---
title: Self Employed Home Loans Melbourne | Low & Full Doc | GNT Finance
description: Self-employed home loans for Melbourne business owners, sole traders and contractors. Full-doc, low-doc and alt-doc options, with add-backs explained.
url: https://gntfinance.com.au/services/self-employed-loans/
section: services
updated: 2026-09-01
author: Gorakh Timilsina, GNT Finance
---

# Self-Employed Home Loans

**In short:** Self-employed borrowers can get the same home loans as employees, but proving income takes more work. Full-doc loans use one or two years of tax returns and financials; low-doc or alt-doc loans use BAS statements, business bank statements or an accountant's letter instead. GNT Finance presents your business income the way lenders want to see it, including legitimate add-backs, so you borrow what you actually qualify for.

Tradies in Craigieburn, transport operators in Kalkallo, cafe owners in Sunbury, rideshare drivers, IT contractors and family businesses across Epping and Roxburgh Park all hit the same problem when they want a home loan: their income looks smaller on paper than it is in reality, or it arrives in lumps rather than fortnightly payslips. Banks rarely read financials with any generosity; a broker who once assessed loans for a living does.

## Borrowers this page is written for

- Sole traders and partners in a trade, transport, retail or professional business.
- Company directors who pay themselves a mix of salary, dividends and drawings.
- Contractors and subcontractors paid on invoice, including those working through their own ABN in construction or IT.
- Gig-economy workers with income from several platforms.
- Business owners whose latest tax return is not lodged yet and who need to use BAS or bank statements.
- Newer businesses with an ABN of one to two years, where most banks say no.

If you are buying a business premises rather than a home, see our [commercial property loans](/services/commercial-property-loans/) page instead.

## Full-doc, low-doc and alt-doc explained

| Loan type | Income evidence | Typical LVR limit | Rate | Who it suits |
|---|---|---|---|---|
| Full-doc | 2 years tax returns, financials and notices of assessment | Up to 95% with LMI | Standard | Established businesses with lodged returns |
| Full-doc (1 year) | Most recent year's return and financials only | Up to 90% | Standard or slightly higher | Businesses whose latest year is much stronger |
| Alt-doc | 6–12 months BAS, or 3–6 months business bank statements, or accountant's declaration | Usually 80%, some to 90% | Higher, often 0.5–1.5 points | Returns not yet lodged, or income understated by deductions |
| Low-doc (legacy style) | Self-declaration plus ABN and GST registration | Often 60–70% | Higher again | Rare now; largely replaced by alt-doc |
| Specialist or non-conforming | Flexible mix, accepts credit blemishes | 70–85% | Higher | Recent defaults or complex income |

Full-doc is always the first option because it gives the widest lender choice and lowest pricing. Alt-doc comes into play when returns are not ready, taxable income has been minimised aggressively, or the business has grown faster than last year's figures show. Our [low-doc loans guide](/guides/low-doc-loans-explained/) covers the trade-offs in more depth.

## How we handle a self-employed application

1. **Income mapping.** We take your last two years of returns, financials and BAS and work out three income figures: what the ATO sees, what the lenders will accept, and what the business genuinely produces. The gaps between them tell us which lender and document type to use.
2. **Add-backs.** Depreciation, one-off expenses, interest on debts being refinanced, superannuation above the compulsory rate, and salary paid to a spouse who is also on the loan can often be added back to your assessable income. This step alone can lift borrowing capacity by tens of thousands of dollars.
3. **Lender fit.** Some lenders average the two years, some take the lower year, some accept the latest year if it is higher by no more than a set percentage. We match your income pattern to the policy that treats it best.
4. **Clean file.** Self-employed applications fail mostly on missing paperwork, not weak income, so we assemble everything before lodging.
5. **Approval and settlement.** We manage valuation, conditions and settlement, and review again when your next financials are done.

## Eligibility and documents

Minimum ABN age is usually two years for full-doc and twelve months for most alt-doc products (a few accept six months), with GST registration where turnover requires it. Then:

**Full-doc:**
- Two years' personal and business tax returns
- Two years' financial statements (profit and loss, balance sheet)
- Two years' ATO notices of assessment
- Recent business and personal bank statements
- ATO portal printout showing tax debt position

**Alt-doc:**
- ABN and GST registration evidence
- Either 6 or 12 months of BAS, 3 to 6 months of business bank statements, or a signed accountant's letter confirming income
- Self-declaration of income form

Both also need the ID, deposit evidence, liabilities and living-expense details in our [documents checklist](/guides/home-loan-documents-checklist/). ATO debt is not always a deal-breaker, but it must be disclosed and usually paid or on a payment plan.

## Worked example: a Kalkallo electrician

Prakash runs an electrical contracting business as a sole trader from Kalkallo. His tax returns show net business income of $88,000 last year and $76,000 the year before. He and his partner, who earns $62,000 as a nurse, want to buy a $700,000 house in Donnybrook with a $140,000 deposit.

