Can I get a home loan in Australia if I am self employed and abn under two years?

It is possible to get home loans in Australia if you are self employed and have an ABN registered under 2 years, but it may be more difficult than if you had two years of lodged tax returns or were employed by a company. Lenders generally prefer borrowers with a stable income and employment history, so self-employed borrowers may need to provide additional documentation and meet stricter requirements.

Here are some factors that low doc home loan lenders may consider when evaluating a home loan application from a self-employed borrower with an ABN under 2 years:

  1. Income: Lenders will want to see that you have a consistent income that is sufficient to cover the mortgage repayments. They may ask to see your business bank statements or business activity statements to verify your income while some low doc home loan funders will seek Accountant verification of income.
  2. Credit history: Lenders will also look at your credit history to see if you have a good track record of repaying debts on time. If you have a history of late payments or defaults, it may be harder to get approved for a home loan. It is possible to get a low doc home loan with bad credit however rates and costs are much higher.
  3. Savings: Lenders may want to see that you have at least 20% savings to cover the deposit and other upfront costs associated with buying a home.
  4. Property type: The type of property you are buying can also affect your chances of getting approved for a home loan. Some lenders may have restrictions on lending for certain types of properties, such as high rise apartments or rural properties.

Home Loans for Self Employed Australians

Overall, while it may be more challenging to get a home loan as a self-employed borrower with an ABN under 2 years, it is still possible. It is recommended that you speak to a mortgage broker or non conforming lender to discuss your options and see what you can do to improve your chances of getting approved.