Understanding the Process

Getting a home loan when you’re self-employed is different from being PAYG, and understanding the process early can help reduce uncertainty, delays, and stress later on. This page explains how the self-employed home loan process generally works, what lenders typically look at, and why preparation matters — before any formal credit discussions take place. 

Why Self-Employed Borrowers Are Assessed Differently

Lenders assess self-employed borrowers differently because income can vary and is often structured through a business rather than paid as a salary.

Instead of focusing on recent payslips, lenders usually look at:

• Business financials
• Income consistency over time
• Business structure (sole trader, company, trust, partnership)
• Ongoing viability of the business

Because policies differ between lenders, preparation and understanding are key.

The Typical Home Loan Process (High-Level)

Understanding Your Position

While every situation is different, the self-employed home loan process generally involves the following stages:

Before speaking with a lender or broker, it helps to understand:

• How your income may be viewed
• What documentation is usually required
• Any potential gaps or issues to address early

This stage is about clarity, not applications.

Preparing Information

Self-employed borrowers are usually asked to provide a broader range of documents than PAYG applicants.

These may include:

• Business financial statements
• Tax returns and notices of assessment
• Business activity statements (BAS)
• Accountant-prepared reports

Having information organised early can help future conversations run more smoothly.

Formal Credit Advice & Application

Once you’re ready, an appropriately licensed and accredited mortgage broker or lender can:

• Review your circumstances in detail
• Provide credit advice
• Discuss suitable loan options
• Assist with any formal application process

This stage involves personalised advice and assessment.

Why Preparation Matters

Many issues self-employed borrowers face arise before an application is submitted.

Understanding the process early can help:

• Reduce unnecessary delays
• Avoid applying before you’re ready
• Improve conversations with licensed professionals
• Set realistic expectations

Preparation doesn’t guarantee an outcome — but it does reduce uncertainty.

Common Misunderstandings for Self-Employed Borrowers

Some common assumptions include:

• “If my business is profitable, approval is automatic”
• “All lenders assess self-employed income the same way”
• “More income always equals better outcomes”

In reality, assessment methods, documentation requirements, and policies vary significantly.

Getting the Right Support at the Right Time

Education and preparation come first.

When you’re ready for personalised advice, speaking with an appropriately licensed mortgage broker or lender ensures:

• Your circumstances are assessed properly
• Regulatory obligations are met
• Advice is tailored to your situation

Start With Education

If you’re self-employed and unsure where to start, education is often the most helpful first step.

Next Steps:

Prefer to keep learning first?
Explore our self-employed home loan education