Your Northern Beaches Guide to Self-Employed Mortgages

As a self-employed professional on the Northern Beaches, you know that your financial life is anything but standard. Your income might fluctuate, your tax returns may not reflect your true earning power, and your time is best spent running your business, not compiling endless paperwork. This is where navigating the world of mortgages can get tricky.

The good news? A growing number of lenders understand the unique financial situations of self-employed Australians and offer flexible lending options. Here are some of the most common questions we hear, with answers straight from the lenders' policies.

Q1: What documentation do I need for a self-employed mortgage?

The documentation required depends on the type of loan and the lender's policy. While traditional banks may require two years of lodged tax returns, many alternative lenders offer "Alt Doc" or "Low Doc" loans that accept other forms of verification.

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  Tax Returns: Some lenders, like NAB, now offer a one-year tax return policy for loans with an LVR of 80% or under.

  
  

• Business Activity Statements (BAS): A number of lenders accept recent BAS statements. For example, MA Money requires the last two BAS statements , while Brighten and RedZed require six months of BAS statements for their Alt Doc products.

  
  
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  Bank Statements: Some lenders, such as RedZed and Brighten, will accept business bank statements in lieu of tax returns or BAS statements.

  
  
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  Accountant's Letter: An accountant's declaration confirming your financial position is a common verification method for many Alt Doc products.

  
  

Q2: I don't have recent tax returns. Can I still get a home loan?

Yes, absolutely. The absence of recent tax returns is a common scenario for self-employed individuals, which is precisely why many lenders offer flexible solutions. Lenders who specialize in this space, such as Pepper Money and MA Money, accept alternative documentation like BAS statements, business bank statements, or a letter from your accountant to verify your income.

Q3: What if I have a bad credit history or past defaults?

A less-than-perfect credit history does not automatically disqualify you. Many specialist lenders have a higher risk appetite and can assess these scenarios on a case-by-case basis.

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  Prime Capital helps "credit impaired borrowers" and has "no minimum credit score". They are willing to look at "defaults and ATO debts and anything a normal bank would typically say no to".

  
  
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  Pepper Money's "EASY" product accepts an unlimited number of defaults, judgments, and writs up to $3,000 (paid or unpaid). It even accepts applications from individuals who were discharged from bankruptcy just one day ago.

  
  
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  RESIMAC's "Assist" product is specifically designed for borrowers with unlimited mortgage arrears and credit events, and can consider applicants who are currently in bankruptcy (entered less than two years ago).

  
  
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  MA Money offers a "Specialist" product that accepts "Unlimited (paid or unpaid)" credit impairments and a bankruptcy discharge timeframe of " > 1 day".

  
  

Q4: Can I use director wages for my loan application?

Yes. Lenders increasingly recognize that directors' wages represent a reliable income source. NAB and ANZ both have specific policies that allow them to assess income based on a consistent wage, sometimes without needing to review the business's full financials or addbacks. RedZed also accepts director wages, verified by bank statements or ATO income statements, for their Alt Doc products.

Q5: Do I need to be registered for GST?

The requirement for GST registration often depends on your business's turnover. If your business's annual turnover is below $75,000, some lenders, like Brighten, may still consider your application. In such cases, you can provide business bank statements to support your declared income.

Q6: I need to cash out equity for my business. Is this possible?

Yes. This is a common loan purpose for self-employed professionals. Prime Capital offers "unlimited cash out as long as it's for business purpose". Similarly, Pepper Money offers unlimited cash out for business purposes across many of its products.

Q7: Are there any types of businesses or properties that lenders won't finance?

Lenders are primarily concerned with the legality and financial viability of the business and the property's use. While most legitimate businesses are acceptable, some types are explicitly excluded. For example,

Pepper Money lists "Brothels" as an "Unacceptable Securities" type. Other excluded properties include contaminated sites, retirement villages, and properties with restrictive zoning.

Q8: What's the maximum acreage for vacant land that lenders will accept?

The maximum size for vacant land varies significantly by lender and location. For example, Pepper Money has a limit of

5 acres for vacant residential land , while MA Money and Mortgage Ezy accept up to

25 acres. For larger rural residential properties that are not income-producing, ANZ has a limit of

50 hectares (approximately 123.55 acres) , but an application for a property over that size may still be considered with strong justification.

If you're a self-employed professional on the Northern Beaches and these options sound promising, a local mortgage broker can help you navigate these specific lender policies to find the right solution for you.