Home loans for self-employed clients

Fast Track assessment

If your client is eligible for Fast Track assessment, they can expect:

• Assessment without the need to provide business financials
• Same experience and turnaround as employees on a salary.

Fast Track applies even if your client has a: 

• PAYG income
• Rental income
• Joint application, and one or both of the applicants are self-employed. 

Fast Track eligibility criteria for self-employed clients:

• Provide personal ATO NOAs for the last 2 years, with capital gains deducted from taxable income 
• At least 80% LVR, meaning LMI doesn't apply (Medico clients may qualify for an LMI waiver for up to 95% LVR – see FAQ below) 
• Extra income is not required to meet serviceability as covered using the income from their 2 personal ATO NOAs  
• Foreign income is not included in their ATO NOAs

Receive a salary from their business, from a partnership or trust, or dividends from their company. 

Standard assessment

If your client doesn't qualify for Fast Track, a standard assessment may enable them to:

• Include additional income from their business, such as business profits and add-backs 
• Be assessed on the business's most recent year performance.
   

Potential for more borrowing power if your client's business: 

• Shows year-on-year profit growth of 60% or less, we may be able to use the most recent year's income in the serviceability assessment to offer more borrowing power 
• Assessed on unadjusted profit (i.e. based on profit figures in financials/tax returns), providing certainty even before starting the assessment that we'll use latest year income. 
• Needs to pay LMI on their loan 
• Has been operating as a viable business for the last 2 years (see the 'standard assessment, standard serviceability' scenario documentation below).  

Standard assessment and standard serviceability

If your client doesn't qualify for Fast Track, you'll need to provide:

• Last 2 years of personal ATO Notice of Assessments

Plus, the following extra documentation to show they’ve been operating as a viable business for the last 2 years:

Sole traders: the last 2 years of Personal Income Tax Returns.

Business partnerships, companies and trusts: the last 2 years of 

• Personal Income Tax Returns  
• Partnership, Company or Trust Tax Returns  
• Financial statements, including profit and loss accounts, and balance sheets.  

It’s a good idea to have the following documents ready, to support:

• Tax-deductible expenses like interest, rental property and one-off expenses, depreciation, asset write-offs, company car deductions and family trust distributions
• Business liabilities like hire purchases, leases, and term loans. 

Medico assessment

Medico clients that qualify for Fast Track assessment, borrowing up to 95% LVR with no LMI and no minimum income, are: 

• Dentists  
• General Practitioners 
• Hospital-employed Doctors (Intern, Resident, Registrar, Staff Specialist)  
• Medical Specialists  

Medico clients, on a standard assessment, borrowing up to 90% LVR with no LMI and earnings of at least $90k/year from their occupation are:  

• Audiologists 
• Chiropractors 
• Midwives 
• Occupational Therapists 
• Osteopaths 
• Physiotherapists 
• Podiatrists 
• Psychologists 
• Radiographers 
• Registered Nurses 
• Sonographers 
• Speech Pathologists  
• Optometrists 
• Pharmacists 
• Veterinary Practitioners