Self-Employed Home Loans — Approvals Built Around Your Business
For entrepreneurs, income proof doesn’t fit traditional boxes. As an independent lender, we assess full, alt, and low-doc scenarios directly — even recent ABNs or trust structures.
We will do our very best to find a solution that meets your expectations.
Benefits: Full/alt/low doc pathways, trust/company borrowers accepted, short trading history considered, combined business + property options.
Self-Employed Home, Business and Commercial Loans
Running a business rarely produces income in the same way as ordinary PAYG employment.
Revenue may be seasonal. Profits may be reinvested. Income may be received through a company, partnership or trust. Directors may receive a combination of salary, superannuation, dividends and retained earnings. Recent university graduates may establish professional practices before they have accumulated two full years of financial statements.
Mortgage House understands these realities.
We assess the underlying strength of your business, your income evidence, your financial position, the proposed security and your ability to meet the loan commitments—not simply whether your application fits a traditional employment template. Depending on the purpose of the finance, the applicable credit law and our lending policy, we may consider:
- Sole traders
- PAYG employees
- Self-employed professionals
- Contractors and consultants
- Partnerships
- Proprietary limited companies
- Company directors employed by their own company
- Discretionary, family, unit and hybrid trusts
- Corporate trustees
- Self-managed superannuation funds
- Co-borrowers and guarantors
- Borrowers with recent ABNs or shorter trading histories
- Applicants using Full Doc, Alt Doc or Low Doc evidence
- Eligible business and commercial borrowers requiring a specialised evidence pathway
Every application is individually assessed. Acceptance is not automatic and remains subject to the purpose of the loan, borrower capacity, verification requirements, credit history, security, valuation, loan-to-value ratio, product rules and Mortgage House’s Underwriting Credit Policy.
How Mortgage House Can Assist
Short-Term Finance
Short-term funding may help a business respond to an immediate, defined requirement, including:
- Bridging a timing difference between a property purchase and sale
- Temporary working-capital pressure
- Refinancing urgent or expensive business liabilities
- Funding an approved tax obligation or ATO liability restructure
- Completing a property transaction
- Purchasing time-sensitive stock, plant or equipment
- Funding an approved renovation or construction stage
- Consolidating eligible debts into a more manageable structure
- Establishing a stabilisation pathway before transitioning to longer-term finance.
Short-term borrowing should have a credible and documented exit strategy. This may include the sale of an asset, completion of construction, receipt of contracted revenue, refinance to a longer-term facility or demonstrated improvement in financial performance.
Medium-Term Finance
Medium-term finance may support:
- Business expansion
- Fit-outs and premises improvements
- Equipment acquisition
- Debt restructuring
- Professional-practice establishment
- Property development or major works within policy
- Acquisition of business premises
- Cash-flow smoothing
- Refinancing after a period of stronger conduct
- Transition from Alt Doc or Low Doc lending to a Full Doc facility
The objective should be to match the term and repayment profile to the useful life of the asset or the period over which the funding is expected to produce value.
Long-Term Finance
Longer-term finance may be suitable for:
- Purchasing an owner-occupied home
- Purchasing residential investment property
- Acquiring commercial premises
- Building a diversified property portfolio
- Refinancing an established home, investment, business or commercial loan
- Acquiring eligible property through an SMSF
- Funding construction or substantial improvements
- Securing business premises rather than continuing to rent
- Creating a long-term financing structure aligned with business and family objectives
Where appropriate, the loan may be structured using principal-and-interest repayments, interest-only periods, loan splits, offset facilities or other features permitted by the selected product.
Recent University Graduates and Emerging Professionals
A recent graduate may have strong future earning potential but limited historical financial evidence. Mortgage House may consider the broader strength of an application involving a graduate establishing a professional practice, particularly where the applicant can demonstrate:
- A completed and relevant professional qualification
- Professional registration or accreditation
- Signed employment, consulting or client contracts
- Credible forecast revenue
- Industry experience or supervised practice
- A meaningful savings buffer
- Appropriate equity
- A sound credit history
- Manageable commitments
- A sustainable business plan
Relevant professions may include medicine, dentistry, engineering, accounting, law, information technology, allied health and other established professional services. A qualification or contract does not guarantee approval. Forecast income will be assessed carefully and may need to be supported by contracts, bank statements, BAS, invoices, accountant information or other acceptable evidence.
Acceptable Property Security
Subject to product eligibility, valuation, location, condition, marketability and credit policy, Mortgage House may consider a broad range of residential and commercial property.
