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How to Prove Your Income When You Run Your Own Business

Fri, 24 Oct 2025 02:03:16 GMT

If you’re self-employed, proving your income to a lender can feel confusing — especially when you’re used to managing your own books instead of handing over payslips.

The good news? It’s not about having “perfect” finances. It’s about showing a clear, consistent picture of how your business earns money.

Here’s what lenders usually look for — and how to prepare.

1. Keep Your ABN Active and Consistent

Most lenders prefer to see an active ABN with a consistent trading history. Two years is ideal, but shorter timeframes may still be considered depending on the situation.

Make sure:

Your ABN is active
The business name matches your tax returns and financial documents
There are no unexplained changes between entities

You can check your ABN status directly on the Australian Business Register .

Consistency matters more than size.

2. Understand How Your Tax Returns Are Viewed

Tax returns are one of the main documents lenders use to assess self-employed income.

While tax minimisation is completely normal, it can sometimes make your income look lower on paper. If you’re planning to apply for a home loan in the near future, it can help to understand how your reported income may be interpreted.

Many self-employed borrowers speak with their accountant ahead of time so there are no surprises later.

3. Prepare Supporting Documents

In addition to tax returns, lenders often rely on supporting documents to confirm income stability and business performance, such as:

BAS statements showing regular turnover
Business bank statements
Profit and loss statements
Accountant confirmation letters

These documents help build a clearer picture of how your business operates over time.

4. Keep Business and Personal Finances Separate

Separate business and personal accounts make life easier — for you and for lenders.

Clear records:

Reduce confusion
Make income easier to verify
Avoid unnecessary follow-up questions

Clean financials often speed up the process.

5. Get the Right Guidance Early

Understanding what lenders look for before you apply can save time and stress.

At Logan Home Loans , we help self-employed Australians understand the home loan process and what information is typically required. When appropriate, we can introduce you to a licensed mortgage broker who can assess your situation and provide credit advice.

Remember: proving your income isn’t about ticking every box perfectly — it’s about clearly showing how your business earns and sustains income.

If you’re self-employed and unsure where to start, getting clarity early can make the entire process feel far more manageable.

Low Doc Home Loans Explained: What Self-Employed Borrowers Need to Know

Fri, 24 Oct 2025 01:57:56 GMT

If you’re self-employed, you’ve probably heard the term “Low Doc Loan” thrown around. But what exactly does it mean — and is it right for you?

At Logan Home Loans, we work with many clients who don’t fit the traditional lending box, so here’s a clear breakdown.

What Is a Low Doc Loan?

A Low Doc (short for “low documentation”) loan is designed for self-employed borrowers who may not have the usual paperwork that traditional lenders require. Instead of two years of full financials, you can use:

BAS statements
Business bank statements
Accountant’s income declaration

These help show your true earning capacity, even if your tax returns paint a more conservative picture.

Who Can Benefit?

Low Doc Loans are ideal if you:

Have recently started your business
Use legal tax strategies that reduce your taxable income
Are waiting for updated financials
Have strong business cash flow but limited “official” proof of income

What’s the Catch?

Because Low Doc Loans carry more risk for lenders, they can come with slightly higher interest rates or require a larger deposit. But with the right preparation — and the right broker — you can still access very competitive options.

Why Work With a Specialist?

Many mainstream banks don’t offer Low Doc options, but specialist lenders do. At Logan Home Loans, we help compare policies, rates, and lender requirements so you know exactly where you stand.

The takeaway: a Low Doc Loan can be the bridge between your self-employed income and your home ownership goals — and it’s often simpler than you think when guided by the right broker.

The Ultimate Guide to Getting a Home Loan When You’re Self-Employed in Australia

Fri, 24 Oct 2025 01:36:44 GMT

Being self-employed comes with plenty of rewards — flexibility, independence, and control over your income. But when it’s time to apply for a home loan, many business owners quickly discover that lenders don’t always make it easy.

At Logan Home Loans, we specialise in helping self-employed Aussies navigate this process with confidence. Here’s what you need to know to give yourself the best chance of approval.

1. Understand What Lenders Look For

Traditional lenders often rely on regular payslips to prove income, but if you’re self-employed, they’ll instead review your:

ABN history (usually 2 years or more)
Tax returns or BAS statements
Business financials , such as profit and loss statements
Personal credit history

They’re not just looking at how much you earn — they’re looking for stability and consistency .

2. Clean Up Your Financials

Before you apply, take time to make sure your records are up to date. Work with your accountant to ensure:

All tax returns have been lodged
Business and personal accounts are separate
Any unnecessary expenses are minimised (as they can reduce your taxable income)

A clean set of books gives lenders confidence that your income is sustainable.

3. Explore Low Doc Options

If you don’t have two full years of tax returns, a Low Doc Loan could be a smart option. These allow you to verify income using alternative documents like BAS statements, bank statements, or an accountant’s letter.

4. Get a Specialist on Your Side

A broker who understands the self-employed space (like us!) can match you with lenders that actually appreciate how business income works. We know which banks look beyond the tax return and can often negotiate better outcomes.

Bottom line: being self-employed shouldn’t stop you from owning your dream home — you just need the right strategy and support to make it happen.