How to Prove Your Self-Employed Income for a Home Loan

Self-employed borrowers can struggle to verify their income when applying for home loans. Thankfully, non-banks like Bluestone provide flexible options to help prove income for business owners.

According to a recent report by the Australian Small Business and Family Enterprise Ombudsman, small and medium-sized businesses with up to 200 full-time equivalent employees represent over 99 per cent of Australian businesses and contribute 57% of annual GDP. Despite this, business owners often struggle to access home loans from major banks, because their income can fluctuate, making it more complex to prove compared to salaried PAYG employees.

This can be frustrating for self-employed borrowers who want to purchase a family home or investment property, or use their home as the security for a business expansion loan. Thankfully, non-bank lenders like Bluestone offer finance solutions specifically designed for self-employed borrowers, which include a number of ways for self-employed customers to prove their income.

How does self-employment impact your home loan application?

Self-employed borrowers can sometimes struggle to secure the same home loans as their PAYG counterparts, especially when their latest tax returns are not yet filed, primarily due to timing issues. While employees usually only have to provide a few payslips to prove their level of income, self-employed borrowers may be required to provide audited tax records, so lenders can build a complete picture of their cash flow.

Self-employed income verification documentation

At Bluestone we offer a range of home loan products that suit borrowers with a variety of documentation levels for their income.

For example, if you have only been trading for 3 to 12 months, you can provide us with your business bank statements (for each month of trading if less than 6 months, otherwise most recent 6 months)  to demonstrate your cash flow. If your business is more established, but you haven’t yet lodged your taxes and BAS statements, you can provide a letter from your accountant that confirms your self-reported income levels along with your bank statements.

There are also other options available. We accept a mixture of lodged tax returns and notices of assessment, quarterly business activity statements (BAS), and/or business and personal bank records.

There’s a few other documents you will have to provide when applying for your home loan in order for Bluestone to assess whether the loan being applied for is suitable. This includes, but is not limited to, records of your past mortgage repayments or, if you’ve never had a mortgage, your tenancy ledger. Depending on the type of loan you apply for, we will also require records for past repayments on personal loans as well as recent credit card statements.

Find out how Bluestone can help

If you would like to learn more about Bluestone’s loan options for self-employed borrowers, have a look at our products here. If you would prefer to speak to a real person about your options, one of our home loan specialists would be glad to help. You can get in touch by calling 1300 608 658 or by requesting a quote here.


Bluestone Servicing Pty Ltd ACN 122 698 328 Australian Credit Licence 390 183 on behalf of the Credit Provider, Permanent Custodians Limited ACN 001 426 384. Lending criteria, terms & conditions, fees and charges apply. The information provided in this article is general in nature and should not be taken as constituting professional advice.  Because we do not know your individual financial circumstances it’s a good idea to talk to an accountant or financial adviser before taking out a loan.