What are add-backs and how do they increase borrowing power?

An add-back is a business expense added back to taxable income for loan assessment purposes. Depreciation, vehicle expenses, home office deductions, and one-off costs can be added back. For example, $95,000 taxable income plus $45,000 in add-backs = $140,000 assessed income — which can double borrowing capacity.

Can I borrow with less than 2 years ABN?

Yes. Specialist lenders will consider borrowers with as little as 6–12 months ABN history using bank statements, BAS statements, or an accountant's letter. Your options expand significantly after 2 years, but you are not excluded before that.

Do I need a larger deposit as a self-employed borrower?

Not necessarily. Many self-employed borrowers are approved with a 10% deposit (90% LVR). Specialist lenders regularly lend at 85–90% LVR with LMI. A 20% deposit removes LMI entirely but is not required.

Alt doc (alternative documentation) sits between full doc and low doc. It typically uses a combination of BAS statements, bank statements, and an accountant's declaration rather than tax returns. It is commonly used when tax returns understate actual income.

Can I get an investment loan if I'm self-employed?

Absolutely. Investment property loans for self-employed borrowers follow the same process. Rental income from the investment is also factored into borrowing capacity — which often makes it easier to qualify.

How do lenders assess contractor income?

Contractors are assessed differently depending on whether they are on a day rate contract or project-based. Day rate contractors on long-term contracts are often assessed similarly to PAYG. Those on project-based income are assessed using 2 years' average income or the low doc pathway.

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Self-Employed Specialist · ABN Accepted · Low Doc · Alt Doc

Self-Employed Home Loans Sydney —
Approved Where Banks Said No

Mortgagefy Broker Team · Published 2026-04-07 · Last reviewed 2026-04-29

Banks built their forms for payslips. We use add-backs, BAS statements, and specialist lenders to maximise your borrowing power — even under 2 years ABN. ABN holders, sole traders, contractors, and company directors welcome.

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ABN from 6 Months

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Mortgagefy Broker

Banks Were Built For Payslips.
You Don't Have One.

If you're self-employed, running a business, or contracting — the big banks will reject you before they've even looked at how much money you actually make. Their assessment systems rely on two years of consistent, PAYG-style income. Most self-employed borrowers legitimately minimise their taxable income through legitimate deductions — which looks terrible on a standard bank application.

The result? Capable, high-earning business owners get knocked back while employees earning less get approved. It's a system problem, not a you problem. And it has solutions — if you know where to look.

Who We Help

No Payslips

Banks rely on PAYG payslips. We use BAS statements, bank statements, and accountant letters instead.

Fluctuating Income

Variable monthly income scares standard lenders. We present your income the right way for specialist lenders.

New ABN

Most banks want 2+ years. Our specialist lenders accept ABNs from 6 months with the right documents.

Low Tax Returns

Your tax return understates your income. Add-backs let us present your actual earning capacity to lenders.

Our Clients

Who We Help

If your income doesn't fit in a standard bank form, you're our kind of client.

🧾

Sole Traders

ABN-registered individuals running their own business

🏢

Company Directors

Directors drawing salary or dividends from their company

💻

Contractors

IT, engineering, and professional contractors on day rates

🔧

Tradies

Plumbers, electricians, builders, and trade business owners

🎨

Freelancers

Designers, writers, consultants, and creative professionals

🤝

Partnership Owners

Business partners sharing income through a joint structure

🏗️

Project-Based Income

Variable or lumpy income from project-to-project work

🌱

New Business Owners

ABN holders under 2 years — specialist lender options available

Not sure which category you are?

Loan Types

Full Doc vs Low Doc vs Alt Doc

Three different ways to prove your income — your situation determines which one is right for you.

Best Rate

Full Doc

Standard income verification using your tax returns and financial statements. Lowest rates, widest lender choice.

2 years personal & business tax returns

ATO Notice of Assessment

Business financials (P&L, balance sheet)

Add-backs can be applied

Best for: 2+ years ABN, good profitability, access to major banks

Low Doc

Minimal documentation — no tax returns required. Uses BAS statements or bank statements as income evidence instead.

Last 12 months BAS statements (or)

6–12 months business bank statements

Accountant's income declaration

Self-verification of income

Best for: ABN 6 months+, tax return understates income, faster process

Flexible

Alt Doc

Alternative documentation — a blend of income evidence when tax returns alone don't reflect your true income capacity.

