Self-employed
How long do I need to be self-employed before getting a home loan?
Many lenders prefer two years of history, but some can consider a shorter established-business period.
Short answer
Two completed financial years gives the broadest range of self-employed home-loan options, but it is not a universal minimum. Some lenders can consider one year of financials or a shorter ABN history when the business is established, income is well supported and the applicant has relevant previous experience. Policy varies widely.
Why trading history matters
A lender uses history to judge whether income is stable and sustainable. New businesses have less evidence, higher failure risk and often uneven cash flow. The assessor considers when the ABN began, GST registration, ownership, industry experience and whether the current business continues an earlier role or enterprise.
- Confirm the exact ABN and entity being assessed.
- Prepare current and historical financial evidence.
- Show relevant experience in the same industry.
- Explain changes in structure, ownership or trading name.
One year does not mean one document
A lender using the latest year may still request prior employment evidence, BAS, bank statements, interim accounts and personal returns. It wants to understand both current income and the path that produced it.
When a shorter history may be stronger
A plumber who worked in the trade for ten years and then bought an established plumbing business presents a different risk from someone starting an unrelated venture with no experience. Continuity of industry, contracts, customer base, qualifications and operating model can help explain sustainability. It does not override a lender's minimum ABN rule. Select a lender whose policy can consider the actual history before lodging an application.
Structure changes can reset the apparent history
Moving from sole trader to company, changing ABNs or adding a trust can make a continuing business look new on paper. Provide the old and new registrations, sale or restructure documents, accountant explanation and financials across both entities. The lender decides whether the history can be treated as continuous. Do not assume a new entity automatically inherits every year of prior trading, even when the customers and work remain the same.
When waiting can be worthwhile
If available loans require a materially higher rate or larger deposit, waiting for final accounts may open better options. Use the time to lodge returns, reduce personal and business debts, keep tax obligations current and build genuine savings. Compare the cost of waiting with the cost and risk of buying now. A short-history approval can be valuable, but it should not depend on an unrealistic assumption that a cheaper refinance will definitely be available later.
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
Two years provides more choice, but a well-evidenced shorter history can work when lender policy matches the business story.
Official guidance: APRA: Residential mortgage lending guidance
This is general information, not personal financial, tax or legal advice. Lending criteria, fees and eligibility vary.
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