Mortgage broker for self-employed borrowers

Content updated 2 November 2026.

Full-doc loan requirements for self-employed borrowers

A full-documentation home loan uses conventional financial records to verify income. Being self-employed does not automatically mean you need a low-doc loan. The first step is to check whether your current records support a full-doc application and which lender’s policy fits your business.

Use the checklist below to prepare for a discussion. The lender will confirm the documents, reporting periods and any additional evidence required for your circumstances.

Full-doc home loan document checklist

• Personal tax records: recent complete personal tax returns and ATO notices of assessment.
• Business financial records: relevant business tax returns and accountant-prepared financial statements, including profit and loss information and balance sheets where required.
• Business structure: ABN, trading history and ownership details; ask what company, partnership or trust documents apply.
• Current trading: have recent BAS and business bank statements available if requested to clarify performance since the last financial year.
• Other income: supporting records for any salary, rent or other income included in the application.
• Identity and finances: identification, living expenses, savings, deposit or equity evidence, and existing loan and credit-card details.
• Property details: purchase contract when available, or details of the property and loan being refinanced.

If your latest returns or financial statements are still being prepared, check the low-doc home loan document checklist to see which alternative records to gather, such as lodged BAS or business bank statements.

Do I need one or two years of financials?

Do not assume that one reporting period applies to every lender or business structure. For example, CommBank’s published checklist distinguishes sole traders from other self-employed applicants and requests business financial statements showing two consecutive years of profit and loss. It also describes a possible simplified verification process for eligible self-employed people receiving a regular salary.

Ask which financial years must be finalised and lodged, whether notices of assessment are required, and how recent trading will be checked. A shorter-document pathway is not a promise of approval. A new business, a change of entity or a significant change in earnings needs its own review.

How your business structure affects the income review

A lender needs to understand where the income comes from, which entity earns it and what is available to support repayments. Bring an outline of the structure rather than assuming a payslip or business bank balance tells the full story.

Sole traders and partnerships

For a sole trader, explain the relationship between business receipts, operating expenses and taxable income. For a partnership, identify your ownership share and the income allocated to you. Transfers into a personal account do not by themselves establish assessable income.

Company directors receiving a salary

If you own or control the business paying your salary, tell the lender. A salary from your own company may still require a self-employed assessment. Clarify salary, dividends, ownership and retained profit so income is not counted twice.

Some lenders publish simplified verification options for eligible business owners receiving a regular salary. CommBank, for example, describes salary-credit and profitable-trading evidence for its pathway. This is a lender-specific option, not a way to avoid checking business sustainability.

Trust and multiple-entity income

Identify the trustee, beneficiaries, distributions and related companies, together with debts or guarantees connected to each entity. Ask which trust deeds, financial statements and supporting records are needed. Do not assume every distribution will be accepted as ongoing income.

Turnover, profit and drawings are different

Illustration only: a sole trader with $240,000 in revenue and $150,000 in business expenses has $90,000 remaining before any further tax or lender adjustments. Moving $110,000 into a personal account does not turn that transfer into $110,000 of income; it could include prior savings or other funds. This is arithmetic, not a lender’s servicing calculation.

Provide supporting records for any proposed add-back, such as a non-recurring expense. The lender decides what it accepts. Ask your accountant to explain the figures accurately rather than changing business records to fit an application.

What if income has increased or decreased?

Prepare a short explanation of the trend and recent records supporting it. A strong latest year does not guarantee the lender will use that figure, and an average may hide a recent decline. Seasonal work, a major new contract, loss of a client, a restructure or a change from employment to self-employment should be discussed early.

For a new business or only one year of financials, first establish the active trading history and documents available. A short ABN history, previous experience and confirmed contracts may be relevant context, but none guarantees acceptance. Where alternative evidence is appropriate, see the low-doc home loan requirements guide for that separate pathway.

Can I get a home loan with only one year of self-employed income?

Potentially, but having one year of income records is different from having operated a business for only one year. A lender may consider a shorter set of financial records for an established business while applying different rules to a newly started business. Confirm both trading-history and documentation requirements.

For a specific example, Pepper Money’s published self-employed guidance lists one or two years of tax returns and notices of assessment, or one or two years of financial statements prepared by a registered accountant or tax agent, for full-doc applications. It says the exact evidence depends on a full review. This does not mean every applicant with one year of records qualifies.

The same lender describes an alt-doc pathway with at least six months of ABN and GST registration, a declaration of financial position and an accepted supporting option: six months of business bank statements, six months of lodged BAS or its accountant’s letter, subject to conditions. This is one lender’s example, not a recommendation or a universal minimum. Rates, fees and LVR limits may differ between pathways.

Before applying, check whether the available year is finalised, what current trading evidence is required and whether the deposit, credit history and repayment assessment fit the proposed product. Compare waiting for further records with any suitable option available now; approval is not guaranteed. See the low-doc document checklist for alternative evidence.

Business debts and cash flow still matter

List business loans, equipment finance, overdrafts, credit limits, tax debts and repayment arrangements, plus any personal guarantees. Explain which entity is responsible and where repayments appear in the accounts. Keep business working capital, tax obligations and a cash buffer separate from the amount you expect to contribute to the property.

Prepare for a self-employed home loan review

1. Summarise your business structure, ownership and active trading history.
2. Gather the latest finalised financials and identify any returns still being prepared.
3. Reconcile recent trading with the historical figures and explain material changes.
4. List personal and business debts, expenses, deposit or equity and the property goal.
5. Compare eligible full-doc and alternative-document options using actual costs and requirements before submitting an application.

A borrowing capacity estimate cannot determine which business income a lender will accept. For refinancing, also compare fees, the remaining term and total cost through our refinance review process.

Full-doc versus alt-doc home loans

The main difference is how income is verified. Both pathways require an affordability assessment and suitable security. “Low-doc” is often used when discussing alternative-documentation lending; it does not mean no documentation.

As one published example, Pepper Money lists full-doc and alt-doc evidence separately. Its alt-doc pathway includes a declaration of financial position plus accepted supporting evidence, with eligibility conditions. An accountant’s letter alone is not a universal substitute for a full application.

Prepare a consistent picture of your income

Before applying, ask your accountant to help explain differences between tax returns, financial statements and current trading. Identify one-off items, changes in ownership and any business commitments. Turnover, business profit, salary and drawings are different figures; they should not be combined in a way that counts the same income twice.

When to speak with a mortgage broker

Speak with a broker before applying if your latest returns are unfinished, you have only one year of financials, or your income or business structure has changed. Bring the records you already have and a list of what’s pending. Chris can help you identify gaps and compare whether your records support a full-doc application or an alternative documentation option.

Book a self-employed home loan document review.

Sources checked 2 November 2026: CommBank home loan application checklist, CommBank business-owner verification and Pepper Money self-employed documentation. These are lender examples, not recommendations or universal eligibility rules. Requirements can change.