If you’re self-employed and dreaming of building wealth through property investment, you’ve probably wondered: “Can self-employed people get investment loans?”
The short answer is yes. The longer answer is where many business owners become frustrated. While employees can often submit a few payslips and move forward, self-employed borrowers face extra scrutiny, more paperwork, and stricter income assessments.
But here’s the good news. Thousands of self-employed Australians secure investment home loans every year. Whether you’re a sole trader, contractor, company director, freelancer, consultant, tradie, medical professional, or business owner, there are now more lending options than ever before.
Many lenders, including Commonwealth Bank, Westpac, ANZ, NAB, Pepper Money, Liberty, Resimac, and Bluestone, offer specialist solutions designed specifically for self-employed borrowers.
In this guide, we’ll explain exactly how self-employed people can get investment loans, which lenders are most flexible, what documents you’ll need, and how to improve your chances of approval.
Quick Answer: Can Self-Employed People Get Investment Loans?
Yes, self-employed people can absolutely get investment loans.
Most lenders simply want evidence that your business generates stable income and can support mortgage repayments.
Depending on your circumstances, you may qualify for:
- -Full Doc Investment Loans
- -Low Doc Investment Loans
- -Alt Doc Investment Loans
- -SMSF Investment Loans
- -Commercial Investment Loans
The type of investment loan you may qualify for will depend on several factors, including your business trading history, taxable income, deposit size, credit score, existing debts, and the type of property you intend to purchase.
How Do Self-Employed Investment Loans Work?
A self-employed investment loan works similarly to a standard investment home loan. The major difference is how lenders assess income.
Instead of relying on payslips and PAYG summaries, lenders review business financials to determine whether your income is stable enough to support the mortgage.
What Do Lenders Look For When Assessing Self-Employed Investment Loans?
Most lenders assess a range of factors when evaluating a self-employed investment loan application, including your business income, personal taxable income, business expenses, existing liabilities, savings history, property investment experience, and overall credit history.
Lenders want confidence that your income is reliable and sustainable over the long term.
Can Self-Employed People Get Investment Loans With One Year Of Trading?
Yes, some lenders will consider applicants with only 12 months of trading history.
This is especially common if you previously worked in the same industry, your business turnover is strong, your BAS statements support your declared income, and you can contribute a larger deposit towards the property purchase.
Specialist lenders often provide more flexible assessment policies than major banks.
Full Doc Investment Loans For Self-Employed Borrowers
A Full Doc loan is usually the cheapest and most competitive option.
If your business has been operating for at least two years and your financial records demonstrate stable earnings, you may qualify for standard investment loan rates.
Documents Required For Full Doc Investment Loans
Most lenders require two years of tax returns, two years of business financial statements, personal tax returns, notices of assessment, and Business Activity Statements (BAS) to verify your income and assess your eligibility for an investment loan.
When financials are strong, self-employed borrowers can often access rates comparable to PAYG employees.
Low Doc Investment Loans For Self-Employed Borrowers
Not every business owner has perfect paperwork. That’s where Low Doc investment loans can help. These products are designed for borrowers who have strong cash flow but limited traditional income documentation.
What Documents Are Needed For Low Doc Investment Loans?
Depending on the lender, you may be able to verify your income using alternative documentation such as BAS statements, an accountant’s declaration, business bank statements, GST registration evidence, and your ABN registration details.
Many self-employed borrowers use Low Doc loans when income fluctuates or tax minimisation strategies reduce taxable income.
Are Low Doc Investment Loans More Expensive?
Generally, yes.
Because lenders take on additional risk, Low Doc investment loan rates are usually slightly higher than Full Doc options. However, they can provide an excellent pathway into property investment when traditional lending criteria are difficult to meet.
Which Lenders Offer Investment Loans For Self-Employed Borrowers?
Several Australian lenders actively support self-employed borrowers. Popular lenders offering investment loans for self-employed borrowers include Commonwealth Bank, Westpac, NAB, ANZ, Macquarie Bank, Pepper Money, Liberty, Resimac, Bluestone Home Loans, Firstmac, and La Trobe Financial, each offering different lending policies and assessment criteria for self-employed applicants.
Each lender has its own policies regarding minimum ABN trading history, income verification requirements, acceptable credit scores, maximum loan-to-value ratios (LVRs), and eligibility criteria for property investment lending. This is why comparing lenders is essential.
How Much Can A Self-Employed Person Borrow For An Investment Property?
