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Contractor lending, self-employed income assessment, loan structuring, and other topics to help you understand your options 

A contractor decline is rarely about how much you earn. It's much more often about how that income gets read, and by which lender. This article covers the most common reasons contractor applications get declined and how each one can be avoided by presenting your situation correctly from the start. This sits within our broader guide to contractor home loans, which covers how PAYG and ABN income is assessed more generally. Income assessed against the wrong reference point The s

Sole Trader, Company or Trust: Does Structure Affect Borrowing? Two business owners can report the exact same net profit and still walk into very different borrowing outcomes. The difference often isn't the business, it's the structure sitting around it. A sole trader's profit is unambiguously theirs. A company's profit belongs to the company, until ownership is taken into account. A trust's income depends on who it's distributed to, and how. Why your business structure

If you've read our self-employed home loans overview or our article on full-doc versus low-doc lending, you'll already know the core problem: good tax planning can make your assessable income look smaller than your real earning capacity. Add-backs are one of the main tools lenders use to close that gap, but they only close part of it. Understanding what actually qualifies as an add-back, and what doesn't, is often the difference between an accurate borrowing capacity estimate

Most self-employed borrowers assume there's one proper way to get a home loan, and a fallback option for people who can't quite make the cut. That's not really how it works. Full-doc and low-doc are two different sets of evidence for the same underlying question a lender is trying to answer: can you service this loan. Which one applies to you depends on what your paperwork can demonstrate right now, not on how "qualified" a borrower you are. If you haven't already, it's worth

A breakdown of what documents PAYG and ABN contractors need for a home loan application, so you're not caught out partway through.

Two contractors can do near-identical work, invoice the same client, and earn the same income… and still get very different answers when they apply for a home loan. The difference usually comes down to how they're paid, not how much. Here's what separates a PAYG contractor from an ABN contractor in a lender's eyes, and why it matters before you apply. Why this distinction matters more than your income Lenders don't just look at how much you earn. They look at how provable and

Once a loan settles, the focus usually shifts to repayments and day to day finances. The loan contract sets out what things look like if nothing changes over the next 30 years. In reality, things rarely stay the same. Income can change, expenses shift, and plans evolve. If your situation does change, the first place to look is your cash flow. Can your current income comfortably support your repayments and living costs. If the change is temporary, a buffer can help bridg

Taking out a home loan is one of the bigger financial commitments most people make. And yet the numbers involved – repayment amounts, total interest, how long it takes to pay off – can be difficult to get a clear picture of before you sign, let alone once you're in the middle of it. That's partly just the nature of how mortgages work. The figures depend on your loan amount, interest rate, repayment frequency, and a range of other variables. Small changes in any one of them

A lot of buyers assume that once they’ve got a loan pre-approval, the bank is locked in. Unfortunately… that’s not necessarily the case. Here’s why: 1. Not all pre-approvals are created equal In some cases, lenders rely on automated assessments upfront, then complete a full credit assessment once you’ve found a property. That means: Key details may only be properly reviewed later Complex or unusual situations might get picked up late You could already be financially committ

Loyalty is something most of us take seriously. We expect it to mean something, whether it’s for a brand we trust, a service provider we’ve stuck with for years, or a bank we’ve been with since our first savings account (how many Dollarmite kids are out there??). At the very least, we expect not to be penalised for staying put. Unfortunately, when it comes to home loans, loyalty often works against you. Why loyal borrowers often pay more Banks and lenders love attracting ne

If you're a contractor, you've probably noticed that getting a mortgage isn't as straightforward as it is for your PAYG colleagues. Here's why (and more importantly, what you can do about it). Lenders love predictability. A salaried employee gives them certainty: same income, same employer, same pay every fortnight. Contractors give them complexity: variable income, multiple clients, gaps between roles, and ABN arrangements that don't fit neatly into their assessment mode

A few weeks ago we added an article that touched on debt recycling, and a number of people reached out wanting to understand what the strategy actually involves. So here’s a short follow‑up to explain the concept in simple terms and help people think about how they’re approaching their home loan. Debt recycling is essentially a way of reshaping the mix of your debt over time. In broad terms, the strategy involves: Paying down your home loan Reborrowing the same amount that

Finding the right property takes time. When you’re juggling work, family, and everything else life throws at you, it can feel impossible to give the search the attention it deserves. For an investment property, it’s less about the “feel” of the place and more about the numbers, the strategy, and whether the asset will genuinely move you forward financially. A skilled buyer’s agent can make a meaningful difference. They can take on the heavy lifting, bring expertise you may no

Banks and non-bank lenders have been quick to pass on this month’s RBA rate increase to home loan customers, but most remain silent on any corresponding rise in savings account interest. If you’ve got a mortgage and also money sitting in a savings account, the gap between what the borrowed money costs and what your own money earns has widened. To make the most of the rate change, consider using your loan’s offset account or redraw facility. These options can help you bene

Every financial decision carries weight. And when things feel uncertain, it’s natural to default to what feels “safe”: pay down debt, build buffers, avoid complexity, and invest if there’s money left over. But here’s the catch - That safety-first mindset can keep you stuck in slow motion. A well‑designed debt recycling strategy isn’t about taking big risks. It’s about being intentional with the money you already earn. When structured properly, it can help you: Pay down ba

A quick reality check on home loan maths - At an interest rate of 5.3%, every $1 you borrow ends up costing you about $2 over the life of the loan. That’s your original dollar plus another dollar in interest. But here’s the part many people overlook: If that same dollar is sitting in your offset account (or paid into your loan as an extra repayment) you’re not charged any interest on it at all. Compare that to the dollar sitting in your bank account earning a lower intere

A 30-year mortgage can feel like a marathon, but it doesn’t have to be. Paying off your home loan faster is a smart financial move. It can save you thousands in interest and bring you closer to financial freedom years ahead of schedule. Effective Strategies to Pay Off Your Home Loan Here are three powerful strategies to help make that happen: 1. Make Extra Repayments Even one extra month’s repayment each year can make a big difference. Over time, this simple habit could cut y

No-one enjoys paying interest, so it’s natural to look for ways to minimise it over the life of your loan. A common question I hear is: Should I make monthly or fortnightly repayments? A recent client was adamant about fortnightly repayments, having heard repeatedly that that would save interest. Let’s break it down with a simple example. The Numbers Loan amount: $500,000 Interest rate: 5.5% Total annual repayments: $36,000 The results: Monthly repayments: Loan paid off i

Securing a home loan as a self-employed person can feel more complex than it should. While you may have strong earnings and a thriving business, lenders often want extra reassurance before approving your application. The good news? With the right preparation, you can present a strong case and access competitive rates. Evidence of income matters Lenders want to see that your income is consistent and reliable. Unlike salaried employees who provide payslips, self-employed

A look at what you can do to reduce the stress of your property purchase by getting pre-approved for finance