When this client — a sole trader running his own electrical business in Adelaide's southern suburbs — first approached a major bank, he was turned away within days. His income was real, his business was profitable, and he had a solid deposit. But the bank's automated assessment could not reconcile his business income with their standard PAYG criteria.
He tried a second major bank with the same result. By the time he came to Lendology, he had two declined applications on his credit file and was starting to believe home ownership was not possible as a self-employed person. It is a situation we see regularly — and one that is almost always solvable with the right lender and the right application.
The first thing Lendology did was review his tax returns and financial statements in detail. His accountant had legitimately minimised his taxable income — which is exactly what a good accountant should do — but this made his declared income look lower than his actual cash position.
We identified two things: first, that certain add-backs were available under lender policy that would increase the assessable income significantly; second, that a specialist non-bank lender with a more sophisticated approach to self-employed income assessment would be a much better fit than either of the majors.
Not all lenders assess self-employed income the same way. Some lenders allow add-backs for depreciation, one-off expenses and other items that reduce taxable income but do not represent actual cash outflows. The right lender for this client was one that understood his business, not one that just looked at his tax return.
Lendology prepared a comprehensive loan application that clearly documented the business income, the add-backs, the two years of consistent profitability, and the client's strong savings history. We also worked with his accountant to ensure the most recent financials were prepared and lodged before submission.
The application was approved within six weeks of Lendology's first conversation with the client. The approval was for the full amount required, at a competitive rate, with a major non-bank lender that specialises in self-employed borrowers.
The client settled on his first home three months later. Two major banks had told him it was not possible. The right broker, the right lender, and the right application structure made it possible.
I had given up after the second decline. Jason sat down with me, went through my financials properly, and within six weeks I had an approval for the full amount. I wish I had come to Lendology first.
Yes. Self-employed borrowers can access the same loan products as PAYG employees — they just need to provide different documentation and use a lender whose assessment criteria suits their income structure. Lendology specialises in self-employed lending and knows which lenders are most accommodating.
Major banks often use automated assessment systems that struggle with variable or complex income. A profitable self-employed business with legitimate tax minimisation can look unserviceable to an algorithm. Specialist lenders and experienced brokers understand how to present self-employed income correctly.
Typically two years of personal and business tax returns, notices of assessment, business financial statements prepared by an accountant, and current BAS statements. Some lenders offer low-doc options for borrowers who cannot provide full documentation.
Add-backs are expenses that reduce your taxable income but do not represent real cash outflows — such as depreciation, one-off expenses, and certain business costs. Some lenders allow these to be added back to your assessable income, increasing your borrowing capacity significantly.
Book a free chat with Jason or Steve. We will assess your situation honestly and tell you exactly what is possible.