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Becoming self-employed is a bold step that offers autonomy and flexibility—but it can also present hurdles when applying for a home loan. Unlike salaried applicants, newly self-employed individuals often find it harder to prove income consistency and financial stability, two key criteria lenders assess.
Understanding lender expectations, having the correct documentation prepared and readily available, and knowing your mortgage options are critical steps toward achieving homeownership. With the right approach, self-employed home financing can become a powerful stepping stone in your personal and financial journey.
Self-employed home financing refers to loan products specifically designed for small business owners, freelancers, and sole traders. These mortgages acknowledge that while income may not follow a predictable pattern, it can still reflect solid financial standing.
Newly self-employed borrowers typically encounter:
To overcome these challenges, it’s important to provide alternative evidence of income and strong financial management.
Self-employed individuals may be eligible for a variety of home loans, including:
While traditional banks often maintain strict lending criteria, non-bank and specialist lenders are typically more flexible. These lenders may assess income using broader documentation types and are more likely to accommodate borrowers with unconventional financial profiles.
At Yard, we offer a range of home loan products tailored to the needs of self-employed Australians.
Lenders typically require a range of financial documents to assess eligibility for a self-employed home loan. These often include:
However, for newly self-employed borrowers, some of this documentation—such as full-year lodged tax returns—may not yet be available. In these cases, lenders may accept alternative methods to verify income, such as:
These alternative income verification methods are designed to provide flexibility while still demonstrating financial stability and borrowing capacity.
If you’ve been self-employed for under two years, don’t assume homeownership is out of reach. Some lenders will consider:
To increase your chances of approval:
For more, see our article on how to qualify for a home loan if you are self-employed.
While obtaining a self-employed house mortgage as a newly self-employed individual can be challenging, it is achievable with thorough preparation and the support of a knowledgeable lender. By organising your financials, understanding your options, and exploring specialist lending channels, you can secure a home loan that suits your situation.
At Yard, we’re committed to helping small business owners and entrepreneurs achieve homeownership with tailored mortgage solutions.
Self-employed individuals, including business owners, sole traders, contractors or freelancers, can still qualify for a home loan. Low-doc home loans are specifically designed for people who do not meet the traditional income verification requirements. Yard takes your unique situation into account, with a more personalised and flexible approach to the loan approval process.This includes verifying your income via alternative means, including assessing business activity statements (BAS), an accountant declaration and bank statements.
Typically, we expect that you have 2 years of ABN registration. That being said, Yard has solutions for self-employed customers with 6 months ABN registration. Simply start your application online and one of our Loan Consultants will call you back to discuss your options.
Low Doc or Alternate Doc Loans (Alt Doc) is a way to describe home loans for people with income and assets, but without the regular ways to prove this. At Yard, we understand that not everyone who is looking for a home loan will have traditional proof of their ability to afford to repay the loan and may have different financial structures. As a non-bank lender, our Loan Consultants are able to take your unique circumstances into account when discussing your home loan. So if you're looking for a mortgage but aren't sure whether you can prove that you can repay, get in touch with our friendly team today and we'll talk you through the process and what we need to be able to finance your property.
Yes, having an ABN is a standard requirement for sole traders applying for a home loan. An ABN helps demonstrate that you are actively running a business and enables lenders to assess your income and financial standing.
It's important to understand that applying for a home loan as a sole trader is different from applying as a PAYG employee. PAYG applicants typically provide payslips and employment letters as proof of income, while sole traders are assessed based on business financials, tax returns, or alternative documentation.
At Yard, we offer solutions that accommodate these differences, including full doc home loans for those with two years of tax returns and low doc options for borrowers who may not have traditional financial documents. Our loan consultants are available to help review your situation and find the most appropriate option for your circumstances.
Most lenders require you to demonstrate at least two years of self-employment for a low-doc loan. As a non-bank lender, Yard can take a more flexible approach to income verification. For example, your application will be considered if you've been trading under an ABN for at least six months and can demonstrate consistent income growth.
Low doc loans typically require alternative documentation such as BAS statements, recent business or personal bank statements, or an accountant’s letter confirming your income. These documents help demonstrate your ability to repay the loan when full financials like tax returns aren’t available.
New loan inquiries: hello@yard.com.au
Service requests: help@yard.com.au
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