BAS statements + accountant letter

Bank statements + income declaration

Mix of tax return + BAS evidence

Lender-specific flexible criteria

Best for: 1–2 years ABN, complex income structure, mixed evidence

Not sure which type applies to you? We'll assess your situation in a free 10-minute call.

The Add-Back Advantage

Your Tax Return Lies About Your Income.
Add-Backs Fix That.

Most self-employed borrowers legitimately reduce their taxable income through business deductions. Banks only see the bottom line — which looks terrible. Add-backs let us add those deductions back to your income for loan assessment, dramatically increasing your borrowing power.

Depreciation on equipment & vehicles

Home office deductions

One-off business costs & non-recurring expenses

Personal superannuation contributions above SGC

Interest on business loans (where not income-producing)

Worked Example: The Add-Back in Action

Priya K. — Business owner, Newtown NSW

Without Add-Backs (Bank Assessment)

Tax return income $95,000

Estimated borrowing power ~$380,000

Add-Backs Identified:

Depreciation (vehicle + equipment)+$28,000

Home office deduction+$9,000

One-off fit-out expense+$8,000

Total add-backs+$45,000

With Add-Backs (Our Assessment)

Assessed income $140,000

Borrowing power ~$760,000

Add-backs doubled Priya's borrowing capacity by $380,000

Lender Types

How Different Lenders Assess You

Not all lenders are the same. Knowing which type suits your situation is the difference between approval and rejection.

Lender Type	ABN Required	Doc Type	Max LVR	Add-Backs?
Major Banks CBA, ANZ, Westpac, NAB	2+ years	Full doc only	80% (no LMI)	Limited
Second-Tier Banks ING, Suncorp, Bankwest	2 years	Full doc preferred	90% with LMI	Yes (some)
Specialist Lenders ⭐ Pepper, Liberty, La Trobe	6–12 months	Low doc / Alt doc	85–90%	Yes — generous
Non-Conforming Bluestone, RedZed, Firstmac	6 months+	Bank statements OK	80–85%	Yes
Private / Niche Boutique & specialist	Varies	Highly flexible	Up to 80%	Case by case

Table is indicative only. Actual criteria vary by lender and application. We match you to the right lender for your exact situation.

Under 2 Years ABN

Started Your Business Recently? You Still Have Options.

The most common objection self-employed borrowers face is "come back when you've been operating for 2 years." That's a bank rule — not an industry rule. Specialist and non-conforming lenders assess new business owners very differently, and often approve applications from 6 months ABN.

The key factors are: what income evidence you can provide, the strength of your deposit, and which lender your broker matches you to. A broker who doesn't work regularly with under-2-year ABN borrowers will send you away. We won't.

See My Document Options

Under 6 months ABN

Very limited options — niche private lenders only. Strong deposit required. Speak to us before applying anywhere.

6 – 12 months ABN

Specialist lenders available (Pepper, Liberty, La Trobe). Use 3–6 months business bank statements or accountant letter. Higher rate expected.

1 – 2 years ABN

Good specialist options. 1 year tax return or BAS statements accepted. Some second-tier banks now accessible. Solid approval rate with right presentation.

2+ years ABN

Full lender panel accessible. Major banks available with full doc. Specialist lenders for low doc. Best rates, widest choice, add-backs fully applicable.

Real Results

Self-Employed Clients We've Helped

Every situation is different. Here are three real clients and how we got them across the line.

Omar S. — Electrician

Lakemba, NSW

The Problem

Low doc required — only had 2 completed BAS statements. Bank declined citing insufficient trading history.

Our Solution

Structured as a low doc loan with a specialist lender. Applied add-back strategy and LMI waiver approach at 87% LVR.

The Result

Approved at 87% LVR. $23,000 in LMI saved. Settled in 22 days.

Priya K. — Business Owner

Newtown, NSW

The Problem

Business expenses had reduced taxable income significantly. Her tax return showed $95k — far below her actual earning capacity.

Our Solution

Identified $45,000 in allowable add-backs — depreciation, vehicle expenses, home office. Assessable income raised to $140k.

The Result

Borrowing capacity doubled from $380,000 to $760,000. Investment property secured.

