Builder and Plumber Home Loans Sydney: How Lenders Assess Trade Income

Who this guide is for

• Sole traders and ABN holders in the building and plumbing trades
• Company directors and partners
• Subcontractors and labour-hire tradies
• Employees moving into self-employment
• Owner-builders (see our construction loans page)

The real challenge

Lenders usually assess self-employed income from tax returns. If deductions reduce your taxable income, your borrowing capacity can look lower than your real earning power. Seasonal work and a new business add to that.

Some lenders accept alternative documents such as BAS statements or an accountant's letter, and some consider add-backs for certain business expenses. Policies vary by lender and by how long you have been trading.

Documents lenders may ask for

• Two years of tax returns and notices of assessment, or alternative documents where a lender allows them
• Recent BAS statements and business bank statements
• An accountant's letter confirming your income
• ABN registration details, proof of your deposit and identification
• A list of your debts and credit card limits

Ways to make your application clearer

• Keep your BAS and tax returns lodged on time
• Keep business and personal accounts separate
• Ask your accountant which business expenses a lender may add back
• Avoid new debt and reduce unused credit limits before you apply

You can model repayments and borrowing capacity with our home loan calculators before you speak to a broker.

How it works

1. 1

   Free chat

   A short call about how you are paid, your deposit and your goals.

2. 2

   Compare options

   We look at which lender policies may suit how your income is structured.

3. 3

   Prepare your documents

   We help you gather the documents your situation needs.

4. 4

   Apply and settle

   We help you through application, approval and settlement.