Residential Security
Residential property may include:
- Detached houses
- Townhouses
- Villas
- Duplexes
- Residential units and apartments
- Owner-occupied property
- Residential investment property
- House-and-land transactions
- Vacant residential land
- Construction projects
- Rural-residential property within acceptable parameters
- Multiple dwellings on one title
- Completed residential developments
- Mixed-use property with a predominant residential component
- Other specialised residential property considered on its individual merits
Commercial Security
Commercial property may include:
- Offices
- Retail premises
- Industrial units
- Warehouses
- Factories
- Medical and consulting suites
- Professional offices
- Commercial strata property
- Mixed-use buildings
- Business premises occupied by the borrower
- Investment commercial property
- Specialised commercial assets within policy
- Other income-producing or owner-occupied commercial property
Certain properties may attract lower maximum LVRs, additional valuation requirements, pricing adjustments or further credit controls because of their location, use, condition, concentration risk or limited resale market. Properties that are highly specialised, contaminated, incomplete, remote, subject to unusual title arrangements or dependent on a single specialised use may require additional assessment or may not be acceptable.
Borrower and Ownership Structures
Individuals
An individual may borrow:
- Alone
- Jointly with another individual
- As a sole trader
- As a property investor
- As a guarantor
- As a co-borrower or
- In another legally permissible capacity.
For regulated consumer credit, Mortgage House must make reasonable inquiries about the applicant’s requirements, objectives and financial position, take reasonable steps to verify relevant financial information and assess whether the proposed loan is not unsuitable.
Partnerships
A partnership may be considered where the application establishes:
- The identity of every partner
- The partnership’s legal and financial obligations
- How profit and loss are allocated
- The authority to borrow
- The proposed security ownership
- The liability of each partner
- Appropriate guarantees
- Current partnership financial statements and tax returns, where required and
- Satisfactory servicing capacity.
Partners are generally not employees of the partnership. Their income is ordinarily assessed through their share of partnership profit, distributions and supporting financial evidence.
Proprietary Limited Companies
A proprietary limited company may be considered as a borrower, trustee, trading entity, property owner or supporting entity.
Assessment may include:
- Company financial statements
- Company tax returns
- BAS
- Business bank statements
- ASIC company information
- Director and shareholder details
- Existing liabilities
- Related-party transactions
- Retained earnings
- Director salaries
- Dividends
- Loan accounts
- Cash-flow stability
- Guarantees
- The commercial purpose of the borrowing.
A company is a separate legal entity. However, directors or shareholders may still be required to provide guarantees, indemnities, security or supporting financial information.
Trusts
Mortgage House may consider a range of trust structures, including:
- Discretionary trusts
- Family trusts
- Unit trusts
- Hybrid trusts
- Testamentary trusts where legally and commercially appropriate
- Trusts with an individual trustee
- Trusts with a corporate trustee and
- SMSFs using a permitted limited recourse borrowing arrangement
Trust applications may require:
- The complete executed trust deed
- All amendments
- Confirmation of the trustee’s borrowing powers
- Trustee resolutions
- Identification of appointors, trustees, directors, unit holders and beneficiaries
- Financial statements and tax returns
- Distribution history
- Guarantees
- Evidence of the source and continuity of income
- Legal review where required and
- Confirmation that the transaction complies with the trust deed and applicable law.
Self-Managed Superannuation Funds
An SMSF may be considered for the acquisition or refinance of eligible investment property under a compliant limited recourse borrowing arrangement.
SMSF lending is specialised. Requirements may include:
- A complying SMSF
- An acceptable SMSF trust deed
- A correctly established holding or bare trust
- An eligible single acquirable asset
- Appropriate trustee structures
- Satisfactory member contributions and liquidity
- Independent legal and financial advice
- Compliance with superannuation law
- No prohibited financial assistance to members or related parties and
- Sufficient post-settlement liquidity.
Construction borrowing, property improvements, related-party acquisitions and non-arm’s-length arrangements are subject to significant restrictions and may not be available.
Understanding Different Income Models
Self-Employed Borrowers
Potential Benefits
- Control over business direction
- Flexibility over working hours and location
- The ability to develop multiple revenue streams
- Opportunities to build enterprise value
- Capacity to employ others
- Greater influence over pricing and customer selection
- The ability to reinvest profits for growth
- Access to legitimate business deductions
- Potential asset ownership through an appropriate structure
- Succession and family-business opportunities
- Scalable income not necessarily limited to a fixed salary
- Potential flexibility in salary, superannuation and distribution planning
- The ability to monetise specialised expertise
Potential Disadvantages
- Variable or seasonal income
- Personal exposure to business risk
- Limited paid leave
- Responsibility for tax, GST, superannuation and payroll obligations
- Working-capital pressure
- Customer concentration risk
- Longer hours
- Increased compliance costs
- Accounting and legal expenses
- Economic sensitivity
- Difficulty separating personal and business expenditure
- Reliance on key people
- Irregular drawings or distributions
- Delayed financial statements or tax returns
- Greater lender verification requirements
- Potential personal guarantees
- Reduced certainty during periods of rapid growth or restructuring
For lending purposes, taxable income alone may not always reflect the total underlying cash generation of an established business. Subject to policy and verification, certain legitimate adjustments or add-backs may be considered, such as depreciation or demonstrably non-recurring expenses. An add-back is not automatic and must be reasonable, sustainable and adequately evidenced.
