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Home Loan Variable: 5.94% (5.95%*) • Home Loan Fixed: 5.79% (6.39%*) • Fixed: 5.79% (6.39%*) • Variable: 5.94% (5.95%*) • Investment IO: 6.14% (6.58%*) • Investment PI: 5.99% (6.61%*)

How to Apply for a Self Employed Home Loan



An easier way to Apply for a Self Employed Home Loan (As Long As You Get Paid A Salary).

One of the most difficult challenges for self-employed people and small business owners is to get their home loans approved. Because their incomes are so closely linked to the performance of their business, lenders require a lot of additional documentation that a PAYG employee would just never be asked for.

It has led many people in this situation to just take what they can get, or use alternative proof home loans that come with a higher interest rate just because of the amount of paperwork involved in getting their application in to get their loan approved.

Thankfully the lending world is now coming around and is being more accommodating about how self-employed people and small business owners can show proof of income.

Lenders Now Offer Home Loans to Self Employed Applicants who Pay Themselves a Salary

While it won’t solve every small business owner or self-employed person’s proof of income issues, if you own a company that pays you a fixed salary there may be an easier way for you to be approved for a home loan. Company owners who pay themselves a regular salary can now use their payslips from their business and/or bank statements confirming their last 6 months’ salary credits as proof of income. A letter from your accountant confirming your company is profitable may also be needed.

The drawback is – lenders will assess your ability to pay based on your regular salary only. So any additional drawings/dividends/profit-sharing from your business will be ignored for the purposes of this application.

But for loans with a low LVR or home loans considered relatively low risk, it’s much easier than getting all your business financials in order like it used to be.

Now all you may need is one or more of these documents:

  • Six months’ bank statements showing your salary credited to the account
  • A payslip showing more than six months of Year-To-Date (YTD) income OR
  • A payslip with less than six months YTD income and the most recent financial year Income Statement or personal tax return

Some lenders may also require a letter from your Accountant on their company letterhead confirming one or more of the following:

  • The date your business started trading
  • The company has sufficient profits to meet the business commitments, and
  • The business has traded profitably for the last two years
  • The company is able to pay its liabilities
  • An accountant’s letter is not required if you can provide profit-and-loss statements for the last two years showing you made a profit in each year.

If you are self-employed or a small business owner and you haven’t checked your interest rate recently or are looking to refinance to access your equity for any reason or are looking to move homes then Mortgage World Australia will work out the best way to get you the home loan with the least amount of effort and a great interest rate call, 1300 661 211 or register online at and we will take care of the rest.

Ask us a question and we will get back to you within 1 working day

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