Self-employed · One year Home loan with one year of tax returns
Two years of tax returns is the standard, but it isn’t the only way in. Some lenders accept one full year. Whether that suits you depends on what your first year shows, what you did before, and whether waiting a few months would open more lenders.
Key takeaways
- Some lenders accept one full year of lodged tax returns, usually with your notice of assessment and recent BAS.
- A work history in the same field before you started the business is often what makes one year enough.
- A one-year full doc loan usually beats a low doc loan on rate and maximum loan size.
- If your first return covers only a few months of trading, waiting for the second one is often the better answer.
Who a one-year application suits
- You’ve lodged one full financial year, and the ATO has assessed it.
- You did the same work as an employee, or in another business, before this one.
- Your BAS since then shows the business trading at the same level or higher.
- Your lodgements are up to date, and any ATO debt is under a payment plan.
- You need the loan now, for a reason that won’t wait: a lease ending or a property you’ve found.
Who should usually wait
- Your first return covers only a few months of trading, so the income looks low.
- Your BAS has dropped since that first year.
- You moved into a completely new line of work when you started the business.
- Your second return is only a few months away, and it would show a higher income.
- You have ATO debt with no arrangement in place.
Home loans with one year of tax returns in Australia
Lender policy for self-employed borrowers is set nationally, so a one-year application works the same way in every state. The lenders that offer it are usually looking for the same thing: evidence that your first year wasn’t a one-off.
That evidence can come from your work history, from your BAS since the return, or from your accountant. What lenders won’t do is use a year that hasn’t been lodged and assessed.
Under two years self-employed: your options
- A one-year full doc loan. One lodged return, a notice of assessment, recent BAS. Fewer lenders than two years, but usually the same kind of rates.
- A contractor assessment. If you work for one or two clients on a day rate, some lenders annualise your rate instead. See sole traders and tradies.
- A low doc loan. No lodged return needed. BAS, business bank statements or an accountant’s declaration instead, at a higher rate and with a smaller maximum loan.
- Waiting for the second return. More lenders, and two years to average, which helps when the second year is stronger.
- A co-borrower on a salary. If you’re buying with a partner on a salary, their income may carry more of the application.
Low doc as the alternative
A low doc loan uses other evidence of income instead of tax returns. It’s built for business owners whose returns aren’t lodged yet, or don’t reflect what the business now earns.
The catch, in writing: rates are usually higher, the maximum loan as a share of the property’s value is usually lower, and some lenders charge higher fees. It can be a way in, with a plan to refinance once your returns catch up. I review it with you once the second return is lodged.
The timing that matters
The financial year ends on 30 June. Once your records are ready, a return can be lodged from July. A lender can use it once the ATO has issued your notice of assessment.
So a business that started in early 2025 could have a first full year (2025–26) lodged from July 2026, and a second full year from July 2027. If your loan can wait until the second return, more lenders open up. If it can’t, the one-year lenders are where to look.
When you lodge is a decision for you and your accountant. I’ll tell you what each date would mean for your loan.
FAQ Questions clients ask
Can I get a home loan with only one year of tax returns?
Yes, with some lenders. Most lenders want two years, but some accept one full year of lodged returns, usually with your notice of assessment, recent BAS and a history in the same line of work before you started the business.
What else do lenders ask for with one year of tax returns?
Usually your ATO notice of assessment for that year, BAS since then to show the business is still trading at the same level, proof of your work history in the same field, and sometimes a letter from your accountant. Lodgements need to be up to date.
Is a low doc loan better than a one-year full doc loan?
Usually not, if you qualify for the one-year option. A full doc loan on one year of returns tends to come with a lower rate and a higher maximum loan than low doc. Low doc is the option when there’s no lodged return to use yet.
Does my first year count if I only traded for part of it?
It counts, but a part year often shows a low income because it only covers a few months. Some lenders look at the months you traded, many don’t. If your first return only covers a few months, the second return is often worth waiting for.
Can I lodge my tax return early to apply sooner?
You can lodge from the start of July once the financial year has ended, if your records are ready. A lender can only use a return that has been lodged and assessed, so lodging early can bring an application forward. When you lodge is a decision for you and your accountant.
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