PAYG Employees
Potential Benefits
- Predictable salary payments
- Payslips and readily verifiable income
- Employer-funded superannuation
- Paid annual and personal leave
- Workers compensation protections
- Potentially greater employment stability
- Simpler personal tax administration
- Clearer separation between employment and personal finances
- Easier income verification for many lending products
- Access to employee benefits
- Notice periods and workplace protections
- Lower direct exposure to business operating risk
Potential Disadvantages
- Limited control over remuneration
- Reduced flexibility over working conditions
- Dependence on one employer
- Redundancy or restructuring risk
- Limited ability to participate in business growth
- Fewer opportunities to deduct employment-related expenses
- Less control over when income is received
- Capped salary progression
- Restrictions on external work or business activity
- Limited capacity to build a saleable enterprise from employment alone
PAYG income may still require additional verification where the applicant is casual, probationary, commission-based, receiving overtime or bonuses, employed on a fixed-term contract or working in a volatile industry.
Company Director Employed by Their Own Company
A director may operate through a proprietary limited company while receiving PAYG salary and, where legally available, dividends.
Potential Benefits
- Regular PAYG salary
- A clearer division between company and personal finances
- Employer superannuation contributions
- The ability to retain profits for genuine business requirements
- Potential access to dividends from after-tax company profits
- Improved business continuity
- A separate legal entity for contracting and employment
- More formal governance
- Clearer payroll records
- Possible succession and ownership flexibility
- Potential scalability through additional employees or shareholders
- An income profile that combines salary with business performance
Potential Disadvantages
- Company establishment and administration costs
- ASIC, tax, payroll and accounting obligations
- Director duties and potential personal liability
- Additional lender verification
- Scrutiny of whether the salary is supported by company cash flow
- Possible volatility in dividend payments
- Restrictions on declaring dividends without sufficient profits and solvency
- Division 7A risks involving shareholder or director loans
- Fringe benefits tax considerations
- Superannuation obligations
- Risks associated with personal guarantees
- Complexity where business and personal expenses are mixed
- Possible dependence on one trading company
- Difficulty relying on retained earnings that are required for business operations
A director’s salary does not necessarily make the applicant equivalent to an unrelated PAYG employee. Mortgage House may need to assess both the individual and the employer company because the director may control the source, amount and timing of the salary.
Dividends
Dividends can be a legitimate component of a director-shareholder’s income where they are:
- Lawfully declared
- Supported by available profits
- Evidenced through company accounts, tax returns, bank statements and dividend statements
- Consistent with the company’s financial position
- Sustainable after allowing for business liabilities and working capital
- Not funded through unsustainable borrowing
Potential benefits include participation in company profits and flexibility in distributing after-tax earnings. Potential disadvantages include variability, dependence on profits, possible franking-credit complexity, timing differences and reduced reliability where dividends are irregular or would weaken the company’s liquidity. Borrowers should obtain independent tax advice. Mortgage House does not provide tax structuring advice.
Documentation Pathways
The terms Full Doc, Alt Doc, Low Doc and No Doc describe the nature and amount of evidence used in an assessment. They do not remove the need for a lender to make a sound credit decision.
For regulated consumer lending, a lender must make reasonable inquiries and take reasonable steps to verify the applicant’s relevant financial position. A reduced-document pathway must not be treated as permission to disregard serviceability, suitability or verification obligations.
Full Doc Applications
Full Doc applications use comprehensive and conventional financial evidence.
Typical Evidence
Evidence may include:
- Personal tax returns
- Notices of assessment
- Company or trust tax returns
- Accountant-prepared financial statements
- BAS
- Business bank statements
- Payslips
- Employment income statements
- Rental statements
- Loan statements
- Evidence of assets and liabilities and
- Contracts or other supporting records.
Benefits
Potential benefits include:
- Access to a wider range of products
- Potentially sharper pricing
- Potentially higher maximum LVRs
- Stronger evidence of serviceability
- Fewer assumptions
- Greater assessment certainty
- Easier comparison with standard lending criteria
- Better prospects of refinancing to mainstream products
- More transparent assessment of business performance
Disadvantages
Potential disadvantages include:
- Greater documentation requirements
- Longer preparation time
- Dependence on completed tax returns and financial statements
- Historical accounts potentially understating recent growth
- Legitimate non-cash expenses reducing reported profit
- Tax-effective structures creating assessment complexity
- Additional accountant costs and
- Potential delays where records are incomplete or inconsistent.
May Suit: Full Doc lending may suit established businesses with current tax returns, reliable financial statements and a stable trading history.
