Self-employed
Self-employed home loans, substantiated.
Self-employed lending is one of the firm's areas of particular depth. Each Australian lender treats self-employed income differently. Some require two years of full personal and business financials. Some accept Business Activity Statements with an accountant's declaration. Some accept declared-income lite-doc structures. Matching the right lender to the right documentation, with add-backs read correctly, is the work that gets complex self-employed files approved at competitive pricing.
What we cover
The lending Maxfin structures in this category.
- 01
Full-doc lending for self-employed
Standard residential and investment lending using two years of personal and business tax returns, ATO Notices of Assessment and ATO portal screens. Pricing typically equivalent to PAYG borrowers when the financials reflect cash flow accurately. Best where the business has a stable, well-documented two-year track record.
- 02
Alt-doc lending (BAS substantiation)
Lending using six or twelve months of Business Activity Statements supported by an accountant's declaration or business bank statements. Used where full financials don't fully reflect cash flow, where the most recent year hasn't been lodged yet, or where the business position has shifted materially since the last tax return. Rate premium typically 0.20% to 1.00% above full-doc, subject to lender criteria.
- 03
Lite-doc / one-doc lending
Declared-income lending supported by a single substantiating document, typically used for shorter trading histories or where the borrower's tax position significantly understates cash flow. Higher rate premium (often 0.5% to 1.5% above standard) with tighter LVR caps in most cases. Useful for borrowers who can't access full or alt-doc but have strong substantiable income.
- 04
Add-back interpretation
Many self-employed applications fail because the broker presenting the file doesn't surface legitimate add-backs the lender will accept. Depreciation, interest on existing business loans, one-off expenses, director's superannuation contributions and certain non-recurring write-downs are commonly added back to net profit. Add-back policy varies materially between lenders. Two banks looking at the same financials can arrive at different assessable income figures, sometimes by hundreds of thousands of dollars.
- 05
Newly self-employed (under 24 months)
Lenders with policies for borrowers under two years self-employed, typically requiring evidence of continuity. Common pathways: prior PAYG income in the same industry, twelve months of trading supported by year-to-date figures from the accountant, or specialist lender acceptance of six months of ABN history with appropriate substantiation. The right lender depends on the trading history, the documentation available, and the industry.
- 06
Trust and company structures
Lending where the borrower trades through a discretionary trust, family trust, unit trust, or operating company. Includes PAYG-from-company arrangements, beneficiary distributions, and integrated structures where personal and entity income both feature. Personal guarantees from beneficiaries or directors are typically required.
- 07
Self-employed investment lending
Investment property finance for self-employed borrowers, where the file combines complex income assessment with investment-property servicing rules. Maxfin maps the lender that reads both the self-employed income and the investment portfolio favourably, rather than splitting the application across lenders that treat one or the other as edge cases.
- 08
ATO debt and payment plan negotiation
Lenders treat ATO debt and payment plans cautiously. Where ATO arrears exist, Maxfin works with the borrower's accountant to either clear the position before submission or to identify the small subset of lenders who consider files with disclosed and serviced payment plans. Hidden ATO debt discovered during credit checks typically results in a decline.
01Full-doc lending for self-employed
Standard residential and investment lending using two years of personal and business tax returns, ATO Notices of Assessment and ATO portal screens. Pricing typically equivalent to PAYG borrowers when the financials reflect cash flow accurately. Best where the business has a stable, well-documented two-year track record.
02Alt-doc lending (BAS substantiation)
Lending using six or twelve months of Business Activity Statements supported by an accountant's declaration or business bank statements. Used where full financials don't fully reflect cash flow, where the most recent year hasn't been lodged yet, or where the business position has shifted materially since the last tax return. Rate premium typically 0.20% to 1.00% above full-doc, subject to lender criteria.
03Lite-doc / one-doc lending
Declared-income lending supported by a single substantiating document, typically used for shorter trading histories or where the borrower's tax position significantly understates cash flow. Higher rate premium (often 0.5% to 1.5% above standard) with tighter LVR caps in most cases. Useful for borrowers who can't access full or alt-doc but have strong substantiable income.
