Self Employed? 4 Tips For Buying A Home

If you're a self-employed borrower or a small business owner, you’re probably already very familiar with the ongoing challenges of keeping your accounts, finances, and income all in order. It's not easy.

But there's some good news. Getting a home loan doesn’t have to be yet another issue to worry about. We’ve put together four steps that could help self-employed borrowers prepare for the home loan process.


Self-employed home loan and income

1. Know your numbers: And the different ways they show up

When lenders are assessing a home loan application, they tend to look for a steady level of income that shows you’re able to make your mortgage repayments.

So gathering the right paperwork to show you’re capable of making your monthly repayments is a good starting point. First up, collate the paperwork that tells them that you have been self-employed for a consistent amount of time and that you earn a regular amount each month. Being able to show this could work in your favour.

Self-employed home loan financial statements

2. Fast track to your goals: Be up front with your lender

From the outset, it's important to be upfront about what's been going on in your business. This is particularly essential if there are any large variations up or down in the taxable income shown on your annual financial statements from one year to the next. 
Self-employed home loan taxable income

3. Tackle the taxable-income dilemma: Get the right help

One of the major challenges self-employed borrowers and small business owners face when it comes to securing a home loan is accurately calculating taxable income. Being able to do this is important, as it allows lenders to assess your ability to make your home loan repayments on an ongoing basis. Talking to a financial adviser or tax professional about working out your taxable income could play an important role in your home loan application.
Self-employed home loan cash-flow

4. Improve your cash flow: Keep things on track

Making the most of your cash flow can be beneficial for people who are self-employed. Paying off any outstanding debts such as credit cards or personal loans could positively impact your cash flow, and potentially your credit score, which could mean that you'll qualify for a higher loan amount with some lenders. To get a rough idea of how much you can potentially borrow, try out borrowing power calculator


We’re here to help

While these tips can assist with your planning for a home loan application in the future, there are options for self-employed people who are looking to get a home loan.

Alternative documentation home loan applications (Alt Doc for short) are designed to meet the unique needs of self-employed or small business owners who can't provide the same income documentation required by traditional lenders and mortgage insurers.

When we assess an 'Alt Doc' application some of the things we evaluate in our assessment are:

  • Has your NZBN been registered for at least 6 months?
  • Has your business been GST registered for at least 6 months?
  • Bank Account Statements


If you’re having trouble because of your type of employment or because your income doesn't tick the right boxes, talk to one of our Lending Specialists on  0800 166 330 or enquire online to find out more about our self-employed home loans

Apply for a Pepper Money Home Loan

Want to find out where you stand? Calculate your Borrowing Power.

Work out how much you may be able to borrow with us in just a few simple steps – and it won't impact your credit score.


You are protected by responsible lending laws. Because of these protections, the recommendations given to you about home loans are not regulated financial advice. This means that duties and requirements imposed on people who give financial advice do not apply to these recommendations. This includes a duty to comply with a code of conduct and a requirement to be licensed.

All loan applications are subject to the lender completing responsible lending checks and considering the borrower’s individual circumstances. Terms, conditions, fees and charges apply. Information provided is factual information only and is not intended to imply any recommendation about any financial product(s) or constitute tax advice. If you require financial or tax advice you should consult a licensed financial or tax adviser.

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