You work for yourself. You juggle clients, invoices, and deadlines, so why should the lending process for a home loan feel like climbing Everest?
Good news: the self-employed lending market just got a major upgrade. Big banks, think Westpac, NAB, Commonwealth Bank, and others, are finally loosening the ropes, making it easier for self-employed people, including freelancers and contractors, to get through the door.
Let’s break down what’s changed, and how you can use it to your advantage.
From mid-2025, several major banks have made a big move: self-employed applicants can now often show just one year of personal tax returns and a Notice of Assessment, instead of two. That means no more digging up old financials, just your latest good year is enough for income assessment.
You’ll see faster application assessments, with more lending to self-employed people year-on-year. There’s less paperwork, so you can focus on your business performance, not admin. And your most recent year counts for more, which is great if your self-employed income is growing.
There are now over two million self-employed Australians, according to the Australian Bureau of Statistics, and that number is climbing fast, along with labour income, which hit $29.5 billion in March 2025.
Not every bank is relaxing all their rules. Some, like NAB and Commonwealth Bank, are tightening up on serviceability, especially for self-employed applicants. It’s all about responsible lending, so if your debt-to-income ratio is high, you’ll need to be strategic about your borrowing capacity.
That said, many banks remain competitive, especially for certain self-employed professionals. Lending strategies are adapting to market conditions, including expected rate cuts later in 2025.
You’re not alone. Over two million Aussies work for themselves, and more than five million are freelancers, gig workers, or contractors. If that sounds like you, you’re part of a booming group that banks can’t afford to ignore.
If you’ve been self-employed for at least two years, you can now use just your latest year’s personal tax return and Notice of Assessment with many lenders. No more hunting down two years of paperwork.
A shorter application process means you can get pre-approval faster and be better positioned in a competitive market.
Using your latest tax year puts your recent self-employed income front and centre, perfect if your business is on the up.
If your income is complex or your debt-to-income ratio is high, you’ll need a solid strategy to maximise your borrowing capacity. We can help crunch the numbers and position your application for success.
Even with easier routes, have your bank statements, profit & loss, and accountant notes ready. Some lenders may also ask for Business Activity Statements or details about business liabilities, especially if you’re applying for low-doc loans or Alt Doc options.
Gather your latest personal tax return, Notice of Assessment, and bank statements. If you’re eyeing a lender with a 1-year pathway, get ready.
Let’s check your debt ratios, cash flow, and serviceability, not just your income. With some banks tightening up, careful planning pays off.
Some banks are simplifying things, but others might offer better terms if your business structure fits. We’ll weigh both options based on your situation.
Use your latest year to show your growth, highlight key trends, contracts, and stability.
Let’s package your application and submit it confidently, knowing exactly what each bank is looking for.
You’re part of a growth wave. Self-employed people are a financial force, and banks are finally recognising it.
Less red tape means more time for your business. Why waste it on paperwork?
This isn’t just a token change. The shift in lending policies shows that banks are adjusting to you.
You deserve better. With the right setup, your self-employed income is just as strong as any salaried worker’s.
This shift isn’t just theory, it’s your tactical advantage. Let’s get your loan application polished and positioned for success.
Send through your recent financials and income, and we’ll show you the best route, whether it’s a 1-year path or a structure-first strategy. As your mortgage broker, we’ll help you navigate the lending process and maximise your borrowing power.
You run your business. We’ll run the finance.