Your borrowing capacity will depend on several factors, including your personal income, business profits, existing debts, living expenses, number of dependants, deposit size, and current interest rates.
Many self-employed borrowers are surprised to learn they can borrow significantly more with one lender than another. Assessment methods vary dramatically across the market.
How Can Self-Employed Borrowers Increase Borrowing Capacity?
To maximise your borrowing power, it can help to reduce personal debt, lower credit card limits, maintain clean account conduct, keep your business financials up to date, build a larger deposit, and demonstrate consistent cash flow over time.
Even small improvements can significantly increase borrowing capacity.
Can Self-Employed People Get Investment Loans With Bad Credit?
Yes, although options may be more limited.
Specialist lenders often consider borrowers who have experienced credit challenges such as defaults, judgements, late payments, debt agreements, or other prior credit issues. Approval will typically depend on factors including your current financial position, the size of your available deposit, the reason for the credit impairment, and how much time has passed since the event occurred.
A strong property investment strategy and stable business income can often offset past credit challenges.
Self-Employed Investment Loan Deposit Requirements
Most lenders prefer a deposit of at least 10% to 20%.
However, requirements vary. Typical deposit requirements can range from as little as 5% plus Lenders Mortgage Insurance (LMI) with selected lenders, around 10% for many standard investment loans, 20% to avoid paying LMI, and up to 30% for certain specialist lending scenarios.
The larger your deposit, the more lender options become available.
Are Self-Employed Investment Loans Harder To Get?
Not necessarily. In my experience, the challenge isn’t usually income. It’s documentation.
Many business owners earn excellent incomes but fail to present their financial position clearly.
When financial records are organised and lender selection is appropriate, approval can be surprisingly straightforward.
The key is working with lenders that genuinely understand self-employed income structures.
What Interest Rates Do Self-Employed Borrowers Pay?
Interest rates for self-employed investment loans can vary depending on the type of loan you choose, the documentation you provide, your credit score, the type of property being purchased, and the loan-to-value ratio (LVR) of your application.
Full Doc borrowers often access rates similar to PAYG applicants.
Low Doc and specialist borrowers may pay slightly higher rates to compensate for increased lender risk.
Can Self-Employed People Get Multiple Investment Loans?
Yes. Many self-employed investors build substantial property portfolios.
Lenders assess:
- -Existing property debt
- -Rental income
- -Business income
- -Overall servicing position
Strong financial management and strategic lender selection can support ongoing portfolio growth.
Frequently Asked Questions About Self-Employed Investment Loans
Can a sole trader get an investment property loan?
Yes. Sole traders can obtain investment loans through both major banks and specialist lenders, provided they can demonstrate sufficient income and business stability.
Can self-employed people get a mortgage for an investment property?
Absolutely. Self-employed borrowers can qualify for investment mortgages using Full Doc, Low Doc, or Alt Doc lending options.
Which bank is best for self-employed investment loans?
There is no single best lender. Commonwealth Bank, Westpac, NAB, ANZ, Macquarie, Pepper Money, Liberty, and Resimac all have different strengths depending on your circumstances.
How many years of tax returns do lenders need?
Most lenders prefer two years of tax returns. However, some lenders may accept one year of financials or alternative income verification methods.
Can I get an investment home loan without tax returns?
Yes. Some Low Doc lenders accept BAS statements, accountant declarations, business bank statements, or alternative documentation.
Can newly self-employed borrowers get investment loans?
Yes. Certain lenders will consider applicants with as little as 12 months of self-employment if other criteria are strong.
Self-Employed Investment Loans Are More Accessible Than Ever
Being self-employed should not stop you from building wealth through property. Whether you’re a contractor, consultant, sole trader, company director, medical professional, tradie, or business owner, there are now specialist investment loan solutions tailored to your circumstances.
The biggest mistake many borrowers make is assuming one lender’s decision reflects the entire market. It doesn’t.
Different lenders assess self-employed income differently, which means comparing options can dramatically improve your chances of approval and potentially save thousands in interest over the life of your loan.
Before applying, compare lenders carefully, understand your borrowing power, and choose a loan structure that aligns with your investment goals.
Ready to see how much you could borrow?
Compare self-employed investment loan rates, calculate repayments, and explore your borrowing capacity using the tools available at RateBuster. Our home loan comparison tools and mortgage calculators can help you find competitive investment loan options tailored to self-employed Australians.
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