Using Business Income to Buy a Home in Australia

Is it possible to buy a home with business income in Australia?

If you’re a business owner dreaming of homeownership, you’re in good company. Many self-employed Australians wonder if their business income can open the door to buying a property. The good news is yes — it’s absolutely possible. But there are a few extra steps, documents, and expectations to be aware of along the way.

Unlike salaried employees, self-employed individuals need to show a clearer picture of income consistency and business viability. For instance, you may need to provide tax returns from the last two years, business activity statements (BAS), and possibly even a letter from your accountant. Lenders want to feel confident that your income is stable enough to support mortgage repayments.

Let’s take Anna, a small business owner from Brisbane who runs a boutique marketing consultancy. With two financially strong years behind her, she was able to use her net business profit and supporting documentation to secure a competitive home loan rate. She worked with a broker to present her income clearly — and that made all the difference.

The key benefit is flexibility: you’re allowed to use either your business profits or your personal salary (if you draw one) to demonstrate borrowing capacity. Some lenders even specialise in what’s known as ‘low doc’ loans for business owners. These loans require fewer documents but often come with higher interest rates or lower LVR (Loan-to-Value Ratio) options.

When using business income to buy a home in Australia, it’s crucial to plan ahead. Lenders interpret financials differently, and your personal and business finances may need tidying up before applying. Engaging a mortgage broker or financial adviser early on can help streamline your path to approval.

Ultimately, business owners are just as eligible for home ownership as anyone — they just need to be a little more prepared. *Explore further*.