At a lender that takes the lower of two years, Prakash's income is assessed at $76,000. At a lender that averages, it is $82,000. At a lender that accepts the most recent year, it is $88,000. His financials also show $9,500 of depreciation on a work vehicle and $3,200 of interest on a business loan he intends to clear from savings. Both are added back, taking his assessable income to $100,700 at the lender that uses the latest year.

The gap between $76,000 and $100,700 of assessable income is roughly $150,000 of borrowing power. With the add-backs and the right lender, the couple is approved for the $560,000 loan they need at 80% LVR, avoiding LMI.

For illustration, at 6.00% p.a. over 30 years, $560,000 costs about $3,357 a month. At 25 years it is about $3,608. Check your own scenario in the [mortgage repayment calculator](/calculators/mortgage-repayment/) and [borrowing power calculator](/calculators/borrowing-power/).

## Fees and rate expectations

A self-employed borrower on a full-doc loan pays exactly what an employee pays: the same rates, the same application fees of $0 to $700, and no LMI below 80% LVR. Alt-doc loans generally carry a rate loading of 0.5 to 1.5 percentage points and sometimes a risk fee of 1% to 2% of the loan amount instead of LMI. On a $560,000 alt-doc loan, a 1 point premium costs about $350 a month more, which is why we push for full-doc where possible and why [refinancing](/services/refinancing/) from alt-doc to full-doc once returns catch up is a standard follow-up.

## Tips that save self-employed borrowers money

- **Talk to your accountant before minimising income.** Every dollar of deductions claimed in the year before you buy is a dollar that may not count toward your loan. There is a balance between tax efficiency and borrowing capacity.
- **Lodge returns early.** A return lodged in July gives you full-doc access three months sooner than one lodged in October.
- **Keep business and personal accounts separate.** Bank-statement lenders need clean business turnover.
- **Clear or restructure ATO debt before applying.** A payment plan in place is usually enough, but an undisclosed debt found on the portal printout will sink the application.
- **Do not restructure right before buying.** Moving from sole trader to company resets the clock with many lenders.
- **Check your credit file.** Late payments on a business credit card are treated the same as personal ones. Our [credit score guide](/guides/credit-score-and-home-loans/) explains how to check and fix it.

## Why a broker matters more when you work for yourself

Bank staff work to a checklist; when your income does not fit it, you get a decline or a lowball figure and rarely learn why. A broker who has sat in the credit officer's seat, as Gorakh Timilsina did for years before founding GNT Finance, knows which lenders read financials with judgment, which add-backs each will accept, and how to explain an unusual year in a way that satisfies policy. Because lenders pay us at settlement, there is no cost to you for our home-loan service in most cases, and our [Best Interests Duty](/legal/best-interests-duty-mortgage-brokers/) obliges us to recommend the loan that suits you rather than the easiest one to place. Our full [self-employed home loan guide](/guides/self-employed-home-loan-guide/) goes deeper on lender policies.

## Frequently asked questions

### How long do I need to be self-employed to get a home loan?

Two years of trading with lodged tax returns opens up nearly every lender at full-doc pricing. With one year of returns, a smaller group of lenders will still offer standard rates. Under a year, you are looking at alt-doc products with some lenders accepting an ABN as young as six months, provided you were in the same industry beforehand.

### Can I get a home loan if I have not lodged my latest tax return?

Yes. Alt-doc lenders accept BAS statements, business bank statements or an accountant's declaration in place of returns. Some full-doc lenders will also accept the previous year's return if the current one is not yet due. The trade-off is a higher rate or a lower maximum LVR, so it often pays to refinance once the return is lodged.

### What are add-backs and how do they help?

Add-backs are expenses on your financials that lenders agree do not reduce your real cash income, such as depreciation, one-off costs, and interest on loans being paid out. They are added back to your net profit for assessment. On a typical trade business, add-backs of $10,000 to $20,000 are common and can increase borrowing capacity by $60,000 to $120,000.

### Do self-employed borrowers pay higher interest rates?

Not if you qualify for a full-doc loan; the rate is identical to a salaried borrower's. Higher rates apply only to alt-doc and specialist products where the lender is accepting less income evidence. Many of our clients start on alt-doc and move to a standard rate at their next refinance once the returns support it.

### Can my business pay the deposit?

Funds drawn from the business can be used, but the lender will want to see that withdrawing them does not damage the business's working capital, and the money must be shown as a legitimate drawing or dividend rather than an unexplained transfer. Retained profits in a company usually need an accountant's letter confirming they are available to you.

## Talk to GNT Finance

Send us your last two years of returns and financials, or your BAS if the returns are not ready, and we will tell you what you can borrow across several lenders and which document path gets the best rate. We are in Mickleham, serve all of Melbourne and Victoria, and speak English, Nepali and Hindi. [Book a free consultation](/contact/) or call 0426 403 703.