Alt Doc Applications
Alt Doc applications use credible alternative evidence where the latest conventional financial statements or tax returns are unavailable, incomplete or not representative of current performance.
Possible Evidence
Depending on policy, evidence may include:
- Recent BAS
- Business bank statements
- Accountant-prepared interim accounts
- An accountant’s confirmation
- Verified income statements
- Signed contracts
- Invoices
- Payment-platform records
- Cash-flow reports
- Rental income evidence and
- Other independently verifiable information.
Benefits
Potential benefits include:
- Recognition of current trading performance
- Flexibility where tax returns have not yet been lodged
- Suitability for growing or recently restructured businesses
- Potential recognition of recent contracts
- Faster access to relevant current-period evidence
- A pathway for applicants with credible cash flow but outdated historical accounts
- Reduced reliance on one historical financial period.
Disadvantages
Potential disadvantages include:
- Higher interest rates or fees than equivalent Full Doc products
- Lower maximum LVRs
- Fewer available products
- Additional verification
- Possible accountant involvement
- Greater scrutiny of bank transactions
- Reduced acceptance of volatile or concentrated revenue
- Exclusions for particular property or borrower types and
- The need for a future refinance strategy where pricing is higher.
May Suit
Alt Doc lending may suit:
- Established businesses awaiting completion of their latest returns
- Applicants whose recent BAS and bank statements show improvement
- Contractors with strong current contracts
- Professionals commencing private practice
- Businesses that have recently changed structure or
- Applicants whose current trading position is stronger than older financial statements indicate.
Low Doc Applications
Low Doc applications involve a more limited evidence set, usually supported by stronger equity, satisfactory credit conduct and additional risk controls.
Possible Evidence
Depending on the product, evidence may include a combination of:
- Borrower income declarations
- BAS
- Business bank statements
- Accountant confirmations
- Evidence of ABN or GST registration
- Asset and liability statements
- Contracts
- Lease or rental income
- Evidence of liquidity and
- A clear explanation of the loan purpose.
Benefits
Potential benefits include:
- A pathway where conventional financial documents are not currently available
- Reduced reliance on completed tax returns
- Recognition of established assets and equity
- Potential support for time-sensitive transactions
- Flexibility for experienced self-employed applicants
- And a possible bridge to future Full Doc refinancing.
Disadvantages
Potential disadvantages include:
- Higher rates
- Higher fees
- Lower maximum LVRs
- Stronger equity requirements
- Fewer product features
- Tighter acceptable-security rules
- More limited borrowing amounts
- Stronger credit-history expectations
- Additional declarations and accountant confirmations
- Potentially higher refinancing costs
- Reduced availability for regulated consumer purposes and
- A greater need to demonstrate a credible exit or transition strategy.
May Suit: Low Doc lending may suit an established self-employed borrower who has a strong asset position and demonstrable business cash flow but cannot immediately provide the complete Full Doc evidence required by conventional products. Low Doc does not mean that no assessment occurs.
No Doc Applications
The expression “No Doc” should be used cautiously. For regulated consumer credit, Mortgage House cannot simply disregard the applicant’s financial position or rely on an unsupported statement that repayments can be met. A limited-evidence commercial facility may be available in particular circumstances where:
- The credit is genuinely for a business or commercial purpose
- The transaction falls outside regulated consumer-credit requirements
- The borrower and purpose are verified
- The proposed security and exit strategy are acceptable
- The borrower receives appropriate independent advice
- The application satisfies applicable law and Mortgage House policy and
- The transaction is not being described as commercial to avoid consumer protections.
Potential Benefits
Where legally and commercially appropriate, potential benefits may include:
- Reduced reliance on conventional historical financial statements
- Faster collection of documents
- Consideration of asset strength and exit strategy
- Support for eligible commercial transactions
- And flexibility for sophisticated or asset-backed borrowers.
Potential Disadvantages
Potential disadvantages include:
- Materially higher pricing and fees
- Lower maximum LVRs
- Short loan terms
- Strict security requirements
- Fewer available lenders
- Significant refinance or exit risk
- Default-rate exposure
- Personal guarantees
- Legal and valuation costs
- Limited consumer protections where the transaction is genuinely commercial
- Potential enforcement and asset-loss consequences
- And heightened risk if the exit strategy does not occur.
A borrower should never select a reduced-document product merely to avoid providing information that is available or relevant. The most appropriate pathway is ordinarily the one that provides sufficient reliable evidence while delivering a suitable, sustainable and competitively priced result.
The Gamechanger
What Is a 100% Offset Account?
A 100% interest offset account is a transaction account linked to an eligible loan. The cleared balance held in the offset account is deducted from the linked loan balance when interest is calculated.
For example:
- Loan balance: $1,000,000
- Cleared offset balance: $200,000 and
- Interest calculated on: $800,000.
