Sole traders, contractors and business owners often get a hard look from major banks. We work with lenders who genuinely understand variable income.
Two lenders looking at the same business income can reach very different decisions — one might assess two years of tax returns, another a single year, others may use BAS or accountant’s declarations. Knowing which to approach is half the work.
Many lenders look for two years of consistent self-employment, but that’s far from a hard rule. Some accept a single full year of financials, especially if you were in the same industry as a PAYG employee beforehand. Alt-doc lenders can take a more flexible view again.
Alt-doc (alternative documentation) loans use evidence beyond a full set of tax returns — for example BAS statements, bank statements or an accountant’s declaration. Rates are typically a little higher than standard full-doc loans, but for the right borrower they can mean the difference between approval and decline.
Most use net profit from your tax returns, often adjusted with ‘add-backs’ for items like depreciation, one-off expenses, voluntary super and director salaries paid through the business. The way each lender treats add-backs differs significantly — we know which lenders take a generous, sensible view of your kind of business.
Yes. Contractor income is treated very differently across lenders — some treat it almost like PAYG income, others insist on full self-employed assessment. Choosing the right lender can mean a meaningful difference in borrowing capacity.