04Add-back interpretation
Many self-employed applications fail because the broker presenting the file doesn't surface legitimate add-backs the lender will accept. Depreciation, interest on existing business loans, one-off expenses, director's superannuation contributions and certain non-recurring write-downs are commonly added back to net profit. Add-back policy varies materially between lenders. Two banks looking at the same financials can arrive at different assessable income figures, sometimes by hundreds of thousands of dollars.
05Newly self-employed (under 24 months)
Lenders with policies for borrowers under two years self-employed, typically requiring evidence of continuity. Common pathways: prior PAYG income in the same industry, twelve months of trading supported by year-to-date figures from the accountant, or specialist lender acceptance of six months of ABN history with appropriate substantiation. The right lender depends on the trading history, the documentation available, and the industry.
06Trust and company structures
Lending where the borrower trades through a discretionary trust, family trust, unit trust, or operating company. Includes PAYG-from-company arrangements, beneficiary distributions, and integrated structures where personal and entity income both feature. Personal guarantees from beneficiaries or directors are typically required.
07Self-employed investment lending
Investment property finance for self-employed borrowers, where the file combines complex income assessment with investment-property servicing rules. Maxfin maps the lender that reads both the self-employed income and the investment portfolio favourably, rather than splitting the application across lenders that treat one or the other as edge cases.
08ATO debt and payment plan negotiation
Lenders treat ATO debt and payment plans cautiously. Where ATO arrears exist, Maxfin works with the borrower's accountant to either clear the position before submission or to identify the small subset of lenders who consider files with disclosed and serviced payment plans. Hidden ATO debt discovered during credit checks typically results in a decline.
Approach
How Maxfin structures it.
Self-employed for two years, full-doc
Standard full-doc lending where the borrower has two complete financial years of trading and lodged tax returns. Maxfin reads the financials before submitting, identifies which lender's add-back policy benefits this file most, and presents the add-backs in the format the chosen lender expects. The right lender choice can shift assessable income meaningfully without changing the underlying business position. Rates and terms are typically equivalent to PAYG borrowers, subject to lender criteria.
Newly self-employed, prior PAYG in the same industry
A borrower who left a PAYG role in the same industry to start their own practice or business twelve to eighteen months ago. The application uses alt-doc structures, supported by year-to-date figures from the accountant, business bank statements showing trading patterns, and prior payslips evidencing the industry continuity. Lenders that accept the continuity argument generally price these competitively within alt-doc bands.
Strong cash flow, minimal taxable income
A long-established self-employed borrower whose tax-return income is materially below true business cash flow due to legitimate tax-planning structures. Lite-doc lending using declared income, supported by an accountant's letter and business bank statements at the lender-required LVR cap. The trade-off is rate premium and tighter LVR; the benefit is access to lending that full-doc treatment would not produce.
Multi-entity structure: company plus discretionary trust
A borrower with a trading company and a discretionary trust holding investment assets, drawing income from both via wages, distributions and director loans. Maxfin coordinates with the borrower's accountant to consolidate the income picture in a format the lender's calculator can read, and matches the file to lenders who handle multi-entity self-employed structures rather than treating them as alt-doc by default.
Self-employed for two years, full-doc
Standard full-doc lending where the borrower has two complete financial years of trading and lodged tax returns. Maxfin reads the financials before submitting, identifies which lender's add-back policy benefits this file most, and presents the add-backs in the format the chosen lender expects. The right lender choice can shift assessable income meaningfully without changing the underlying business position. Rates and terms are typically equivalent to PAYG borrowers, subject to lender criteria.
Newly self-employed, prior PAYG in the same industry
A borrower who left a PAYG role in the same industry to start their own practice or business twelve to eighteen months ago. The application uses alt-doc structures, supported by year-to-date figures from the accountant, business bank statements showing trading patterns, and prior payslips evidencing the industry continuity. Lenders that accept the continuity argument generally price these competitively within alt-doc bands.
