August 31, 2017 Laura Osti2 mins

The home loan industry has been slow to catch up to a rapidly changing workforce: even though there are 2.4 million self-employed Australians, it’s still harder for self-employed applicants to get a home loan. And why should your entrepreneurial spirit cost you your dream home? Don’t worry. By being prepared, self-employed customers can get the same access to home finance. (And in the meantime, hopefully the industry catches up a little.) 

Know your taxable income for the last couple of years.

‘Taxable income’ means the income you pay tax on. One of the issues self-employed customers face, is that their accountants are very good at reducing their taxable income so that they pay less tax – which is good at the end of the financial year, but not so good when you’re applying for credit. This is because most lenders won’t assess your application on anything other than your taxable income, which is how they determine your ability to repay the loan.


Be prepared with documentation.

Most lenders, including Tic:Toc, will require two years of personal tax returns and tax assessment notices. If you run your business using a company structure, Tic:Toc will also need two years’ of the company financial statements and tax returns. Be sure to have this stuff ready to avoid wasting your time.

Also, be aware that if there is a large difference between your taxable income within the two financial years, the lender will usually use the lower of the two figures to assess your borrowing power and ability to service the loan.


I’m self-employed: can I apply for a home loan with Tic:Toc?

Of course you can. Tic:Toc has some of the most flexible self-employed options in the market. Check out which loan is best for you on our I'm self-employed page.


The only difference you’ll find (as a self-employed person compared to a PAYG customer), is that we won’t be able to instantly validate your financial statements by linking your bank accounts. Instead, you can upload your statements, and our human credit assessors will take a look them to assess your application. They’re not as fast as our robot (no one in the world is, so they don’t take it personally), but they can still get you an answer within one business day.


Still have some questions? Let's talk.