Best lenders for self-employed borrowers

The four policy levers that decide your outcome

• Years of returns: two years is standard, but several lenders accept one full year of tax returns and an ATO notice of assessment if you've been in the same industry.
• Add-backs: depreciation, one-off expenses, interest on debts being refinanced, superannuation above SG, and your own car allowance can often be added back to assessed income.
• Income averaging: some lenders average the last two years, some take the lower year, and some take the most recent year if it's higher and the trend is up. That single choice can change your borrowing power by six figures.
• Alt-doc: BAS statements, business bank statements or an accountant's declaration in place of tax returns — usually capped around 80% LVR with a rate premium.

Which lender type fits which self-employed borrower

• Two-plus years trading, clean financials, strong profit: mainstream bank at prime pricing.
• One year trading, or a big most-recent year: a lender with one-year and latest-year policy — usually a second-tier bank or a non-bank.
• Recently restructured, ATO payment plan, or returns not yet lodged: alt-doc through a specialist lender.
• Company and trust structures with retained profits: lenders that assess the whole group, not just your personal return.

How to make your file lend better

• Lodge on time. Unlodged returns are the single most common cause of a self-employed decline.
• Don't over-minimise tax in the year before you buy — every dollar of profit you strip out is roughly five to six dollars of borrowing power.
• Keep personal and business accounts genuinely separate.
• Clear or reduce business credit cards and overdrafts; lenders assess the full limit, not the balance.

A note on rates

Rates and policies change constantly, and every lender prices to its own funding costs and risk appetite. Nothing on this page is a rate quote — it's a guide to how these lender types differ so you know where to look.