Anna R. — Café Owner

Parramatta, NSW

The Problem

Only 8 months ABN. Two banks declined. No tax return available. Standard lenders completely out of reach.

Our Solution

Matched to a specialist lender who accepted 3 months business bank statements as primary income evidence.

The Result

Approved for $540,000. Settled in 19 days. No bank would touch it — we made it happen.

Simple Process

How We Get You Approved

From first contact to settlement — here's what to expect.

Free Assessment

We review your income structure, ABN age, deposit, and goals. No cost, no obligation — just clarity on your options.

Document Strategy

We tell you exactly which documents to gather — and how to present your income to maximise your assessed borrowing capacity.

Lender Match

We match your profile to the right lender — the one most likely to approve at the best rate given your specific income structure.

Approved

We lodge with confidence. We track your application to settlement and handle every step — so you focus on your business.

Self-Employed Case Studies

MFAA Accredited

The following case studies are illustrative examples based on typical borrower scenarios. They do not represent specific individual clients. Actual outcomes depend on individual circumstances, lender assessment, and market conditions at time of application. Mortgagefy (Credit Representative No. 532656) provides credit assistance only and does not guarantee loan approval or specific outcomes.

📋 Illustrative Case Study

New ABN — Sole Trader, Burwood

In this scenario, a sole trader with only 13 months of ABN history who had been declined by major banks was approved at 87% LVR using BAS statements as evidence of income.

What we did: Identified specialist lender accepting 1-year ABN, prepared BAS-based income evidence.

Illustrative example only. Individual outcomes vary based on loan amount, lender assessment, and personal financial circumstances.

📋 Illustrative Case Study

Low-Doc Approval — Tradesperson, Lakemba

In this scenario, a self-employed tradesperson who banks referred back was approved via an alt-doc loan using BAS statements, saving approximately $23,000 in LMI through a specialist lender.

What we did: Structured alt-doc application using BAS statements, matched to right specialist lender.

Illustrative example only. Individual outcomes vary based on loan amount, lender assessment, and personal financial circumstances.

📋 Illustrative Case Study

Add-Back Strategy — Business Owner, Newtown

In this scenario, a business owner with a low-looking tax return had borrowing capacity increased by approximately $140,000 by applying depreciation and vehicle add-backs with a specialist lender.

What we did: Applied depreciation and vehicle add-backs, matched to specialist lender with flexible income assessment.

Illustrative example only. Individual outcomes vary based on loan amount, lender assessment, and personal financial circumstances.

Add-Back Calculator

See How Add-Backs Unlock Your Borrowing Power

Your tax return shows low income — but specialist lenders assess it differently. Enter your actual figures below.

Your Income & Expenses

All figures are annual. Leave blank if not applicable.

Business Income (from tax returns)

Year 1 Net Profit / Taxable Income ? Enter your most recent year's net profit or taxable income from your tax return — before adding back expenses.

Year 2 Net Profit (optional — 2-year average) ? If you have two years of tax returns, enter year 2 here. Most lenders use the lower of the two years, or a 2-year average.

Partner / Spouse Income (if applicable) ? If your partner earns income and will be on the loan, enter their gross annual income here. It is added directly to the household assessed income.

Add-Backs

These are deductions lenders add back to increase your assessed income.

Depreciation ? Non-cash deduction for asset wear. Almost all specialist lenders add this back — it's not a real cash expense.

Interest & Finance Charges ? Business loan interest or finance lease charges deducted on the tax return. Added back by many specialist lenders.

Vehicle / Motor Expenses ? Personal-use component of vehicle expenses claimed as business deductions. Lenders often add back 50–100% depending on the claim method.

Home Office Expenses ? Home office deductions (occupancy or running costs). Added back when lenders see the property is your primary residence.

One-Off / Non-Recurring Expenses ? Legal fees, equipment write-offs, or other once-only costs that won't repeat. Lenders will add these back when documented.

Super Contributions (above SG) ? Voluntary superannuation contributions above the 11% Superannuation Guarantee rate. The excess is often added back.

Loan Details

Loan Term

Available Deposit (savings / equity) ? Your usable deposit after costs (stamp duty, legal fees etc.). Used to calculate the property value you can reach and your LVR.

