Home Loans for Self-Employed Borrowers

Welcome to Zanda Wealth Mortgage Brokers, where we simplify the complex process of securing a home loan for self-employed borrowers in Australia. With nearly two decades of industry experience and a commitment to providing honest and realistic guidance, we are here to help you navigate the unique challenges you may face in the home loan process.

Special Loan Programs for Self-Employed Borrowers

Self-employed borrowers often face more hurdles when applying for home loans. This is why special loan programs have been established to cater to the unique circumstances of self-employed individuals. These programs can offer features like low-doc loans, which require less documentation than traditional loans or may have more flexible requirements for income verification. Thanks to our extensive network of over 100 different lenders, we at Zanda Wealth Mortgage Brokers can help you find a program that’s the perfect fit for your financial situation.

Interest Options for Self-Employed Borrowers

Understanding the type of interest you’ll be charged is crucial in planning your financial future. Here are your options:

Variable Rates

A variable-rate home loan for self-employed borrowers offers flexibility, allowing you to take advantage of interest rate drops. However, this also means your repayments could increase if the Reserve Bank of Australia (RBA) hikes up the rates. Given our wide network of over 100 different lenders, we can help you find the most competitive variable rate tailored to your needs.

Fixed Rates

Opting for a fixed-rate home loan allows you to lock in your interest rate for a certain period, usually between 1 to 5 years. This can provide peace of mind and stability in your repayments, especially valuable for self-employed individuals with fluctuating income. At Zanda Wealth Mortgage Brokers, we offer expert advice on whether a fixed rate suits your financial circumstances and business cash flow.

See What Your Repayments Might Look Like

Calculate ➜

Calculate ➜

Calculate ➜

Calculate ➜

What Are Mortgage Lenders Looking For?

Lenders have specific criteria they use to assess the creditworthiness of self-employed borrowers. These criteria often include:

Proof of Income

This is often the trickiest part for self-employed individuals. Lenders want to see stable income over a period, typically two years. Tax returns, profit and loss statements, and bank statements are commonly used.

Credit Score

A good credit score can go a long way in demonstrating your reliability as a borrower. The higher your score, the more likely you are to secure a loan with favourable terms.

Loan-to-Value Ratio (LVR)

This is the amount you wish to borrow, represented as a percentage of the property’s value. A lower LVR often results in more favourable loan terms.

Business Health

If you’re self-employed, the financial health of your business plays a significant role. Lenders may request to see your business financial statements in addition to your personal financial records.

Down Payment

The size of your down payment can also influence a lender’s decision. Generally, a larger down payment can make your loan application more attractive to lenders.

Required Documents

When you’re self-employed and looking to secure a home loan, you’ll need to provide more extensive documentation than salaried employees to prove your income and financial stability.

Here are the primary documents you’ll likely need:

  • Tax Returns: At least the last two years of personal and business tax returns to show consistent income.
  • Bank Statements: Both personal and business bank statements from the last three to six months to indicate your cash flow.
  • Profit and Loss Statements: Up-to-date profit and loss statements to prove your business is operational and generating income.
  • Business Registration: Documentation to prove you own the business, such as an Australian Business Number (ABN) or Certificate of Business Registration.
  • Credit Score Report: Although not a requirement, knowing your credit score can help you anticipate the loan terms you might be offered.
  • Down Payment: Proof of your down payment, often in the form of a bank statement, is needed to show you have sufficient funds for the initial home purchase.
  • Additional Financial Documents: Some lenders may require additional financial assessments like a balance sheet or even an income forecast.
  • Identification Documents: Standard identification forms like a driver’s license or passport.
Having these documents prepared in advance can speed up the loan approval process. At Zanda Wealth Mortgage Brokers, we ensure all details are meticulously addressed so you can submit your application with absolute confidence.

Credit Score and Its Importance

Your credit score serves as a numerical representation of your creditworthiness, which is essentially an estimate of how likely you are to repay borrowed money. Lenders in Australia use your credit score to evaluate the risk of lending to you. The higher your credit score, the more likely you’ll be approved for a loan, possibly with more favourable terms like lower interest rates.

Here’s a general guide to credit score ranges in Australia:

  • Excellent (800-1,000): Highly unlikely to have any adverse events harming your credit score in the next 12 months.
  • Very Good (700-799): Unlikely to have an adverse event in the next 12 months.
  • Good (625-699): Less likely to experience an adverse event like a default in the next year.
  • Average (550-624): Likely to experience an adverse event in the next 12 months.
  • Below Average (0-549): More likely to have adverse events on your credit file in the next year.

How to Improve Your Application

When you’re self-employed, presenting a strong loan application can require a bit more preparation.

