How Much Can You Borrow as a Self-Employed Borrower?

One of the most common questions we receive from self-employed clients is: "How much can I actually borrow?" The answer depends on several factors that differ from standard PAYG assessments.

How Lenders Calculate Self-Employed Income

Lenders look at your income differently depending on your business structure:

Sole Traders — Lenders typically use your net profit from tax returns, or an average of the past two years.

Company Directors — Lenders may consider your salary plus dividends, or the company's net profit.

Trusts — The assessment depends on how distributions are structured and your role in the trust.

Key Factors That Affect Your Borrowing Capacity

1. Income consistency — Lenders prefer stable or growing income over erratic earnings
2. Time in business — Most lenders require at least 2 years of ABN registration
3. Deposit size — A larger deposit reduces lender risk and may unlock better rates
4. Credit history — A clean credit record strengthens your application
5. Existing debts — Outstanding loans and credit card limits reduce your capacity

Strategies to Maximise Your Borrowing Capacity

• Work with a specialist broker who knows which lenders are most favourable to your business structure
• Ensure your BAS statements and bank statements clearly demonstrate your income
• Consider whether your tax minimisation strategies are affecting your assessable income
• Reduce unnecessary credit card limits before applying

Get a Free Assessment

The best way to understand your borrowing capacity is to speak with a specialist. At New Vision Financial, we provide free, no-obligation assessments for self-employed borrowers.

Contact us today on 1300 422 506.