Running your own business gives you plenty to think about. Whether you’re a carpenter working around Gawler, an electrician in Noarlunga, a builder in Aldinga or a contractor taking on projects towards Victor Harbor, applying for a home loan can bring a few extra questions.
Can you get a home loan with an ABN? Do you need two years of tax returns? What happens if your income changes from month to month?
The good news is that being self-employed does not automatically prevent you from getting a home loan. The key is understanding how lenders assess your income, what information they may ask for and which loan options suit your circumstances.
Can you get a home loan if you’re self-employed in Adelaide or the surrounding region?
Yes. Self-employed people, including sole traders, company directors and contractors, can apply for home loans. The difference is often how income is verified. While an employee may provide payslips, a self-employed applicant may need to show tax returns, business financials or other suitable records.
Lenders also look at your existing debts, regular expenses, deposit, credit history and ability to meet repayments. Having a registered ABN on its own is not enough to establish borrowing capacity.
What documents do lenders look for?
Requirements vary depending on your business structure, trading history and the lender. You may be asked for:
- Recent personal tax returns and notices of assessment
- Business tax returns and financial statements, where relevant
- Evidence of ABN registration and trading history
- Business Activity Statements (BAS), where relevant
- Personal and business bank statements
- Details of existing loans, credit cards and other financial commitments
Some lenders may request additional documents or use different methods to verify income. It helps to have your records organised early, but there is no single checklist that suits every applicant.
Do you need two years of tax returns to get a home loan?
Many lenders prefer to see two years of self-employed financial information. However, some may consider a shorter trading history, depending on the circumstances and supporting evidence.
For example, an electrician who recently started contracting after several years of working in the same trade may have a different application profile from someone who has launched an entirely new business. Previous industry experience can be relevant, but it does not guarantee lender acceptance.
Before applying, it is worth checking which lenders may consider your specific situation and what evidence they will need.
How do lenders work out your income if it changes each year?
Self-employed income is not always the same from one year to the next. Some lenders consider an average of recent financial years, while others may place more weight on the latest year or apply their own adjustments.
Certain non-cash expenses, such as depreciation, may be considered differently by different lenders. That does not mean every expense can simply be added back to your income. The treatment depends on lender policy and the supporting financial records.
It is also important to understand that business turnover is not the same as income available to repay a home loan. A lender will usually need a clearer picture of business performance and your personal financial position.
Can you get a home loan with only one year of ABN history?
It may be possible, but options can be more limited. A lender may consider how long the ABN has been active, the financial records available, whether you worked in the same industry previously and the overall strength of your application.
If you have recently become self-employed, speak with a mortgage broker before lodging multiple applications. That gives you a chance to understand possible lender requirements first.
What is a low-doc home loan?
Some lenders offer alternative-documentation or “low-doc” home loan options for eligible self-employed borrowers who cannot provide the usual set of financial statements or tax returns.
These products still require evidence of income and an assessment of your ability to repay. They may have different interest rates, fees, deposit or loan-to-value ratio requirements. A low-doc loan is not necessarily the most suitable or least expensive option, so it is important to compare the total cost and conditions.
Could your work ute, equipment loan or credit card affect your home loan?
Yes. Existing financial commitments can affect the amount a lender is prepared to offer. This might include a vehicle loan, equipment finance, business debt for which you are personally liable, credit cards or personal loans.
If you are planning to buy a home and take out finance for a new work vehicle or equipment around the same time, consider discussing the timing and repayment commitments before making a decision.
What can improve your chances of a smoother application?
- Keep tax returns, BAS and business financial records up to date.
- Separate personal and business transactions where practical.
- Review existing debts and credit limits before applying.
- Check your deposit and budget for purchase costs, not just the property price.
- Speak with your accountant about your business records and tax position.
- Get advice on lender requirements before submitting applications.
These steps may make the assessment process clearer, although approval always depends on your individual circumstances and the lender’s criteria.
How can a mortgage broker help self-employed buyers across Adelaide and the surrounding region?
A mortgage broker can review your goals, talk through your income and financial position, explain potential lending options and help you understand the application process. Different lenders assess self-employed income differently, so comparing more than one option can be particularly useful.
At My Finance Solutions, we help self-employed borrowers understand their home loan options, from first-home buyers to established business owners. We particularly welcome enquiries from tradies and business owners across the corridor from Gawler to Victor Harbor, including Adelaide’s southern suburbs. If you’re unsure how your business income will be assessed, we can discuss your circumstances and explain the next steps. We also assist clients in other locations.
A real client example: supporting a local business owner from expansion to a new home
A local restaurant owner approached My Finance Solutions for help with cash flow and plans to expand their business. The restaurant had been trading for just over a year. We assisted with a significant business loan facility to support those plans, and the client subsequently reported a 30% increase in revenue.
As their needs developed, we also helped one of the directors arrange asset finance for a delivery vehicle to introduce a delivery service. We later assisted with a personal loan for an overseas holiday.
More recently, the directors returned to discuss land and construction finance for their planned family home. Their journey shows why self-employed borrowers can benefit from looking at business commitments and personal borrowing goals together. Each lending application is assessed on its own circumstances, and past outcomes do not guarantee future approval.
Frequently asked questions
Can a tradie get a home loan with an ABN?
Yes, subject to the lender’s assessment. You will generally need to provide suitable evidence of income, your deposit and your financial commitments. An ABN alone does not establish eligibility.
Do I need a larger deposit because I’m self-employed?
Not necessarily. Deposit requirements depend on the lender, loan type, loan-to-value ratio and your overall application. Some alternative-documentation loans may have stricter conditions.
Can I get a mortgage if I have only been self-employed for 12 months?
Some lenders may consider applicants with a shorter trading history. The outcome depends on your previous experience, available records and the lender’s criteria.
Do lenders look at business turnover or profit?
Lenders generally look beyond turnover to assess sustainable income, expenses, liabilities and repayment capacity. Their methods vary.
Does applying with several banks affect my credit file?
Formal credit applications may result in enquiries recorded on your credit report. It can be helpful to understand lender criteria before applying.
Does My Finance Solutions help tradies from Gawler to Victor Harbor?
Yes. We assist self-employed clients across the Gawler-to-Victor Harbor corridor, including Adelaide’s southern suburbs, and welcome enquiries from borrowers in other areas as well.
Let’s discuss your home loan options
Self-employed and thinking about buying a home? Whether you’re in Gawler, Noarlunga, Aldinga, Victor Harbor or elsewhere, you do not need to have every answer before making an enquiry. Whether you have been trading for years or have only recently started working for yourself, we can help you understand what information may be needed and what your next steps could look like.
Contact Tom Langford at My Finance Solutions to discuss your situation and next steps.
Phone: 0407 613 147 | Email: tom@myfinancesolutions.com.au
General information only. This article does not consider your personal objectives, financial situation or needs. Home loan eligibility, credit assessment, rates, fees and conditions vary by lender. No approval or particular outcome is guaranteed.