Self-employed and finding the banks hard work

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Lenders assess business income differently to salary, and they are not consistent about it. Two years of accounts, an averaging rule, and a list of addbacks that varies by lender means the same borrower can look affordable to one and unaffordable to another.

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The frustration is usually not that you cannot afford the loan. It is that the way your income is presented does not reflect what you actually earn.

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What advice covers

• How lenders read business income across companies, trusts, partnerships and sole trader structures

• Which addbacks are accepted and by whom: depreciation, interest, one-off expenses, shareholder salary

• Whether you need two full years of accounts, and what to do if you have one

• How drawing structure and retained earnings affect what a lender will use

• Which lenders suit newer businesses and which will not look at you

• Timing an application around your financial year end

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Tools and downloads

Self-Employed Addback Checklist

Affordability Stress Test calculator

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Related reading

The Mortgage Ready Test: Are You Financially Fit to Invest in 2026?

Multi-Entity Investing: Using Trusts and Companies to Protect Your Assets

DTI Restrictions vs LVR Easing: Which Change Actually Impacts Your Borrowing Power?

Non-Bank Lending in 2026: When It Makes Sense to Pay a Higher Rate

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