Many self-employed business owners have a significant chunk of their savings sitting in a company or trust account — not their personal bank account. When it comes time to buy a home, a common question is: can I use that business money as a deposit?
The short answer is yes — but not directly from the business account. There are several steps required, and getting them wrong can delay settlement or cause your lender to reject the deposit source. This guide explains the correct process.
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Why Lenders Don't Accept Business Account Deposits Directly
The property being purchased is in your personal name. The home loan is in your personal name. Lenders require that the deposit funds are also in your personal name — specifically, held in a personal bank account for at least 3 months (genuine savings requirement).
A deposit sitting in a company or trust account creates several issues for lenders:
- The funds belong to the entity (company, trust), not to you personally
- The lender cannot verify the funds are freely available — they may be needed for business operations or have other claims against them
- AML/CTF compliance requires a clear source-of-funds trail to your personal account
The Correct Process: Moving Business Profits to Personal
The steps depend on your business structure:
Sole Trader or Partnership
If you operate as a sole trader, you and your business are the same legal entity. Your business profits are already your personal income. You can simply transfer funds from your business bank account to your personal account. Provide 3 months of both accounts' statements showing the transfer and the source. This is the cleanest and simplest scenario.
Pty Ltd Company
Company profits belong to the company — not to you as director. To move them to your personal account, you must either:
- Pay yourself a salary/bonus: Assessable income — subject to PAYG withholding. Net-of-tax amount goes to your personal account.
- Declare and pay a dividend: Franked dividends use company tax credits. You pay personal tax on the grossed-up dividend. Net-of-tax amount goes to your personal account.
- Director loan: Borrow from the company — but this creates a Division 7A loan that must be repaid (with interest) or placed on compliant terms. Lenders will count outstanding director loans as a liability. Use this carefully.
Discretionary (Family) Trust
If profits are sitting in a trust, the trustee must make a formal resolution distributing those profits to you as a beneficiary. The distribution becomes your personal income for tax purposes — you pay income tax on it. The net-of-tax amount is then paid to your personal account and can be used as a deposit after the 3-month holding period.
Document Checklist for a Business-Sourced Deposit
| Document | Purpose |
|---|---|
| Personal bank statements (3 months) | Shows the funds in your name and holding period |
| Business bank statements (3 months) | Shows source of the transfer |
| Company/trust tax returns (2 years) | Confirms business is profitable and funds are legitimate |
| ATO notice of assessment (personal) | Confirms you've declared income from the distribution |
| Accountant letter | Confirms funds are genuine business profits distributed legally |
| Dividend/trust distribution resolution | Legal document authorising the transfer |
Tax Timing: Plan This 3–6 Months Before You Apply
The most common mistake is trying to extract business profits and apply for a loan in the same month. Lenders need 3 months of your personal bank statements showing the funds sitting there. That means:
- Speak to your accountant about distributions 6 months before your target application date
- Pay the tax on the distribution, then transfer the net amount to your personal account
- Keep your personal account clean — no unusual large withdrawals or transfers in the 3-month period
- Ensure the transfer is properly documented by your accountant with a formal resolution or payslip
Frequently Asked Questions
our broker team specialises in self-employed and business owner home loans. If your savings are in a company or trust, call 0432 634 648 to plan the correct approach.
Related: Self-Employed Guides
Business profits ready to use as a deposit?
our broker team can tell you the right way to move and document funds for your situation — free 15-min call.
Call 0432 634 648