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Home Self-employed home loans Guide

Can I get a home loan with a 1-year ABN?

Last reviewed by Nabita

Short answer

Yes, with some lenders. Some lenders will consider self-employed applicants with around 12 months of ABN history, usually with at least one year's tax return or BAS, and some also count time you spent in the same line of work before going self-employed. Many lenders still want two years of tax returns, so choosing the right lender matters.

What do lenders look at?

Lenders must make reasonable inquiries about your financial situation and take reasonable steps to verify it. With a young business, they're trying to judge whether your income is stable. Most look at:

  • How long your ABN has been active, and whether you've been registered for GST where you need to be
  • Your income records: your latest tax return and notice of assessment, or BAS and business bank statements
  • Your work history: some lenders count time in the same line of work before you went self-employed
  • Your deposit, savings and existing debts, as for any borrower

Policies differ a lot between lenders. Some consider around 12 months of ABN history; many still want two years of tax returns for a standard loan.

Documents for a 1-year ABN

Each lender has its own list, but it helps to have these ready:

  • your ABN details, and your GST registration if you have one
  • your most recent tax return and notice of assessment, if you've lodged them
  • BAS for the last 12 months, if you're registered for GST
  • business bank statements
  • an accountant's letter or declaration, which some alt doc loans ask for
  • evidence of earlier work in the same field, such as payslips or an employment letter
  • your ID, personal bank statements and details of any debts

Full doc or low doc?

If you've lodged a tax return for your first year and it shows enough income, a full doc loan may be possible with a lender that accepts 12 months. If your return isn't lodged yet, some lenders offer alt doc or low doc loans that use BAS, business bank statements or an accountant's declaration instead.

Moneysmart notes that low doc loans usually have higher interest rates, and some have terms that limit the borrower. It's worth checking whether you can get your tax return lodged first and apply for a standard loan.

Moving from employee to self-employed in the same work

Many people go out on their own in the work they already do, for example an employed electrician who starts contracting, or a nurse who moves to agency work on an ABN. Some lenders look at your total time in that line of work, not just your time on an ABN. If that's you, keep your old payslips or an employment letter: they help show your income has been steady.

How to check your ABN date

Search your ABN or business name on ABN Lookup. It shows the date your ABN became active, which is the date lenders will see.

Steps to take

  1. Check your ABN start date and work out your months of trading.
  2. Lodge your latest tax return as early as you can, with your accountant.
  3. Gather the documents above, including proof of earlier work in the same field.
  4. Talk to us about which lenders accept your situation, and whether full doc or low doc suits you.
  5. Apply for pre-approval with the right lender before you start making offers.

How MoneyGenie helps

  • Matches you with lenders on our panel that consider a 12-month ABN, based on the records you already have.
  • Checks whether your earlier work in the same industry can count, and how to show it.
  • Compares full doc and low doc options with you, including the higher cost of low doc loans.

Nabita compares options from MoneyGenie's panel of 35+ lenders, tells you upfront which are realistic for your situation, and handles the application with you through to settlement. Our service is generally at no cost to you, as we're paid a commission by the lender, which we disclose to you upfront. Details are in our Credit Guide, available on request. Talk to Nabita: call 040 110 1608 or send an enquiry.

Call 040 110 1608 Send an enquiry

Last reviewed by Nabita, mortgage broker, MoneyGenie Finance.

Official sources

Frequently asked questions

How long do I need to be self-employed to get a home loan?

It depends on the lender. Some consider around 12 months of ABN history, usually with at least one year's tax return or BAS. Many want two years of tax returns for a standard loan.

Can I use my BAS instead of tax returns?

Some lenders accept BAS and business bank statements for alt doc or low doc loans. Moneysmart notes low doc loans usually have higher interest rates than standard loans.

I did the same job as an employee before. Does that help?

It can. Some lenders count the time you spent in the same line of work before you went self-employed, together with your ABN history. You'll need to show it, for example with your previous payslips or an employment letter.

Does my ABN need to be registered for GST?

Only if your GST turnover is $75,000 or more, which is when the ATO requires you to register. Where you are registered, lenders may check it.

The rules and figures in this guide were checked against the official sources above on the review date. Government rules and lender policies change, so check your own situation with us or the relevant authority before acting.