Last updated: October 2026 · Reviewed by John Pierre Saliba, Director and Mortgage Broker, MFAA Accredited
Getting a Home Loan as a Sole Trader
Sole traders face a specific challenge: your income isn't on a payslip. It's in your tax returns, business bank statements and BAS, and lenders assess it very differently. We specialise in presenting sole trader income in a way lenders can assess confidently.
Many lenders use taxable income, which, after legitimate deductions, can be significantly lower than actual cash flow. We identify lenders who add back depreciation, home office and other non-cash deductions, dramatically increasing your assessed income and borrowing capacity.
Documentation Options
Full Doc
Last 2 years of personal and business tax returns, 2 years of ATO Notices of Assessment, and recent BAS statements. Best rates and broadest lender panel when income is consistent or growing.
Alt Doc
12 months of BAS statements, 6 months of business bank statements, and an accountant's letter confirming income. Rates are 0.3–0.7% higher, but access to the loan is what matters.
Worked Example: Sole Trader Buying in Sydney
- Trade: Freelance graphic designer, 3 years ABN
- Taxable income: $78,000 | Add-backs: $18,000 | Assessed: $96,000
- Purchase price: $850,000 | Deposit (20%): $170,000 | Loan: $680,000
- Monthly repayment (6.49%, 30yr P&I): ~$4,299
Tips to Strengthen Your Application
- Lodge your most recent tax return before applying
- Ensure BAS statements are lodged on time, gaps raise red flags
- Keep business and personal bank accounts separate
- Work with an accountant who understands mortgage add-backs
- Avoid new business debt 3–6 months before applying
