Lenders That Support Growing Businesses: A Mortgage Broker Northern Beaches Guide

Introduction

When it comes to securing a home loan, growing businesses often face unique challenges. One major hurdle is how traditional lenders calculate borrowing capacity—typically by averaging the last two years of tax returns. While this method may seem fair, it often penalizes businesses that are experiencing rapid growth.

Fortunately, a number of progressive lenders now take a more flexible approach by assessing only the most recent tax return. This strategy can significantly boost the borrowing power of expanding businesses. If you're a business owner on the Northern Beaches, working with a qualified mortgage broker can help you navigate these options and secure a loan that aligns with your growth trajectory.

Understanding the Traditional Lending Disadvantage

Why Traditional Lenders Average Two Tax Returns

Most major lenders use a conservative risk assessment model that averages a business’s last two tax returns. This approach is designed to mitigate risk by smoothing out income fluctuations over time. However, it fails to account for upward trends in revenue and profitability, which are common among growing businesses.

The Problem for Growing Businesses

For business owners whose profits have increased significantly in the most recent year, the average of two years can dilute their real financial standing. It can result in a lower borrowing capacity, which may delay property investment plans or limit purchasing options.

Impact on Borrowing Capacity and Investment Timing

This conservative method can be particularly frustrating when timing is everything. Whether you're looking to buy property in the next financial year or refinance an existing loan, being assessed on outdated financial data can be a major setback. It’s a disadvantage that growing businesses shouldn’t have to accept.

What Makes These Lenders Different?

Most Recent Tax Return in Isolation: The Advantage

The lenders listed later in this article adopt a forward-looking approach. Instead of averaging income, they allow applicants to use only their most recent tax return when applying for a mortgage. This is a game-changer for businesses experiencing rapid revenue growth, as it better reflects their current financial capacity.

Ideal for Fast-Growing Businesses

These lenders are ideal for entrepreneurs, freelancers, and small businesses that are scaling fast. Whether you’ve hired more staff, expanded operations, or landed larger contracts, your latest financials should be recognized—and now they can be.

Importance of Strategic Tax Planning

Timing is everything. With tax season on the horizon, now is the time to involve both your accountant and a knowledgeable mortgage broker Northern Beaches. Strategic collaboration ensures your tax return is optimized not just for tax purposes, but also to enhance your borrowing power.

✅ List of Lenders That Don’t Penalise Growth

Here is a carefully curated list of lenders that support growing businesses by using only the most recent tax return to assess borrowing capacity. This approach empowers business owners who are scaling quickly and need a lending partner that understands their trajectory.

AFG Home Loans Retro

AFG Home Loans Retro offers flexible lending criteria that benefit self-employed individuals and business owners. They understand the unique needs of rapidly expanding enterprises and offer solutions that align with growth.

AFG Home Loans Brighten

Brighten, a division of AFG Home Loans, focuses on modern lending practices. By accepting only the most recent tax return, Brighten provides an opportunity for business owners to leverage their latest financial performance.

ANZ

ANZ is one of the few major banks willing to evaluate applications using the most recent tax return. This makes them a viable option for business owners who have demonstrated recent growth and need a major lender’s backing.

AMP

AMP is known for its flexibility in underwriting criteria. Business owners can benefit from AMP’s forward-looking approach, especially if their most recent year has seen a significant increase in income.

Bankwest

Bankwest supports progressive lending practices that can help growing businesses move forward with their property plans. Their application assessments often allow for the use of recent financials.

Commonwealth Bank (with caveats)

Commonwealth Bank can be a good option for business owners, but there is a caveat. You must use the same bank account for both business trading and personal activity. Otherwise, there is a risk of the account being blackmarked, which could negatively impact your application.

MA Money

MA Money is a lender that understands the self-employed segment. Their loan products cater to businesses in growth mode, offering flexible documentation requirements and the ability to use current financial data.

Macquarie Group (industry dependent)

Macquarie Group offers tailored lending solutions based on industry type. While they are supportive of growing businesses, approval may depend on the nature of your industry and how it aligns with their risk models.

MyState Bank (plus 6 months BAS)

MyState Bank supports growing businesses but does require an additional six months of Business Activity Statements. This helps verify income consistency and gives added reassurance without the need for averaging two tax years.

NAB

NAB provides flexible lending policies for business owners, including those with strong current-year performance. If your recent tax return reflects your true earning power, NAB may be a strong choice.

RedZed

RedZed specializes in lending to self-employed and non-conforming borrowers. They are highly attuned to the needs of businesses in transition and growth, and are open to using current financials.

WLTH

WLTH is a tech-driven lender focused on transparency and speed. Their process allows for assessment based on the most recent tax return, making them ideal for entrepreneurs and fast-moving businesses.

Commonwealth Bank: Proceed With Caution

While Commonwealth Bank does offer the option to assess borrowers based on their most recent tax return, it’s essential to tread carefully. The main caveat is the requirement to use the same account for both trading and daily business operations. If you open an account for the sake of applying and don’t trade from it, the bank may flag your account or restrict lending opportunities. For this reason, it’s important to consult with your accountant and mortgage broker before choosing this path.

