Self Employed Loans

At Charter Finance, we specialise in raiding debt for borrowers who are self-employed. Every lender will interpret your business financials differently and will look at your experience in the industry and the risk profile of your industry to determine how to assess your income.

Most lenders now require two-years worth of tax returns although there are still some lo doc options available in the market.

Lenders also assess self-employed income differently including:

  • Some average the earnings across 2 years, others take 120% of the lower of the two years;
  • Some add certain expenses back (like depreciation), others do not

We specialise in finding the lender that will look at your situation most favourably.

Qualifying for a loan

The general lending criteria are:

  • You should have 5% – 10% in ‘genuine’ savings (genuine savings is defined differently by lenders but typically is defined as the funds that an applicant has saved themselves gradually over time. Generally speaking, lenders require at least 5% of savings in the applicant’s account over a three-month period prior to application.
  • A good credit history.
  • A healthy credit score.
  • Stable employment.

How to improve your borrowing capacity

The following are some tips to be maximise your borrowing capacity:

  • Ensure all your existing credit are paid on time with no dishonours showing;
  • Reduce your credit card limits;
  • Do not apply for any other credit (be it cards, cars in the months leading up to applying for a loan);
  • Apply for joint loans if need be;
  • Reduce interest only periods;
  • Fix your rate for three to five years.

Banks credit departments all have different ways of assessing income, which include variances in the percentages they will adopt, example:


Your living expenses and existing credit make a significant difference in how much you can borrow. You may need to reduce your discretionary spending in order to maximise how much you can borrow.

Rental income

Most banks use 80% of rental income while some will use 100%

Other income

Banks assess PAYG salaries in the same way but apply different percentages for other types of income, including dividends, distributions, bonuses, self-employed add backs, overtime etc

Negative gearing

Only some lenders will take the negative gearing benefit into account which can add a significant amount of additional borrowing.

Assessment rates

In 2019, APRA changed the way banks needed to assess a borrower’s capacity to repay a loan. Lenders use different assessment rates and therefore off the same income, will lend different amounts.

Based on the above you will have noted that there are numerous items to consider and we highly recommend calling us to discuss your particular circumstances.

Charter Finance

Find out if you qualify

Get in touch with Charter Finance today and let us chart this journey with you!