Can You Use Your Business Income to Buy a Home?
If you’re a small business owner or self-employed professional in Australia, you’ve probably wondered: can I buy a house with my business income in Australia? The answer is yes, but it comes with a few more hurdles than it does for salaried employees.
Many lenders are open to using Australian business income for home purchase assessments. However, they’ll want to see clear evidence of stable earnings. That often means providing at least two years of tax returns, business activity statements, profit and loss statements, and sometimes a letter from your accountant. Having this documentation ready can significantly increase your loan approval chances.
Take the example of a graphic designer running an SME in Sydney. With steady net profits over the past three years, she successfully secured finance by working with a mortgage broker who understood how to present her SME income in the best possible light. Lenders want to understand not just what you earn, but how consistent and sustainable that income is.
Lenders also assess how much of your earnings you reinvest into the business versus drawing as personal income. Balancing your books to show a healthy income-to-debt ratio is key. Working closely with a finance professional who understands how to finance a home with business earnings in Australia can help align your financials with lender expectations.
We are here to help you navigate the business income requirements for Australian home buyers and connect you with lenders who understand your situation.
Leave a Reply