Here are some tips to make your application more appealing to lenders:

  • Stable Income: Lenders look for consistency. If possible, try to show at least two years of steady income in your field. This can be proved through tax returns and profit and loss statements.
  • High Down Payment: A higher down payment not only reduces the amount you need to borrow but also shows the lender that you are financially responsible.
  • Healthy Savings: A decent amount of savings adds a layer of reassurance for the lender, showing that you can cover your mortgage payments if your income fluctuates.
  • Low Debt-to-Income Ratio: The lower your debts in comparison to your income, the more comfortably you can manage your mortgage payments.
  • Strong Business Records: If your business has been operational for several years, lenders may consider this stability favourably.
  • Professional Advice: Consider working with financial advisors or accountants who specialise in self-employed professionals. They can help prepare your documents and offer advice on improving your financial standing.

The Home Loan Process

Navigating the home loan process may seem daunting, especially if you’re self-employed. However, with the right information and planning, you can smooth out the path to homeownership. Here’s an outline of what you can expect in the home loan process in Australia:

Step 1

Initial Consultation

The journey often starts with an initial consultation with a mortgage broker or directly with a lender. This is a chance to discuss your needs, understand your borrowing capacity, and consider what loan products may be best suited for you.

Step 2

Document Collection
You’ll need to gather all necessary documents, such as tax returns, business financial statements, and proof of income. This stage is particularly crucial for self-employed applicants, as lenders want to assess your income stability and business viability.

Step 3

Loan Pre-Approval
This optional step can provide you with a clearer picture of what you can afford. With pre-approval, you can shop for a home with greater confidence.

Step 4

Property Selection

Once you have a budget in mind, the fun part begins: finding your dream home. During this stage, you may also require a valuation on the property to ensure it meets your lender’s criteria for mortgage approval.

Step 5

Loan Application
With a property in mind, you’ll complete the formal loan application, which includes specifying the loan type and terms you’ve discussed with your lender or broker.

Step 6

Your loan application goes through the underwriting process. Here, the lender will thoroughly review your financial status and the property details to make a final decision on your loan approval.

Step 7

Loan Approval
If everything checks out, the lender will approve your loan. This often comes with a loan contract that you’ll need to review and sign.

Step 8

This is the final stage, where legal ownership is transferred from the seller to you. Once the settlement process is completed, you can move into your new home!
Step 9
Ongoing Repayments
The home loan process doesn’t end at settlement. You’ll need to make regular repayments according to your loan agreement. Keeping a strong repayment history can positively impact your credit score and future borrowing opportunities.
Understanding these steps ahead of time will equip you with the knowledge to navigate the home loan process effectively, even if you’re navigating the additional challenges of being self-employed.

Why Choose Zanda Wealth Mortgage Brokers?

Navigating the home loan process can be complicated, especially for self-employed borrowers who may face unique challenges in obtaining a mortgage. Here’s why choosing Zanda Wealth Mortgage Brokers can make all the difference:

Base Company Founded in 2006

With a track record that spans over a decade, our experienced professionals are well-equipped to guide you toward your financial aspirations. Our deep expertise in the finance and property sectors enables us to handle a variety of scenarios successfully, helping clients realise their dreams.

Realistic & Honest Guidance

The mortgage industry is often filled with grand promises that rarely materialise. At Zanda Wealth Mortgage Brokers, we stand for honesty and realism. We provide accurate information and set realistic expectations so you can make informed decisions aligned with your long-term financial goals.

Comprehensive and Client-focused Service

We understand that each client’s financial circumstances and goals are unique. That’s why we offer tailored services that cater specifically to your needs. We extend our role beyond that of traditional brokers to become your partner in achieving financial stability and creating wealth.

Wide Network of Lenders

With access to over 100 different lenders, we can assure you the best possible deal tailored to your needs and budget. Our extensive network allows us to negotiate on your behalf, making us a dedicated advocate in your financial journey.