The money remains in the transaction account and may generally be accessed subject to the account terms, holds, payment processing rules and any security or control arrangements applying to the facility.
An offset account does not ordinarily reduce the contractual loan principal. It reduces the net balance on which interest is calculated while the money remains in the offset account.
Why It Can Be a Gamechanger for Business
Businesses often hold cash for:
- GST
- PAYG withholding
- Payroll
- Superannuation
- Supplier payments
- Insurance
- Tax instalments
- Working capital
- Future capital expenditure
- Seasonal expenses
- Contingencies
- Settlement or acquisition requirements
A properly structured 100% offset facility can allow eligible business cash to remain accessible while reducing interest on the linked loan.
Potential Benefits
Lower Interest Expense
The principal benefit is the potential reduction in interest while funds remain in the offset account.
Interest is generally calculated daily. The earlier money enters the offset account and the longer it remains there, the greater the potential interest benefit.
Working-Capital Accessibility
Unlike an additional principal repayment, money in an offset account remains in a separate transaction account and may be available for approved business expenditure. This can preserve liquidity while reducing interest.
Productive Use of Temporary Cash
Cash reserved for future tax, payroll, suppliers or capital expenditure may reduce loan interest during the period before it is required.
Cash-Flow Smoothin
Seasonal and project-based businesses may accumulate cash during strong periods and draw it down during quieter periods. An offset account may help lower interest during periods of higher liquidity.
Centralised Cash Management
An offset account can provide a central location for receipts and payments, subject to the business’s treasury controls and accounting requirements.
Potential Reduction in Effective Funding Cost
Where the offset balance is meaningful and consistently maintained, the effective economic cost of borrowing may be reduced.
Flexibility Compared with Permanent Debt Reduction
The borrower may receive an interest benefit without permanently applying the cash to the loan principal.
Support for Tax and Statutory Reserves
Funds earmarked for GST, PAYG withholding or other obligations may produce an interest benefit before payment dates, provided those amounts remain clearly identified and available when due.
Potential Faster Principal Reduction
Where contractual repayments remain unchanged while interest is reduced, a greater proportion of each principal-and-interest repayment may be applied against principal. The exact treatment depends on the facility terms.
Improved Treasury Visibility
Used with disciplined accounting, the account may improve visibility over business liquidity, upcoming liabilities and cash concentration.
Potential Disadvantages and Risks
The Benefit Depends on the Balance
A low or inconsistent offset balance may produce little benefit.
Fees or Pricing May Be Higher
A facility with an offset feature may have a higher interest rate, annual fee, package fee, account fee or establishment cost than a simpler loan.
The expected interest saving should be compared with all additional costs.
Liquidity Can Create Spending Risk
Easy access to the account may encourage expenditure of money that should remain reserved for tax, payroll or debt reduction.
It Does Not Eliminate Repayment Obligations
A large offset balance does not ordinarily extinguish the loan. Required repayments and other contractual obligations continue unless the loan terms state otherwise.
Not Every Account Is a True 100% Offse
Some products provide only a partial offset. Others may impose limits, exclusions or eligibility rules.
The product terms must be checked.
Not Every Loan or Split May Be Eligible
An offset may apply only to nominated variable-rate loan accounts or selected splits.
Accounting and Reconciliation Complexity
Using one account for multiple businesses, trusts, tax reserves or personal expenditure may create legal, accounting and audit problems.
Separate entities should not pool funds without appropriate legal and accounting advice.
Trust and SMSF Restrictions
Trustees must comply with the trust deed and their duties.
SMSFs must maintain strict separation of fund assets and comply with superannuation law. An offset structure must not create financial assistance, non-arm’s-length dealings, unauthorised access or mixing of fund and personal money.
Insolvency and Security Considerations
Business cash held with a lender may be subject to contractual rights, security
interests, set-oƯ rights or insolvency consequences.
Borrowers should obtain legal advice about the account terms and security documents.
Deposit and Account Eligibility Must Be Confirmed
The nature of the transaction account, account holder, linking arrangements and applicable protections should be confirmed before relying on the facility.
Behavioural Risk
An offset works most effectively when meaningful funds remain in the account. Regularly withdrawing the balance reduces the benefit.
Tax Treatment Requires Advice
Interest deductibility depends on the use of the borrowed funds and applicable tax law—not merely the identity of the security or the existence of an offset account. Borrowers should obtain independent tax advice and maintain clear records tracing the use of borrowed money.
Documentation We May Request
Depending on the borrower, purpose and documentation pathway, Mortgage House may request:
Identity and Structure
- Identification documents
- ABN and GST registration details
- ASIC company extracts
- Partnership agreements
- Trust deeds and amendments
- Trustee resolutions
- SMSF and bare-trust documents
- Ownership and control information
- Director, shareholder, partner, trustee and beneficiary details and
- Guarantees and legal authorities.