Monthly Living Expenses (household) ? Estimated monthly household living costs — groceries, utilities, transport, insurance etc. Does not include existing debt repayments.

Existing Debt Repayments (monthly) ? Total monthly repayments on any existing loans — car loans, personal loans, credit cards (use 3% of limit), HECS. Enter 0 if none.

Estimated Borrowing Power

—

Based on specialist lender assessment · APRA 3% buffer applied

Lender Type

—

Est. Monthly Repayment

—

Property You Could Buy

—

Enter your deposit to see property value

—

Base net profit —

Total add-backs —

Partner income —

Total assessed income —

Available monthly surplus —

Get a broker to verify your exact figure

Calculators estimate — brokers confirm. We'll check the real lender criteria for your situation.

Wide lender panel · Banks + Specialists

Compare loan options from major banks and specialist lenders.

Explore All Our Lenders

Wide lender panel · Banks + Specialists Personalised Loan Options No Obligation Assessment

We work with a wide panel of lenders across Australia. We are not tied to any one lender and compare loan options to help find a solution that suits your needs. All applications are subject to lender approval and lending criteria.

Common Questions

Self-Employed Home Loan FAQ

Everything you need to know about getting a home loan when you're self-employed in Sydney.

Yes — with the right lender and documentation. After 12 months of trading, several specialist lenders will consider your application using 1 year of tax returns or BAS statements. In some cases, an accountant's letter confirming income can substitute. The key is knowing which lenders to approach and how to present your income correctly. Been knocked back already? Here's what to do →

A low documentation (low doc) home loan is designed for borrowers who cannot provide standard proof of income like payslips or tax returns. Instead, lenders accept alternative evidence such as BAS statements, business bank statements, or an accountant's declaration. Low doc loans typically carry a slightly higher interest rate than full doc loans and are primarily offered through specialist and non-conforming lenders. They are the most common pathway for ABN holders under 2 years.

Alt doc (alternative documentation) sits between full doc and low doc. It uses a combination of income evidence — usually BAS statements, business bank statements, and an accountant's letter together — rather than relying on tax returns alone. Alt doc is particularly useful when your most recent tax return understates your current income, or when you have 1–2 years of ABN history. It provides more flexibility than low doc while being less stringent than full doc requirements.

An add-back is a business expense that can be added back to your taxable income for loan assessment purposes. Many self-employed people legitimately reduce their taxable income through depreciation on equipment, vehicle expenses, home office deductions, and one-off business costs. Lenders that allow add-backs add these figures back to arrive at your actual earning capacity. For example, if your tax return shows $95,000 income but you have $45,000 in allowable add-backs, your assessed income becomes $140,000 — which can double your borrowing capacity. Not all lenders allow add-backs; this is why choosing the right lender matters enormously.

Not necessarily. Many self-employed borrowers are approved with a 10% deposit (90% LVR), and some specialist lenders go to 85–90% LVR with LMI. Certain lenders even waive LMI at higher LVRs for eligible self-employed borrowers in specific professions. A 20% deposit removes the need for LMI entirely, but it is not a requirement. Your broker will advise the most practical deposit structure for your situation and ABN age.

Contractors are assessed differently depending on their income structure. Day-rate contractors on long-term contracts (particularly IT and engineering) are often treated similarly to PAYG employees — especially if they can show a current contract with remaining term. Project-based contractors or those between contracts are typically assessed using 2 years' average income through the full doc pathway, or the low doc pathway using BAS statements. The key documents are: current contract, 2 years tax returns (if available), and business bank statements showing regular income deposits.

Absolutely. Investment property loans for self-employed borrowers follow the same process as owner-occupier loans. The key advantage is that rental income from the investment property is also factored into your borrowing capacity — which often makes it easier to qualify. Specialist lenders are very active in this space. We have helped many self-employed investors build their portfolios using low doc and specialist lending strategies. Learn more about investment loans →

Yes — a bank decline is not the end. In fact, many of our self-employed clients come to us after being knocked back by one or more banks. Banks use rigid automated assessment systems that flag self-employed applications early in the process. Specialist lenders like Pepper Money, Liberty, La Trobe, Bluestone, and RedZed use human credit assessors and are specifically built to handle the complexity of self-employed income. The key is: do not apply to multiple lenders without guidance, as multiple credit enquiries can reduce your score. Come to us first and we'll identify the right lender before lodging a single application. More on what to do after a bank knockback →

❌ Bank Knockbacks 📈 Investment Loans 🏠 First Home Buyers 🧮 Calculators 📖 Low Doc Guide

Get Your Free Self-Employed Assessment

Tell us about your situation — a specialist broker will review your income structure and present your best loan options.

