How to have a strong home loan application as a self-employed professional

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 professionals need to demonstrate their financial strength through business records.

Tax returns: Your best ticket to competitive rates

For the most favourable rates, lenders typically require tax returns for both your business and yourself.  Traditionally, this means providing 2 years of returns.

However, some lenders are now accepting just the most recent year’s returns, which can be a game-changer if your business has grown significantly in the past year.

Alternative options (at a cost)

If tax returns aren’t available or don’t reflect your current income, other documentation can be used:

• Business bank statements

• BAS lodgements

• Letter from your accountant 

These options can help, but they often come with higher interest rates or stricter conditions.

Why a Broker Makes the Difference

Testing the waters with a broker is one of the smartest moves you can make. Brokers can:

• Check your borrowing capacity and servicing ability

• Compare rates across lenders

• Do all of this without impacting your credit score

  
  

This means you can explore your options safely before committing to a formal application.

Final Thought

Being self-employed doesn’t mean being locked out of home ownership. With the right preparation and the right advocate, you can build a strong application that highlights your financial stability and unlocks the best possible loan terms.

If you’re self-employed and ready to explore your home loan options, let’s connect. I specialise in helping professionals like you turn business success into borrowing power.