Income and Cash Flow
- Personal tax returns
- Notices of assessment
- Company, partnership or trust tax returns
- Financial statements
- BAS
- Business bank statements
- Payslips
- Single Touch Payroll or income statements
- Contracts
- Invoices
- Rental statements
- Accountant-prepared information
- Dividend statements
- Retained-earnings information and
- Evidence supporting proposed add-backs.
Assets, Liabilities and Conduct
- Loan statements
- Credit-card statements
- Lease and hire-purchase commitments
- ATO account statements
- Evidence of savings
- Proof of deposit
- Rates notices
- Existing mortgage statements
- Evidence of business assets
- Confirmation of tax liabilities and
- Explanations for material adverse credit events.
Property and Purpose
- Contract of sale
- Valuation
- Lease
- Building contract
- Plans and specifications
- Quantity-surveyor reports
- Invoices
- Development approvals
- Evidence of business purpose
- Refinance statements
- Payout figures
- A documented exit strategy for short-term lending
Funding Purposes We May Consider
Subject to policy and applicable law, funding may be considered for:
- Home purchase
- Residential investment
- Commercial property purchase
- Owner-occupied business premises
- Refinance
- Construction
- Renovation
- Bridging or relocation
- Working capital
- Business expansion
- Plant and equipment
- Debt consolidation
- Eligible ATO liability restructuring
- Equity release for a verified purpose
- Land banking within policy
- Property investment through an SMSF
- Professional-practice establishment and
- Other legitimate personal, investment, business or commercial purposes.
Smart Lending Combinations
Construction Finance
Construction funding may use progressive drawdowns so that interest is generally charged on the amount advanced rather than the entire approved limit from the first day.
Requirements may include a fixed-price building contract, approved plans, permits, valuations, staged inspections and evidence that the borrower can meet cost overruns.
Bridging and Relocation Finance
Bridging finance may allow an eligible borrower to purchase before selling an existing property.
The assessment must consider the peak debt, anticipated sale proceeds, holding costs, sale period and the borrower’s ability to manage the transaction if the sale is delayed or achieves less than expected.
Refinance and Cash-Out
Refinancing may be used to:
- Obtain a more appropriate structure
- Consolidate eligible liabilities
- Fund renovations
- Release equity
- Support working capital
- Restructure an ATO liability
- Or separate personal, investment and business debt
All cash-out purposes must be verified and acceptable under policy.
SMSF Property Lending
Eligible residential or commercial investment property may be acquired through a compliant limited recourse borrowing arrangement.
SMSF borrowing requires specialised legal, financial and tax advice.
Business and Property Finance
Where appropriate, business and property requirements may be addressed through separate loan splits or facilities so that:
- Loan purposes remain traceable
- Interest and repayments can be monitored
- Business and personal expenditure remain separated
- Accounting records are clearer
- Each facility can be reviewed independently
The Self-Employed Approval Process
Step
Tell Us Your Story
Provide:
- Your borrower structure
- The purpose of the loan
- The proposed property
- Available deposit or equity
- Recent income evidence
- Current liabilities
- Business history
- Contracts
- And any timing requirements
We will identify the likely Full Doc, Alt Doc or Low Doc pathway.
Verify & Structure
We assess:
- Income sustainability
- Business cash flow
- Allowable add-backs
- Credit conduct
- Existing commitments
- Ownership structures
- Security
- Valuation
- LVR
- Loan term
- Repayment type
- Offset requirements
- Guarantees
- And applicable legal or policy requirements.
Step
Step
Decide, Settle & Review
If approved, Mortgage House will document the terms, coordinate settlement and establish the agreed facilities.
After settlement, the structure should be reviewed periodically, particularly when:
- Financial statements are completed
- Revenue increases
- An LVR band improves
- Construction is completed
- A property is sold
- Adverse credit conduct is resolved
- The business develops a longer track record or
- A reduced-document loan may be refinanced to a more competitive Full Doc product.
Customer Scenarios
The following examples are illustrative only. They do not represent guaranteed approvals, rates or outcomes.
Medical Practitioner Entering Private Practice
A medical practitioner leaves the hospital system and commences private consulting under a recently established ABN. The application may be supported by:
- Professional registration
- Historical employment income
- Consulting contracts
- Billings
- BAS
- Business bank statements
- Savings
- And a clear operating model.
An Alt Doc pathway may be considered where current evidence is strong but two years of business financial statements are unavailable.
Recent Graduate Establishing a Consultancy
A graduate engineer establishes a consultancy with two signed client contracts and a meaningful savings buffer. The assessment may consider:
- Qualifications
- Experience
- Signed contracts
- Forecast expenses
- Commencement dates
- Cash reserves
- Personal commitments
- Proposed LVR
- And supporting transaction history.
A lower-LVR structure with a future performance review may be more appropriate than assuming the full projected revenue immediately.
