Sole Trader
Sole Trader Home Loans
As a sole trader, your personal and business income are one and the same on your tax return. Here's exactly how lenders assess you — and how we maximise your position.
How Lenders See You
- Net profit from your tax return (Schedule C / Business Income)
- Average of last 2 years' net profit (most lenders)
- Add-backs for depreciation and non-cash expenses
- BAS turnover as supporting evidence
- Minimum 2 years ABN registration (some accept 1 year)
Common Pitfalls
- Income minimised for tax — lenders see low income
- Declining income trend between years triggers extra scrutiny
- Missing tax returns or late lodgement = automatic decline
- Mixing personal and business expenses without clear records
- Choosing the wrong lender for your income profile
Our CPA Advantage for Sole Traders
As a CPA and registered Tax Agent, James doesn't just forward your tax returns to a lender. He reads them, identifies add-backs, and structures your application to present the strongest possible case.
- Identify non-cash deductions that can be added back (depreciation, amortisation)
- Explain one-off expenses or income dips with supporting narrative
- Select lenders whose policies favour your specific income profile
- Pre-assess your serviceability before lodging to avoid unnecessary credit hits