Self-employed
Can I get a home loan with only one year of business financials?
Some lenders can use the latest year, but they still test history, sustainability and supporting evidence.
Short answer
Yes, some Australian lenders can assess a self-employed application using one completed financial year. Eligibility depends on the length and nature of trading, the quality of the accounts, the latest result and the lender's policy. Other lenders require two years or use a two-year average, so lender selection is important.
The latest year must be representative
A lender is more comfortable when the latest result reflects normal ongoing trading. A sudden increase may require BAS, interim accounts, contracts or business bank statements. A sharp fall can lead to the lower figure being used even if the previous year was stronger.
- Use final lodged documents where policy requires them.
- Explain unusual income or one-off expenses.
- Reconcile the accounts with tax returns and statements.
- Disclose all related business entities and debts.
The lender still examines the background
One-year assessment does not mean the earlier period is irrelevant. The lender can check ABN history, prior employment, industry experience, earlier returns and current trading to decide whether the latest income is sustainable.
What documents may be required
Expect the latest business and personal tax returns, financial statements and notices of assessment. Depending on structure, the lender may need company, trust or partnership accounts, current liabilities and details of ownership. BAS and recent statements may support trading since year end. If figures differ across documents, prepare a reconciliation. A clean set of accounts is more useful than a large profit that the lender cannot trace or understand.
How growth is treated
Growth can be accepted when there is a credible reason and current evidence. Examples include new contracts, expanded capacity or completion of a start-up phase. However, an assessor may cap the increase, average years or use a lower figure under policy. Forecasts alone are rarely equal to completed results for a residential loan. Explain what drove growth, whether margins are stable and whether extra working capital or debt is needed to maintain it.
Compare one-year and alt-doc options
A full-doc lender using one completed year may offer broader products than an alt-doc loan. If the year is not finalised, alt-doc may use approved alternative evidence but can involve higher rates, fees or lower LVR. Compare waiting, one-year full-doc and alt-doc pathways by approval amount and total cost. Do not choose alt-doc merely to avoid providing available information. The evidence and declared income must still reflect the business honestly.
Questions to ask before you proceed
- Which financial years and income method will this lender use for my structure?
- How will add-backs, retained profit, tax debt and business facilities be treated?
- Which current documents will support changes since the last completed financial year?
Key takeaway
One year can be enough with the right lender, but the result must be complete, credible and supported by current trading.
Official guidance: CommBank: Home loans for self-employed borrowers
This is general information, not personal financial, tax or legal advice. Lending criteria, fees and eligibility vary.
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