What Our Valued Clients Have to Say About Us

I've used Zanda Wealth on a couple of occasions for residential property financing and have recommended several friends. Thanks Austin + Lea.
Gianni ZumpoGianni Zumpo
00:45 06 Dec 23
Very professional very helpful, was always a pleasure working with them
Netta ZumpoNetta Zumpo
02:37 05 Dec 23
The team and Zander Wealth have been incredibly helpful, have always taken the time to answer my questions and guide me through the process. Extremely quick turn around and great communication. I have used them twice and will continue to in future.
01:21 05 Dec 23
Good experience. They just seem to know what is going on and everything was really hassle free.
Kean OoiKean Ooi
01:14 05 Dec 23
Austin was very experienced and professional and quick to respond and action on things as they came up. Highly recommended if you are looking for a loan 🙂
Clare LaurieClare Laurie
07:21 02 Nov 23
I have been using Zanda Wealth Mortgage brokers for both my home and investment mortgages since 2018. The service that Austin and his team have provided has always been exemplary. I know I can always rely on the team to get a great rate and the most effective loan as they take the time to understand my financial needs.I highly recommend Zanda Wealth Mortgage Brokers.
Russell BrewerRussell Brewer
13:51 01 Nov 23
The Zanda Wealth team is brilliant - offering a service that consistently goes above and beyond my expectations. This is the second home that my family has purchased with the assistance of the experienced folks at Zanda Wealth...and I honestly can't imagine buying a property without them. Not only have they been able to consistently secure my family an amazing home loan rate, but the level of personalised support offered is unmatched - patiently holding our hands as we have navigated through every last step of the home buying process. I recommend their services without hesitation!
Gabbie CookGabbie Cook
06:19 17 Oct 23
This is the second time we have worked with Austin and the team at Zanda Wealth, and we are extremely satisfied and incredibly happy with the outcome, and how smooth, stress-free and prompt the whole process was.Our experience with refinancing was made so simple and was such a breeze from start to finish. We were involved in every step along the way, with constant communication and friendly staff answering any questions we had at any time of day, which was very reassuring.We look forward to working with Zanda again in the future! 😊
Mithu MasumMithu Masum
04:36 28 Sep 23
Zanda is the only place I go for all mortgage and property investment related advice. Austin has been helping me since 2011 when we first bought our first home. He always thinks the long term and gives us the best advice as clients. He is simply the best!
Joanne MJoanne M
11:12 15 Sep 23
This is the second time Austin and the Zanda team have arranged finance for us and both experiences have been equally as great. Austin is very knowledgeable, gives well researched advice and has a great way of explaining technical things in a way that anyone can understand. Zanda secured a new mortgage for us quickly and at an excellent rate lower than our existing mortgage. Lea managed all of the administration prior to settlement with friendly, responsive communication and nothing was too hard. I have recommended Zanda to several friends and will continue to do so.

Locations We Serve



Gold Coast








Frequently Asked Questions

What if I only recently became self-employed?

If you’ve recently become self-employed, obtaining a home loan may be more challenging but it’s not impossible. Lenders generally prefer borrowers to have at least two years of self-employment history. However, some lenders may be willing to consider less, especially if you have a strong credit score, substantial savings, or a significant down payment.

How do self-employed home loans differ from regular home loans?

Self-employed home loans typically require more extensive documentation to prove income and financial stability compared to salaried employees. This can include tax returns, business financial statements, and bank statements. The rates might be slightly higher or you may need a larger down payment to qualify.

What is the minimum down payment needed?

In Australia, the typical minimum down payment for self-employed borrowers is about 20% of the property’s value. However, it can vary depending on the lender’s policies and your financial circumstances.

Do I need Private Mortgage Insurance (PMI)?

In Australia, instead of PMI, there’s Lenders Mortgage Insurance (LMI) which is generally required if your down payment is less than 20%. LMI protects the lender in case you default on the loan. The cost can be upfront or rolled into the loan repayments.

How does the loan approval timeline differ for self-employed borrowers?

The loan approval process may take a bit longer for self-employed borrowers due to the additional documentation and scrutiny involved. Ensure you have all your documents in order to expedite the process.

Are there any special government programs for self-employed borrowers?

There aren’t specific Australian government programs aimed solely at self-employed homebuyers. However, you can still access the same first-home buyer grants and schemes that are available to other buyers, subject to meeting the eligibility criteria.

Can I use business assets as collateral for my home loan?

While most lenders prefer real estate as collateral, some may allow you to use business assets as additional collateral for your home loan. This would be subject to the lender’s individual terms and criteria.

How are variable and fixed interest rates different for self-employed borrowers?

  • Variable Rates: Variable interest rates can go up or down depending on market conditions. This offers flexibility in repayments and the opportunity to make extra payments without penalty. However, your monthly repayments could increase if interest rates rise.
  • Fixed Rates: Fixed interest rates remain constant for a set period, usually 1 to 5 years, offering stability in your repayments. This makes budgeting easier but lacks the flexibility to make large extra payments without incurring a penalty.

Choosing between the two depends on your risk tolerance, financial stability, and personal preference.

Home Loans For Self-Employed Borrowers

Let’s Get Started!

Ready to embark on a hassle-free journey to homeownership? Schedule a free strategy session with us and kickstart your home-buying adventure.
Share This