Contractor Returning to a Previous Employer
A contractor returns to a previous employer under a fixed-term or day-rate agreement. Evidence may include:
- The new contract
- Prior employment history
- Recent invoices
- Bank statements
- BAS
- Evidence of continuity in the same occupation.
The lender will assess whether the arrangement represents sustainable ongoing income rather than relying only on the headline contract rate.
Builder Renovating a Principal Residence
A builder uses existing equity together with construction progress draws to complete major works. The structure may include:
- Staged advances
- Valuations
- Invoices
- Inspections
- Contingency funding
- Review after completion.
The borrower’s ability to separate their role as owner, builder and business operator must be carefully assessed.
Café Owner Restructuring an ATO Liability
A café owner refinances an eligible ATO liability into a separately identifiable loan split. The assessment should examine:
- Why the liability arose
- Current compliance
- BAS and bank statements
- Sustainable cash flow
- Repayment history
- Business viability
- Whether the refinance produces a genuine improvement rather than delaying an unresolved problem.
Established Business Using a 100% Offset
A profitable business purchases commercial premises and maintains a significant working-capital balance. The business deposits operating receipts into an eligible offset account and pays suppliers, payroll and tax obligations from that account.
While funds remain in the offset, the linked loan’s net interest-bearing balance may be reduced. The business maintains separate accounting controls for tax reserves, payroll and operating cash.
Frequently Asked Questions
Can I obtain finance with less than two years of ABN history?
Possibly.
A shorter trading history may be considered where the overall application is strong and supported by reliable evidence such as industry experience, previous PAYG employment in the same field, professional qualifications, contracts, BAS, bank statements, equity and satisfactory credit conduct.
What happens if my latest tax returns are not lodged?
An Alt Doc pathway may be considered using current alternative evidence, such as BAS, business bank statements, interim financial statements, contracts or acceptable accountant information.
Applicants remain responsible for meeting their tax obligations. An Alt Doc application should not be used to conceal overdue or unavailable information.
Can a company or trust borrow?
Yes, eligible companies and trusts may be considered.
Mortgage House will need to confirm that the entity and its controllers have the legal authority to borrow and provide security. Guarantees and complete structure documents may be required.
Can a partnership borrow?
An eligible partnership may be considered, subject to verification of the partners, income allocation, liabilities, authority to borrow, security ownership and guarantees.
Can directors use PAYG salary and dividends?
Potentially.
The assessment will examine both the individual and the company, including whether the salary and dividends are lawful, evidenced, sustainable and supported by the company’s cash flow.
Can you assist recent graduates?
Potentially.
Applications may be considered where the graduate has credible professional qualifications, contracts, industry prospects, equity, savings and a sustainable plan.
Can self-employed income be used for a construction loan?
Potentially.
The applicant must satisfy both the construction-finance requirements and the applicable income-verification pathway.
Can you assist with an ATO liability?
Eligible ATO liabilities may be considered as part of a broader refinance or business restructuring.
Approval depends on the reason for the liability, current compliance, the proposed security, serviceability and whether the new structure is sustainable.
Is an offset better than redraw?
They operate differently. An offset is generally a separate transaction account. Redraw represents access, subject to the loan terms, to eligible additional repayments previously made to the loan. Access, fees, tax consequences and lender controls may differ. Independent advice may be appropriate.
Is Low Doc the same as No Doc?
No.
Low Doc lending still requires evidence, verification and assessment.
A genuine No Doc commercial facility, where available, has materially different risks, pricing and eligibility requirements and is not a way to avoid responsible lending obligations.
Is an accountant’s letter enough?
Not necessarily.
An accountant’s letter may form part of an Alt Doc or Low Doc evidence package, but Mortgage House may require additional independent evidence such as BAS, business bank statements, financial statements or transaction records.
How much can I borrow?
Borrowing capacity depends on:
- Verified income
- Business performance
- Existing commitments
- Living and business expenses
- Interest-rate buffers
- Loan purpose
- Borrower structure
- Dependants
- Credit conduct
- Security
- LVR
- Product terms and
- Applicable credit policy.
An online calculator provides an estimate only and is not an approval.
Will I pay a higher rate because I am self-employed?
Not necessarily.
Pricing is generally influenced by the selected product, documentation pathway, LVR, security, credit profile, loan purpose and overall risk.
A self-employed applicant who qualifies under a Full Doc policy may be eligible for pricing comparable to another applicant with an equivalent risk profile.
Can I refinance from Low Doc to Full Doc later?
Potentially.
Once current tax returns and financial statements are available and the applicant meets Full Doc requirements, the loan may be reviewed for a different product or pricing structure.
Refinancing remains subject to a new assessment, valuation, costs and the lending policy applying at that time.
Does an offset account reduce my required repayments?
Not necessarily.