Why Timing Tax Returns Matters

Tax time is not just about compliance. For growing businesses, it's a strategic milestone that can directly impact your ability to secure property financing. When your income is increasing year over year, it’s in your best interest to finalize and lodge your tax return early. This allows lenders to evaluate your most recent financial performance, rather than relying on older data that may no longer reflect your true earning potential.

Working with both your accountant and a mortgage broker ensures that your tax return positions you optimally for lending. Decisions about when to claim deductions or how to structure income can influence how much you can borrow. Your mortgage broker Northern Beaches will understand lender preferences and can guide your accountant on what lenders are looking for in strong applications.

The Role of a Mortgage Broker Northern Beaches

A mortgage broker based on the Northern Beaches brings local market knowledge combined with access to a broad panel of lenders. They specialize in matching clients with lenders whose policies align with current business dynamics. For fast-growing businesses, a broker becomes essential in identifying which banks or non-bank lenders will assess your situation based on your latest tax return.

These brokers also act as a liaison between you and your accountant during tax time. They can help ensure your tax documents are presented in a way that aligns with lender criteria. More importantly, they know the nuances of each lender’s policies, saving you time, avoiding rejections, and potentially increasing your borrowing power.

Real-World Scenarios

Case Study: A Business With Year-on-Year Growth

Consider a local business owner on the Northern Beaches who saw a 40 percent revenue increase in the latest financial year. Under traditional lending criteria, their borrowing power would be assessed by averaging the past two years, which would significantly understate their income. However, using a lender that focuses solely on the most recent tax return allowed them to qualify for a higher loan amount and secure their desired investment property.

Example: Boosting Borrowing Power With One Tax Return

A self-employed consultant experienced steady income growth but had a weaker previous year due to industry downturns. Thanks to a lender who used only the latest tax return, the consultant was able to qualify for a home loan with better rates and terms. This highlights the importance of lender selection and timing.

How to Prepare Before Applying

Financial Documentation Checklist

To strengthen your mortgage application, be ready to provide:

• The most recent tax return (preferably lodged and assessed)

• 6 months of Business Activity Statements (BAS) if required

• Business bank statements

• Profit and loss statements

• Identification and credit history

• 
  

Business Activity Statements (BAS) Importance

Some lenders, like MyState Bank, require six months of BAS to validate income consistency. Even if it’s not a requirement, having accurate and up-to-date BAS documentation can improve your credibility with lenders.

Improving Your Application’s Strength

Ensure your accounting is accurate and current. Clear debt where possible and consider pre-approval to know exactly how much you can borrow. Your mortgage broker Northern Beaches can assist in preparing all necessary documents and ensuring you’re aligned with the right lender.

Benefits of Using a Specialist Broker

Access to Non-Bank and Alt-Lenders

Traditional banks aren't the only game in town. A specialist mortgage broker gives you access to non-bank and alternative lenders who are often more flexible, especially for self-employed clients and growing businesses.

Lender Policies That Support Business Expansion

Every lender has different policies. Your broker knows which lenders will consider the latest financials, waive outdated averaging requirements, or tailor solutions for specific industries. This expertise can be the difference between approval and rejection.

Final Tips Before You Hit the Market

Tax Time Alignment

Align your tax lodgement with your home loan goals. If you’re planning to enter the property market in the new financial year, ensure your most recent tax return is ready and represents your best financial picture.

Broker Consult Before Lodging Tax Return

A quick consultation with your mortgage broker before lodging your tax return can help ensure your financials are structured to enhance borrowing power. This is particularly important if you plan to borrow within the next 6 to 12 months.

Long-Term Planning for Property Purchase

Strategic planning now can save you months of delays later. Use the tools and professionals at your disposal—especially a local broker who knows lender policies inside and out.

Conclusion

Growing businesses should not be penalized by outdated lending criteria. With the right lender and the right guidance, you can secure a home loan that reflects your current success—not your past limitations. A mortgage broker Northern Beaches has the expertise and connections to help you leverage your most recent financials and make smarter property decisions. As tax season approaches, there’s no better time to prepare, plan, and partner with professionals who understand your goals.

Frequently Asked Questions

1. What documents do I need as a growing business for a mortgage? You typically need your most recent tax return, BAS statements, business bank statements, and identification. Some lenders may also request profit and loss reports.

2. How can a mortgage broker help with lender selection? A mortgage broker Northern Beaches can match your financial profile with lenders who support growing businesses by using only your latest tax return for assessment.

3. Is using the most recent tax return common among lenders? It's becoming more common but is still limited to a select group of lenders. A mortgage broker can help identify these options.

4. Can I refinance with these supportive lenders? Yes, many of these lenders offer refinancing options, especially if your recent financials are stronger than in previous years.

5. When is the best time to talk to a mortgage broker? Ideally, before finalizing your tax return. This allows your broker and accountant to collaborate and optimize your documentation for lending purposes.