Preparing financially
Preparing financially as a self-employed buyer
Lenders typically want more evidence of a stable income when you work for yourself — what's commonly required, and how income is usually assessed.
- Most lenders want at least two years of financial history — tax returns, notices of assessment and business financial statements.
- Income is commonly averaged across two years, not just your most recent year.
- Low-doc products exist for newer businesses, generally with trade-offs.
- How self-employed income is assessed varies significantly between lenders.
What lenders typically ask for
Most lenders want to see at least two years of financial history for a self-employed applicant — commonly tax returns, notices of assessment, and business financial statements — rather than the payslips an employee would provide (ASIC (Moneysmart), verified 29 Jul 2026). A newer business can make approval harder, not impossible; some lenders offer "low-doc" products with different evidence requirements, generally at a higher rate or with other trade-offs.
Income smoothing and lender variability
Lenders commonly average your income across two financial years rather than using your most recent (possibly higher) year alone — useful to know before assuming your latest year's income is what will be assessed. Exactly how each lender treats self-employed income varies significantly; this is a real case where shopping around or using a broker familiar with self-employed applications can matter more than usual.
Practical checklist
Before applying as a self-employed buyer
- Gather at least two years of tax returns and notices of assessment
- Ask your accountant how your reported taxable income will look to a lender
- Compare how different lenders treat self-employed income — consider a broker
- Keep business financial statements current and reconciled
Questions for a professional
- How many years of financial history do you require, and in what format?
- How would you assess my income if it varies significantly year to year?
- Do you offer a low-doc option, and what's the trade-off compared with full documentation?
Official resources
Sources and methodology
- Self-employment — ASIC (Moneysmart) (retrieved 29 Jul 2026)
Figures on this page are drawn from Delora's local knowledge graph, refreshed from these primary sources and checked for changes on a regular schedule. If a figure here looks out of date, the official source above is always the authority — please let us know.