If you’re self-employed and looking for a home loan, there are different ways to show your income depending on how you run your business and the financial information available.
MA Money offers several income verification options for eligible self-employed borrowers, including Full Doc, Simplified Self-Employed and Alt Doc. The options available to you will depend on how long you’ve been in business, the financial documents you have available, and the loan you’re applying for.
In this article
- Self-employed income can be shown in different ways. You may be able to use tax returns, an Accountant Letter, business activity statements (BAS), or business bank statements, depending on the loan.
- Alt Doc gives you more flexibility. You may be able to use a Declaration of Financial Position and an Accountant Letter, or BAS or business bank statements.
- How long you’ve been in business matters. The length of time you’ve held your ABN and been registered for GST may affect which loan options are available to you.
- Preparing your documents can help you understand your options. Your broker can look at details of your business structure and current financial information and help you understand your options
What home loan options are available for self-employed borrowers?
MA Money has three ways for eligible self-employed borrowers to show their income.
| Income verification option | Documents |
| Full Doc | One year of personal tax returns and, if applicable, one year of company or trust tax returns, along with the corresponding Notice of Assessment (NOA), with none older than 21 months. |
| Simplified Self-Employed | For eligible company directors, three months of payslips and the latest financial year’s ATO income statement. |
| Alt Doc |
|
What is an Alt Doc home loan?
An Alt Doc home loan gives eligible self-employed borrowers another way to prove their income using recent business information.
For an MA Money Alt Doc application, you’ll need a Declaration of Financial Position along with one income verification document. You can provide an Accountant Letter, your latest two BAS, or six months of business bank statements.
How long do you need to be self-employed to get a mortgage?
Your business history can determine which MA Money home loan products may be available to you.
Current ABN and GST history requirements for MA Money’s residential lending products include:
- Prime: ABN history of more than 24 months and GST history of more than 12 months
- Near Prime: ABN history of more than 12 months and GST history of more than 6 months
- Near Prime Plus and Specialist: ABN history of more than 6 months and GST history of more than 1 day
Other lending criteria also apply. Your mortgage broker can help you understand which product may be appropriate based on your business history and circumstances.
How can you prepare for a self-employed home loan?
Having your financial information ready can make it easier for your broker to understand your circumstances and discuss options available to you.
Start with the current business and financial documents you already have on hand, such as:
- your ABN and GST registration details
- recent business financial information
- details about how your business is set up
- recent tax documents, if available
- recent BAS or business bank statements, if available
If you run your business through a company or trust, you may also need financial information for that entity.
If you’re considering a home loan, speak with an accredited mortgage broker. They can help you understand which MA Money option may suit your situation and guide you through the documents you’ll need.
This article provides general information only and does not constitute financial, tax or legal advice. It does not take into account your personal objectives, financial situation or needs. You should seek independent advice from a licensed professional before making any financial decisions. Applications for credit are subject to eligibility and lending criteria. Fees, charges and T&Cs apply and are available on request. MA Money Financial Services Pty Ltd ACN 639 174 315 Australian Credit Licence 522267.
