Mortgage Broker Northern Beaches: Why Company Structures Are the Kings of Lending

When it comes to lending, there’s one truth I’ll stand by: company structures are the undisputed kings of borrowing capacity—and you can’t change my mind.

If you’re self-employed and living (or investing) on the Northern Beaches, chances are you’ve wondered how your business setup affects your ability to get a mortgage. Well, let me break it down for you—without the jargon and with a few hacks that might just make you the smartest one at your next family barbecue.

Why Company Structures Dominate Lending

Let’s start with the basics. When you’re a sole trader, lender policies are pretty straightforward—but not always in your favour. Your personal income and your business’s debts are often assessed together. In other words, if your business owes money, so do you in the eyes of the bank.

Now flip the script with a company structure. Suddenly, the game changes:

• No wage or dividend required: You don’t need to draw a wage or a dividend for a lender to determine your borrowing capacity.

• Net profit gets the spotlight: Lenders can use your company’s net profit, taxed at just 25%, to work out what you can borrow.

• Director’s wage flexibility: If you do pay yourself a director’s wage, forget about submitting bulky tax returns—sometimes all the bank needs are two payslips and an income statement.

• Company debts? Not your problem (mostly): Lenders can choose to ignore company debts, which is a massive win compared to how they treat sole traders or partnerships.

See what I mean? Company structures don’t just win—they absolutely dominate.

Borrowing Capacity 101: Why This Matters

Imagine you’re looking at buying a property on the Northern Beaches—whether that’s a family home in Dee Why, a beachside apartment in Manly, or an investment property in Narrabeen. Your borrowing capacity is the key that determines what’s in reach and what stays a dream.

Here’s the kicker: self-employed borrowers often undersell themselves because they don’t know how lenders actually view company income.

With the right structure in place, your borrowing power could be significantly higher. And that’s the difference between:

• Snagging that dream home with ocean views…

• Or settling for something further inland you’re not really in love with.

The Northern Beaches Factor

Let’s be real—property prices on the Northern Beaches aren’t exactly small change. With the median house price sitting north of $3 million in suburbs like Manly and Freshwater, maximising every dollar of your borrowing capacity isn’t just smart, it’s essential.

That’s where having a mortgage broker who understands both local property trends and complex lending policies makes a world of difference.

As a Northern Beaches mortgage broker, I don’t just match you with a lender—I help you present your financials in the best possible light, especially if you’re self-employed.

Lender Hacks for Company Directors

Now, because you stuck with me this far, let me share a few more “barbecue brag” hacks you can throw at your uncle when he starts handing out unsolicited financial advice:

1. Payslip over paperwork: If you’re a director paying yourself a wage, some lenders are happy with just payslips and an income statement—saving you from digging up two years of tax returns.

2. Addbacks are your friend: Things like depreciation and one-off expenses can often be added back to your income, boosting your borrowing power.

3. Ignore the noise: Certain lenders will look at your company’s debts and shrug them off—provided the company is comfortably servicing them. That means less impact on your personal borrowing.

4. Timing is everything: If your latest year’s income is stronger than the previous year, lenders can choose to base their assessment on just the most recent figures. That’s a win if your business has been growing.

Sole Trader vs Company: The Real Difference

To keep it simple, here’s a quick comparison:

• Sole Trader:

  • You and the business are one and the same.

  • Business debts are your debts.

  • Lenders rely heavily on your personal tax return.

• Company:

  • Separate legal entity.

  • Net profit is assessed at a flat 25% tax rate.

  • Directors can show income with payslips rather than tax returns.

  • Business debts don’t always hit your personal application.

If we’re keeping score, it’s pretty clear who’s winning.

Why Work With a Mortgage Broker on the Northern Beaches?

Here’s the truth: lender policies around self-employed income are complex. And unless you’re the kind of person who loves reading credit policy manuals for fun (spoiler: it’s not fun), you’re probably not going to know which banks to approach and which to avoid.

That’s where I step in.

As a mortgage broker on the Northern Beaches, I work with over 40 banks and lenders. I know who’s flexible, who’s tough, and who’s got policies that actually work in your favour if you’re running your business through a company.

What that means for you:

• Less paperwork: I’ll point you toward lenders who don’t make you dig up every receipt since 2019.

• Better borrowing power: By structuring your application right, you’ll maximise how much you can borrow.

• Stress-free process: I deal with the banks, so you don’t have to.

• Local knowledge: I understand the Northern Beaches property market, so I can match your borrowing strategy with real property opportunities.

Real Talk: The Lending Game Has Changed

Once upon a time, being self-employed meant hitting a brick wall with the banks. These days, it’s a whole new world—as long as you’ve got the right structure and the right broker guiding you.

Company structures aren’t just a little bit better—they’re a complete game changer when it comes to getting approved for a mortgage, especially in competitive markets like the Northern Beaches.

So next time someone at a barbecue tells you being self-employed is a disadvantage in lending? Hit them with this:

“Actually, with the right company setup, lenders can ignore debts, use net profit at 25% tax, and accept payslips instead of tax returns. Now, pass me the sausages.”

Your Next Step

If you’re self-employed and looking to buy, refinance, or invest on the Northern Beaches, don’t sell yourself short. The right advice could unlock hundreds of thousands more in borrowing capacity.

👉 Book a chat with Mortgage Hub today. We’ll dive into your business structure, show you how to maximise your borrowing power, and find the right lender for your goals.

Because at the end of the day, company structures don’t just win—they dominate. And with the right mortgage broker on your side, so can you.