Can You Get a Home Loan With 1 Year ABN in Australia?
Learn how self-employed borrowers may qualify for a home loan with only 1 year ABN history, what lenders look for, and how to improve approval chances.
Jun 9, 2026
Self-Employed Home Loans in Australia: How to
Improve Your Chances of Approval
Getting a home loan when you’re self-employed can feel unnecessarily complicated.
One lender asks for two years of tax returns. Another reduces your borrowing capacity because of
business expenses. Meanwhile, your income may look lower on paper simply because your accountant
has structured your finances efficiently.
But here’s the reality:
Self-employed borrowers get approved every day.
The difference usually comes down to:
choosing the right lender
structuring the application properly
understanding how banks assess self-employed income
What Is a Self-Employed Home Loan?
A self-employed home loan is simply a mortgage for borrowers who earn income through:
a business
ABN contracting
a company
freelance work
trusts or partnerships
Unlike PAYG employees, self-employed borrowers usually need to provide additional financial evidence
so lenders can assess income consistency and business stability.
Who Is Considered Self-Employed?
Most lenders consider you self-employed if you:
own a business
operate under an ABN
earn contractor income
own a company
receive trust distributions
operate as a sole trader
In many cases, lenders prefer:
1-2 years trading history
lodged tax returns
business financials
However, some lenders now offer more flexible options for borrowers with:
12 months ABN history
strong business cash flow
alternative income verification
Why Self-Employed Borrowers Often Struggle With
Banks
The biggest issue isn’t always income.
It’s how the income is presented.
Many business owners reduce taxable income through:
depreciation
business expenses
asset write-offs
company structures
That may help reduce tax - but it can also reduce borrowing capacity if the lender doesn’t assess the
application correctly.
This is why lender policy matters so much.
Some lenders are far more flexible with:
company profits
retained earnings
contractor income
one-year financials
trust structures
BAS-only applications
What Documents Do You Need for a Self-Employed
Home Loan?
Requirements vary depending on the lender.
Full-Doc Home Loans
Most standard lenders require:
personal tax returns
business tax returns
notices of assessment
BAS statements
business financials
bank statements
Low-Doc Home Loans
Some lenders offer low-doc solutions using:
BAS statements
accountant declarations
business bank statements
alternative income verification
Low-doc loans can suit borrowers who:
recently became self-employed
haven’t lodged full financials yet
minimise taxable income
operate seasonal businesses
Can You Get a Home Loan With Only 1 Year ABN?
Yes - in some scenarios.
While many major banks still prefer two years self-employed history, some lenders will accept:
12 months ABN history
previous industry experience
strong business performance
stable income trends
This can benefit:
tradies
consultants
medical professionals
IT contractors
freelancers
business owners transitioning from PAYG employment
Common Challenges for Self-Employed Borrowers
Inconsistent Income
Business income can fluctuate year to year.
Some lenders become cautious if income drops, even temporarily.
Complex Business Structures
Trusts, companies, partnerships, and multiple entities can complicate borrowing assessments.
Not all lenders handle these structures well.
Tax Debt
Outstanding tax liabilities may affect lender confidence and borrowing capacity.
Multiple Credit Enquiries
Applying with several lenders can damage your credit profile unnecessarily.
That’s why choosing the right lender upfront matters.
How to Improve Your Chances of Approval
Keep Financial Records Up To Date
Lenders want clean and consistent documentation.
This includes:
lodged tax returns
BAS submissions
business bank statements
financial statements
Maintain Good Account Conduct
Overdrawn accounts, dishonours, and missed repayments can create concerns.
Strong banking conduct helps strengthen applications.
Reduce Personal Debts
Credit cards, car loans, and personal liabilities can reduce borrowing power quickly.
Even unused credit limits matter.
Work With a Broker Experienced in Self-Employed Lending
Different lenders assess self-employed borrowers very differently.
An experienced broker can help:
identify suitable lenders
structure income correctly
maximise borrowing capacity
avoid unnecessary declines
This becomes especially important for:
complex income structures
contractors
multiple businesses
trust arrangements
low-doc scenarios
Low-Doc Home Loans Explained
Low-doc home loans provide alternative pathways for borrowers who may not meet standard
documentation requirements.
Depending on the lender, these loans may use:
BAS statements
accountant letters
bank statement verification
Low-doc loans can sometimes involve:
larger deposits
slightly higher interest rates
lower maximum loan amounts
However, they remain a valuable option for many business owners and self-employed Australians.
Why Choosing the Right Lender Matters
Not every lender views self-employed borrowers the same way.
Some lenders are more flexible with:
self-employed income
contractor income
company structures
trusts
variable income
complex applications
Choosing the wrong lender can lead to:
reduced borrowing power
unnecessary credit enquiries
avoidable declines
The right lender can make a substantial difference.
Final Thoughts
If you've previously been declined by a bank, specialist lenders may still consider your application
depending on your situation.
Read our guide:
Declined by the Bank? Home Loan Options for Self-Employed Australians
Being self-employed doesn’t mean your home loan options are limited.
With the right strategy, lender selection, and application structure, many self-employed Australians can
still secure competitive lending solutions.
At Smart Lending Group, we help borrowers navigate:
self-employed home loans
low-doc lending
refinancing
complex borrowing scenarios
alternative lending solutions
with tailored support and clear guidance throughout the process.
Need Help With a Self-Employed Home Loan?
Whether you’re:
a sole trader
contractor
business owner
company director
freelancer
Smart Lending Group can help you explore lending options tailored to your situation.