Can you get a NAB home loan if you’re self-employed?

Yes, it’s possible to qualify for a home loan at NAB while self-employed. Not everyone works a traditional 9-to-5 job, and we’re here to support business owners and freelancers too. The process may involve some extra documentation so we can get a clear picture of your income and business growth. It helps us make sure your loan is set up in a way that’s manageable and works for you so you can feel confident about your repayments.

Getting pre-approval when you’re self-employed

It’s a smart move to get pre-approval before you start house hunting. Also known as conditional approval, pre-approval gives you a clear idea of your borrowing capacity. It shows sellers and agents you’re serious and financially ready to make an offer.

What we’ll check

  • At least 1 to 2 years of self-employed income history
  • Recent personal and business tax returns
  • Notices of assessment from the ATO
  • Proof that your business is profitable and stable
  • A good credit score and clean financial record

Tip: Pre-approvals are highly effective when your financials are current and strong. Learn more about the home loan application process.

Documents you need

When applying for a home loan as a self-employed individual or sole trader, you'll need to provide specific documents to demonstrate your financial stability. These typically include:

  • Personal tax returns for the past two years

  • Business tax returns for the past two years

  • Business Activity Statements (BAS) if tax returns aren’t available

  • ABN and GST registration details

  • Profit and loss statements

  • Balance sheets

  • Bank statements (both personal and business)

  • Proof of any other income

Unlike many other financial institutions, NAB allows a single year’s financial statements to explore lending opportunities where loan-to-value ratio (LVR) is 80% or less. Other terms and conditions will apply.

Impact of fluctuating income on self-employed home loans

Yes, fluctuating income can impact your loan application. For instance, if your income changes month-to-month, lenders may average out your income across a specific period to determine how much you can borrow. But, if your income from a specified period is significantly lower than a comparable previous period, they may use the lower amount to assess your borrowing capacity. If your income varies, you’ll need to provide additional documentation to demonstrate overall stability, such as contracts or long-term client agreements.

Tips to improve your application

Improving your home loan application is crucial, especially when self-employed. Here are some tips to help you stand out:

Maintain accurate records

Ensure your financial records are up-to-date and accurately reflect your earnings. Keep your business and personal accounts separate. Also make sure you have a registered Australian Business Number (ABN).

Show stable income

Provide documentation showcasing year-on-year growth and explanations of one-off outlays (for example, equipment investments). Even a letter from your accountant summarising your financial position may be beneficial.

Save for a larger deposit

A larger deposit (20% or higher) reduces the amount you need to borrow and shows us that you're financially responsible. It’ll also help you avoid paying lenders mortgage insurance (LMI).

A healthy credit score

Lenders consider your debt-to-income ratio when assessing your application. Paying off or reducing existing debts can improve this ratio and make you a more suitable applicant for a home loan.

Best time to apply for a home loan

When you’re self-employed, the best time to apply for a home loan is when your financials are strong and stable. The idea is that you’re able to keep on top of repayments and other living expenses. When applying with us, ensure you have at least one year of solid income records and have addressed any business or personal debts. Additionally, applying when you have a healthy savings buffer and minimal financial disruptions will work in your favour. Getting a home loan as a self-employed individual is within your reach. By following these tips and preparing thoroughly, you can improve your chances. If you’re ready to take the next step towards home ownership, our home loan experts can help.

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Other home and property guides

Buying a home on a single income

Learn how to plan your home purchase on a single income with this step-by-step guide

How to get a home loan

See a full list of the information we'll request here.

First home buyer’s guide

Our easy step-by-step guide to buying your first home.

Tools and calculators

How much can I borrow?

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Which home loan is right for me?

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Use a budget planner to help you save

Use our free budget planner to create a monthly budget.

First home buyer basics

Have more questions on your first home buyer journey? Our guides answer them all.

Contact us for home loan related queries

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Terms and Conditions

The information contained in this article is intended to be of a general nature only. It has been prepared without taking into account any person’s objectives, financial situation or needs. Before acting on this information, NAB recommends that you consider whether it is appropriate for your circumstances. NAB recommends that you seek independent legal, financial and taxation advice before acting on any information in this article.

Target Market Determinations for these products are available at nab.com.au/TMD.