Running your own business shouldn't lock you out of a good home loan. It just changes which lenders to approach — and how to present your income.
Melbourne’s east is full of business owners — tradies, consultants, café owners, family companies. If you’re one of them, you’ve probably heard that getting a home loan is harder when you work for yourself. It isn’t harder; it’s just different. The approval hinges on how your income is documented and which lender assesses it.
What lenders want to see
Most banks ask for two years of tax returns and financials, and many will average the two years — which punishes a growing business. Some lenders use only the most recent year, and others accept accountant-prepared figures. Same business, very different borrowing outcomes depending on the door you knock on.
Add-backs: the income you forgot you had
Depreciation, one-off expenses, interest on debts being refinanced and extra superannuation contributions can often be added back to your taxable income for lending purposes. A good broker works through your financials line by line — it’s common to find meaningful extra borrowing power your tax return hides by design.
Low-doc isn’t a dirty word
If your returns aren’t up to date, low-doc options using BAS statements, business bank statements or an accountant’s declaration can bridge the gap — at slightly higher rates, often refinanced to a standard loan once your financials catch up. It’s a legitimate strategy when buying can’t wait for tax season.
Timing your application
The months around lodging your return are gold: a strong fresh year on file can transform your assessment. If you’re planning to buy in the next year, a quick conversation now — before you make big equipment purchases or restructure — can protect your borrowing power.
Tudor Finance has arranged loans for self-employed clients across the eastern suburbs since 2007, and we arrange equipment finance too. Call (03) 9894 7135 for a free chat.
This article is general information only and doesn’t consider your personal circumstances or provide tax advice. Tudor Finance Pty Ltd, Australian Credit Licence 393142.
