online Expertise

    We can help navigate home loan solutions with access to a range of specialised self employed options

  • Quick Response

    From a quick question to a detailed discussion, no need for appointments, just phone, email or Live Chat

  • Personalised Service

    A dedicated Lending Specialist can do the hard work for you, from exploring options to simplifying the process

  • Quality Assured

    We hold a full credit licence and are a member of the MFAA and the Credit & Investments Ombudsman



Very, very impressed

Dealings in the initial stages was great - quick/prompt/friendly service - fast application turnaround. And once approved, went over and beyond for me. Took the time to explain the products and also to understand my situation and financial goals. This is rarely seen in the financial lending world....! Great service - very very impressed.

Nunawading, VIC

Terrific customer service

Despite the complexities of our situation, the team has shown terrific customer service in handling our numerous tasks and ensuring we are able to meet our timeframes. Please pass on our thanks, we look forward to a smooth settlement and financial arrangement with your organisation.

Drummoyne, NSW

Couldn't be happier

Amazing staff who were very patient and replied quickly to all calls and emails. Some companies we contacted took days to return calls but I need waited more than half an hour with State Custodians. Loan was processed quickly with no hassles. Rates are great and low fees. Couldn't be happier with the whole process.

Murrumbeena, VIC

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