19 Jan 2022

How Long Do You Need to be Self-Employed to Get a Mortgage?

Self-Employed to Get a Mortgage

As the world continues to digitise and become a global network, more and more Australians are starting their own businesses and working as contractors or self-employed individuals! This movement has allowed many people to gain freedom but has left a lot of questions when it comes to banking and mortgages.

How long do you need to be self-employed to get a mortgage? The answer fully depends on the time and the particular company you are looking at! Each company and bank has its own self-employer-friendly qualifications and rules when it comes to borrowing and proof of income.

Newly Self-Employed

Not all businesses or banks will look at you in Australia if you do not have more than one year of self-employment. This is because there is a lack of paperwork and reliability. Banks and companies want to cover their backs and ensure that they either make a profit off of interest or at least get their money back!

However, there are some lender companies and big banks that will allow newly self-employed individuals to borrow money. Most of the time, though, the amount that they can borrow decreases significantly. For instance, some Mortgage calculators estimate that a self-employed person with a lack of experience can borrow up to 80%.

1-2 Years of Experience

Companies and banks like to see the experience! This is because the more proof they have that you are gaining money, the more trust they have in you. Having more years of experience can help you earn more borrowing power. For instance, banks in Australia may give up to 90% borrowing to an individual with 1-2 years of self-employment.

2+ Years of Experience

Once you have over two years of experience as a self-employed individual, banks typically don’t have a problem allowing you to borrow as much as possible. However, the consistency of the amount you get paid must be high enough to garner trust.


Truthfully, the amount of borrowing depends on the years of experience you have as a self-employed individual. The more experience and proof you have, the better chances you have of gaining a lender with appropriate rates!

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