Ask Mortgagefy — Self-Employed Lending Questions

Real questions from Sydney business owners and contractors. Straight answers.

An add-back is a legitimate expense that specialist lenders add back to your taxable income when assessing your loan — things like depreciation, vehicle expenses, and home office deductions claimed through your business. This can significantly increase your assessed borrowing capacity compared to what your tax return alone suggests. Use our add-back calculator →

Yes — some specialist lenders accept 1 year of ABN history. You'll typically need strong BAS statements, a good credit history, and a clean explanation of your business. Rates may be slightly higher, but approval is absolutely possible. We identify which lenders are most suitable for your specific situation. Speak to a broker →

Low doc loans use minimal documentation, often just a self-declaration of income. Alt doc loans use alternative evidence like BAS statements, business bank statements, or an accountant's letter — typically giving better rates and higher approval chances than pure low doc. Most specialist lenders prefer alt doc if available. Compare your options →

With major banks, yes — they use your taxable income, so legitimate deductions reduce what they assess as your earnings. But specialist lenders use add-back methodology, adding back depreciation, vehicle costs, and other non-cash deductions to get a truer picture of your actual income and capacity. See how much you could borrow →

Yes — many of our clients borrow via company or trust. Lenders assess the income differently depending on your structure. We work with lenders experienced in company and trust borrowers to ensure your income is presented and assessed accurately. Speak to your accountant about the tax implications of your structure choice. Get a free assessment →

Each income stream is assessed individually based on the last 2 years' tax returns. The most favourable approach is typically averaging the two years, or using the lower year if income has fallen. We identify which lenders give the most credit for your specific income mix and how to present the application most effectively. Talk to our team →

Still have a question? Our mortgage assistant answers instantly — free, no obligation.

Ask Our Mortgage Assistant

Are you an accountant with self-employed clients?

We partner with accountants and tax agents across Sydney to help their self-employed clients get loan-ready. We understand add-backs, trust distributions, and company financials — and we'll keep you updated at every milestone. Simple referral process, zero admin on your end.

Become a Referral Partner

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Talk to a Sydney broker who funds self-employed borrowers the banks can't

Start Your Free Assessment Call 0432 634 648

Self-Employed Home Loans Sydney —Approved Where Banks Said No

Banks Were Built For Payslips.You Don't Have One.

No Payslips

Fluctuating Income

New ABN

Low Tax Returns

Who We Help

Sole Traders

Company Directors

Contractors

Tradies

Freelancers

Partnership Owners

Project-Based Income

New Business Owners

Full Doc vs Low Doc vs Alt Doc

Full Doc

Low Doc

Alt Doc

Your Tax Return Lies About Your Income.Add-Backs Fix That.

Worked Example: The Add-Back in Action

How Different Lenders Assess You

What You'll Need to Apply

Personal Documents

Business / Income Documents

Personal Documents

Income Evidence (choose one pathway)

Personal Documents

Alternative Income Evidence

Started Your Business Recently? You Still Have Options.

Self-Employed Clients We've Helped

How We Get You Approved

Free Assessment

Document Strategy

Lender Match

Approved

Self-Employed Case Studies

See How Add-Backs Unlock Your Borrowing Power

Your Income & Expenses

Wide lender panel · Banks + Specialists

Self-Employed Home Loan FAQ

Related Pages

Get Your Free Self-Employed Assessment

Ask Mortgagefy — Self-Employed Lending Questions

Are you an accountant with self-employed clients?

Further Reading — Self-Employed Home Loan Guides

Free Eligibility Check

Unlock Your Self-Employed Assessment

Wait — Don't Leave Without This.

Get your free Sydney self-employed assessment

Self-Employed Home Loans Sydney —
Approved Where Banks Said No

Banks Were Built For Payslips.
You Don't Have One.

Your Tax Return Lies About Your Income.
Add-Backs Fix That.