Strong cash flow, minimal taxable income
A long-established self-employed borrower whose tax-return income is materially below true business cash flow due to legitimate tax-planning structures. Lite-doc lending using declared income, supported by an accountant's letter and business bank statements at the lender-required LVR cap. The trade-off is rate premium and tighter LVR; the benefit is access to lending that full-doc treatment would not produce.
Multi-entity structure: company plus discretionary trust
A borrower with a trading company and a discretionary trust holding investment assets, drawing income from both via wages, distributions and director loans. Maxfin coordinates with the borrower's accountant to consolidate the income picture in a format the lender's calculator can read, and matches the file to lenders who handle multi-entity self-employed structures rather than treating them as alt-doc by default.
Common questions
Frequently asked.
Can I borrow with only one year of self-employment?
Possibly, yes. A number of lenders may accept twelve months trading where the borrower was previously PAYG in the same industry, supported by year-to-date figures from an accountant and business bank statements. A handful of specialist lenders may consider as little as six months of ABN history with appropriate substantiation, on alt-doc or lite-doc terms. The trade-off is consistent: shorter trading history tends to narrow the lender panel and add a rate premium. Subject to lender criteria.
Are self-employed rates higher than PAYG rates?
Full-doc self-employed lending is typically priced at standard rates, equivalent to PAYG borrowers, when the financials reflect cash flow accurately. Alt-doc rates carry a margin of typically 0.20% to 1.00% above the equivalent full-doc rate. Lite-doc rates sit wider again, often 0.5% to 1.5% above standard rates. The trade-off is access. Files declined elsewhere can still settle here, with the rate premium reflecting the additional documentation flexibility, subject to lender criteria.
What documentation will I need?
Depends on the lender and the documentation tier. Full-doc typically requires two years of personal and business tax returns, two years of business financial statements, the most recent ATO Notices of Assessment, and current ATO portal screens. Alt-doc commonly requires six or twelve months of BAS plus an accountant's declaration. Lite-doc may require only a single substantiating document. Maxfin sends a precise checklist tailored to the chosen lender and pathway before the borrower starts gathering anything.
What add-backs do lenders typically accept?
Commonly accepted add-backs include depreciation, interest on existing business loans (where the loans are being refinanced or the lender is taking the security), director's superannuation contributions, one-off non-recurring expenses, and certain write-downs. Add-back policy varies materially between lenders. The same financials can produce different assessable income figures across lenders, which is why lender selection at the outset matters more than rate-shopping at the end.
Can I borrow if I have ATO debt or a payment plan?
ATO debt complicates self-employed lending materially. Hidden ATO debt discovered during credit checks typically results in a decline regardless of the file's other merits. Disclosed ATO debt with a serviced payment plan may be acceptable to a small subset of lenders, with the payment plan obligation factored into servicing. The cleanest path is to clear the ATO position before submission where possible. Subject to lender criteria.
How is my income calculated if my recent year was much stronger or weaker than the prior year?
Lenders weight the two years differently. Some take the most recent year, some take the average of both, and some default to the lower of the two as a conservative measure. A handful of lenders cap the year-on-year growth they will recognise, which dampens a strong recent year. The reverse can also apply to a soft most-recent year. The right lender depends on the trajectory of the income and which assessment method benefits this specific file most.
Can I borrow through my company or trust?
Yes. Maxfin works regularly with company-borrower applications, discretionary trust structures, unit trust structures, and integrated multi-entity arrangements. Personal guarantees from directors or beneficiaries are typically required. Around half of the residential lender panel decline trust-based applications outright, but the lenders who accept them generally price competitively. Lender selection is the primary determinant of trust-lending outcomes.
What if my most recent tax return isn't lodged yet?
Common scenario. The cleanest pathway is alt-doc lending using BAS for the unlodged period, supported by an accountant's declaration of expected income for the year. This avoids the wait for lodgement, which can be several months once the return is in the accountant's queue. Some lenders still require the prior year fully lodged; others accept an accountant's letter confirming progress on the current year. Subject to lender criteria.
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