The offset balance generally reduces the amount used to calculate interest. Contractual repayment requirements continue according to the loan agreement.
Can business tax money be kept in an offset?
Potentially, provided the account structure is legally and operationally appropriate and the business retains enough money to meet its tax obligations when due.
Businesses should maintain accurate records and obtain tax and accounting advice.
Is offset interest saving the same as earning deposit interest?
No.
An offset account generally does not pay interest on the offset balance. Instead, the balance reduces interest calculated on the linked loan.
Why Self-Employed Borrowers Choose Mortgage House
Independent Lending Experience
Mortgage House has been providing an alternative to the major banks since 1986.
Multiple Evidence Pathways
We may assess Full Doc, Alt Doc and Low Doc applications according to the available evidence and applicable policy.
Structure-Aware Assessment
We understand sole traders, partnerships, companies, trusts, corporate trustees, director salaries, distributions and dividends.
Business and Property Understanding
We consider how the borrower, business, cash flow, finance purpose and property security operate together.
Direct Credit Capability
As a lender, Mortgage House can assess eligible scenarios directly against its credit policy rather than relying solely on a third-party lender selection process.
Practical Loan Structuring
Depending on eligibility, a facility may incorporate:
- Variable or fixed-rate components
- Principal-and-interest repayments
- Interest-only periods
- Loan splits
- Additional repayments
- Redraw
- Construction progress payments
- Bridging structures
- A 100% interest offset account
A Pathway—not Just a Transaction
Where a higher-cost or reduced-document facility is initially appropriate, the lending strategy should include measurable milestones for future review.
These may include:
- Completion of current financial statements
- Lodging tax returns
- Reducing LVR
- Establishing repayment conduct
- Resolving an ATO liability
- Completing construction
- Increasing liquidity
- Reducing other debt
- Transitioning to Full Doc lending.
Speak with a Self-Employed Lending Specialist
Your business does not need to fit a standard employment box.
Tell us:
- How your business operates
- How you receive income
- Which entity will borrow
- What property you intend to use as security
- How much you need
- What the finance will be used for
- Which financial evidence is currently available.
Mortgage House will identify the evidence pathway and loan structure that may be appropriate for your circumstances.
What you’ll get out of our FREE Self-Employed Home Buyers Guide
Reduce your stress
Feel empowered on your journey to home ownership by understanding every step of the process.
Build Future wealth for you and your family
Being self-employed doesn’t mean you can’t build a successful property portfolio.
Learn the ‘home loan’ lingo
Become fluent in financial jargon so you know what counts when it matters the most.
Determine how much you can borrow
Confirm what properties you can afford to save time and money searching for your dream home.
Repayment Calculator
Important Disclaimer: Repayments are indicative only and based on equal installments for the selected frequency. Fortnightly = ½ monthly; weekly = ¼ monthly. Actual repayments may vary.
Our Self Employed Loans
Comparison Rate Disclosure: The Comparison Rate for each home-loan product shown is based on a $150,000 loan over 25 years. Fees and charges may apply. Warning: The Comparison Rate is true only for the examples given and may not include all fees and charges. Different terms, fees or amounts could produce a different comparison rate.
Borrowing Power Calculator
Your Monthly Repayment
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You Can Borrow Up To
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Important Disclaimer: This is intended as a guide only. Details of terms and conditions, interest rates, fees and charges are available upon application. Mortgage House’s prevailing credit criteria apply. We recommend you seek independent legal and financial advice before proceeding with any loan. WARNING: * This mortgage calculator shows indicative repayments based on 12/26/52 equal repayments for monthly/fortnightly/weekly options.
Why Choose Mortgage House?
Important Information
This material is general information only and does not take into account your objectives, financial situation or needs.
All applications are subject to Mortgage House’s prevailing eligibility requirements, verification procedures, responsible lending obligations where applicable, valuation requirements, credit assessment and Underwriting Credit Policy.
References to Full Doc, Alt Doc, Low Doc or No Doc do not constitute a promise that a loan will be approved without appropriate inquiries, evidence or verification.
Reduced-document commercial lending is available only where permitted by law and policy. Describing a loan as business or commercial does not determine its legal treatment. The actual purpose and circumstances of the credit must be established.
Loan availability, interest rates, comparison rates, fees, LVR limits, accepted security, offset eligibility and product features may change. Obtain a personalised written quote and review the complete loan terms before proceeding.
Examples are illustrative and have been simplified. They are not representative of every borrower and do not guarantee approval, pricing, savings or refinancing.
Interest savings from an offset account depend on the loan balance, offset balance, applicable interest rate, fees, transaction timing and product terms.
Borrowers should obtain independent legal, tax, accounting, superannuation and financial advice before entering into a loan or changing a business, trust, company or SMSF structure.
Mortgage House | ABN 98 081 508 054 | Australian Credit Licence 393283