What to Do When You Only Have One Year of Accounts
TL;DR
Most main banks want two full years of financial statements before they'll lend to a self-employed borrower, so with only one year you'll find the mainstream door is often closed, or only open a crack. But one year is not a dead end. Some lenders will consider a single year of accounts, particularly with a strong result, an accountant's support, and evidence the business is stable. Beyond that, tier-two and non-bank lenders specifically assess self-employed borrowers on GST returns, business bank statements, or an accountant's declaration rather than two years of tax returns. The path exists. It just isn't the standard one.
You've been in business a year, it's gone well, and you want to buy a home. Then you hit the wall: the bank wants two years of accounts, and you've got one.
It's one of the most common frustrations for newer self-employed borrowers, and it stops a lot of capable people who assume one year means they simply can't buy.
They usually can. It's just not the standard path, and it helps to understand why the wall exists and how to get around it.
Why Lenders Want Two Years
The two-year requirement isn't arbitrary. Lenders want evidence of stability.
One good year could be luck: a single big contract, a one-off project, a favourable market moment that won't repeat. Two years starts to show a pattern, that last year wasn't a fluke and you can consistently earn enough to service a mortgage. From the lender's point of view, they're trying to confirm the income is durable, not a spike.
That's the logic behind most main banks (ANZ, ASB, BNZ, Westpac, Kiwibank) defaulting to two full years of finalised financials. With only one, you're outside their standard policy, and their standard answer is often no, or a more cautious yes with extra conditions.
One Year Is Not Automatically a No
Here's what gets missed: "two years is the default" is not the same as "one year is impossible."
Some lenders will consider a single year of accounts in the right circumstances. What makes the difference:
A strong result. A genuinely healthy first-year profit is far more persuasive than a marginal one.
A stable, established business. If you were doing similar work before (as an employee in the same field, or as a contractor) that continuity helps show the income isn't coming out of nowhere.
Accountant support. An accountant confirming the business is sound and the result is sustainable carries real weight.
A clean overall picture. Good deposit, low other debt, clean credit, and strong serviceability all make a lender more comfortable stretching on the accounts.
The stronger the rest of your position, the more willing a lender is to accept the shorter track record.
The Non-Bank and Tier-Two Route
If the main banks won't move on one year, this is where the real flexibility lives.
New Zealand has a solid set of tier-two and non-bank lenders that specialise in self-employed borrowers who don't fit the two-year mould. Rather than demanding two years of tax returns, they assess income using alternatives:
GST returns
Business bank statements showing consistent cash flow
An accountant's declaration or certificate confirming income
These are sometimes called low-doc or alternative-documentation loans. They're built for exactly your situation: a real, earning business without the standard paperwork history.
The trade-off is usually a higher interest rate, because you're paying for the flexibility. But used sensibly, a non-bank loan can get you into a home now, with a view to refinancing to a mainstream bank later, once you've got that second year of accounts behind you and can access sharper rates.
That refinance plan matters. The non-bank loan isn't necessarily forever. It's often a bridge across the two-year gap.
What to Do Right Now
If you're sitting on one year of accounts and wanting to buy:
Make that one year as strong as it can legitimately be. Talk to your accountant. The way the result is presented matters, and the tension between minimising tax and showing income is real here.
Get your wider position in order. Deposit, other debt, credit conduct, and account conduct all count more when the accounts are thin.
Don't assume the main banks are the only option. The non-bank market exists precisely for this.
Think about timing. If you're close to having a second year finalised and your situation isn't urgent, waiting a few months could open up mainstream lending and better rates. Sometimes the smartest move is a short wait; sometimes it's a non-bank loan now with a refinance later. It depends on your numbers and how urgent the purchase is.
Where This Leaves You
One year of accounts narrows your options. It does not close them. Some mainstream lenders will consider a strong single year with the right support, and the non-bank market is built specifically for borrowers who don't yet have the standard two-year history.
The question isn't "can I buy with one year." It's "which path fits, a main bank willing to stretch, or a non-bank loan now with a refinance later." That's a numbers-and-timing decision, and it usually has a workable answer.
Placing a one-year-of-accounts application takes knowing which mainstream lenders will consider it and which non-bank lenders are built for it, plus a clear plan for refinancing to sharper rates once your second year lands. That's specialist territory.
At Crisp we work with self-employed buyers who don't fit the two-year mould, matching them to the right lender now and mapping the path to a mainstream refinance later. A short track record shouldn't keep you renting.
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About the Author:
Joshua Flack is a mortgage and lending adviser and the founder of Crisp Financial. Before finance, he spent two decades running businesses across construction, facilities services, and franchising, which is why his advice starts with how the numbers actually work rather than how the brochure says they should. He works with home buyers, investors, and self-employed borrowers across New Zealand, with particular depth in complex and non-standard lending. Crisp Financial Limited (FSP1012114) operates under the Link Financial Group FAP licence. The information in this article is general in nature and is not regulated financial advice.
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