Self-Employed and Want a Loan? Here’s the Short Answer🐾
Being self-employed does not automatically mean you can’t get a loan. The short answer is yes, you often can.
Where it can get tricky is that lenders often make the process a bit more complicated than it is for someone on wages. That doesn’t always mean it’s a no — it just means they usually want to see a bit more information to understand your income properly.
If you’re a sole trader, company director, contractor, freelancer or business owner, there are still plenty of loan options out there. The key is understanding how lenders look at self-employed income, and which lenders are better suited to your situation.
Why it can feel harder when you’re self-employed
For someone in a PAYG job, lenders can usually look at payslips and employment history and move on fairly quickly.
For self-employed borrowers, income can be a bit less straightforward.
Maybe the business has had a stronger year recently. Maybe you’ve claimed deductions that make your taxable income look lower. Maybe your income varies from year to year. Maybe you haven’t been trading for a full two years yet.
That’s where lenders can start asking more questions.
It’s not necessarily because your situation is bad — it’s just because self-employed income often needs a bit more explaining.
What lenders usually want to see
Depending on the lender, they may ask for things like:
tax returns
notices of assessment
business financials
BAS
business bank statements
Some lenders want a full two years of trading history, while others may consider less in the right situation.
This is why lender choice matters so much. One lender might make the process harder than it needs to be, while another may be far more comfortable with your setup.
What if you don’t have two years of trading?
This is where alt doc can sometimes come into the conversation.
I didn’t go deep on this in the video, but at a surface level, alt doc can be an option for some self-employed borrowers who may not have the usual two years of financials available.
Instead of full traditional income verification, some lenders may consider other forms of supporting evidence, depending on the scenario.
It’s not for everyone, and it can work a bit differently to standard home lending, but it can be worth exploring if your situation doesn’t fit the usual mould.
The good news
Being self-employed doesn’t mean you’re out of options.
It just means the right lender, the right documents, and the right structure matter even more.
A lot of the time, the biggest issue isn’t whether a loan is possible — it’s whether the right lender is being used from the start.
Final thoughts
If you’re self-employed and wondering whether you can get a loan, the answer is often yes.
But lenders can make it a more complicated process than it needs to be, especially if your income is a little more complex or you don’t fit the standard box.
That’s where having a broker in your corner can make life a lot easier.
If you want to know what may be possible in your situation, get in touch. I can help you work through it, explain things in plain English, and let you know what options may be available.
— Iain & Dave
Mortgage Muster