Last updated: July 2026
Buying Your First Home When Self-Employed in 2026
Self-employed Australians qualify for every major first home buyer scheme. The FHSS, FHBG, Help to Buy, state grants, and stamp duty concessions all apply to sole traders, freelancers, contractors, and business owners. The main challenge is not scheme eligibility but getting a mortgage approved, since lenders assess self-employed income differently. Here is how to navigate both.
Every Scheme Is Available to You
None of the major government schemes exclude self-employed buyers. Your employment type does not affect eligibility for:
FHSS
Up to $15,000 per year and $50,000 total in voluntary super contributions. Self-employed buyers use personal deductible contributions instead of salary sacrifice.
FHBG
No income cap, unlimited places. Buy with 5% deposit and government guarantees 15%. You own 100% of the property.
Help to Buy
Income cap $103,000 single / $165,000 couple based on your ATO Notice of Assessment. Government buys up to 40% equity (new) or 30% (existing). Only 2% deposit required.
FHOG
State grants from $10,000 to $50,000 for new builds. Available regardless of employment type.
Stamp duty concessions
Full exemptions or reductions based on property price and state. No employment-type restrictions.
The Mortgage Challenge for Self-Employed Buyers
While schemes treat you the same as everyone else, lenders do not. Self-employed borrowers face additional scrutiny because your income is less predictable than a PAYG salary. Here is what most lenders require:
- Two years of tax returns (personal and business) with matching ATO Notices of Assessment
- Net profit is assessed, not gross revenue. Lenders look at your taxable income after business deductions. If you have been aggressive with deductions to reduce tax, your assessable income may be lower than expected.
- Declining income is a red flag. If your income has dropped year-on-year, many lenders will use the lower figure. Stable or growing income over two years is ideal.
- ABN registration history matters. Most lenders want to see your ABN has been active for at least two years. Some specialist lenders accept one year with strong financials.
Preparing Your Finances: Step by Step
Start preparing at least 12 to 18 months before you plan to apply for a mortgage.
Lodge your tax returns on time
Lenders need your most recent two years of tax returns with ATO Notices of Assessment. If your returns are overdue, lodge them immediately. Late lodgements raise concerns for lenders.
Review your deductions strategy
High deductions reduce your taxable income, which reduces your borrowing capacity. In the two years before buying, consider whether some deductions could be deferred. Talk to your accountant about balancing tax efficiency with borrowing power.
Separate personal and business finances
Use separate bank accounts for personal and business spending. Lenders will review your personal accounts for living expenses and your business accounts for income stability.
Build genuine savings
Lenders want to see a consistent savings pattern in your personal account, not just a lump sum transferred from a business account. Three to six months of regular savings deposits helps demonstrate financial discipline.
Reduce personal debts
Pay down credit cards, personal loans, and close unused credit facilities. Every dollar of existing debt reduces how much you can borrow.
Engage a mortgage broker early
A broker experienced with self-employed borrowers knows which lenders are more flexible on documentation and income assessment. They can also tell you how much you are likely to borrow before you start looking at properties.
FHSS for Self-Employed Buyers
PAYG employees use salary sacrifice to contribute to the FHSS. Self-employed buyers use personal deductible contributions instead. The tax benefit works the same way:
- Contribute up to $15,000 per financial year to your super fund as a personal contribution
- Lodge a Notice of Intent to Claim with your super fund before submitting your tax return
- Claim the deduction in your tax return, reducing your taxable income
- The contribution is taxed at 15% inside super, saving you the difference between your marginal rate and 15%
Be aware that FHSS contributions count towards your $32,500 annual concessional contributions cap (including any employer super guarantee). If you do not receive employer super, you have more room for FHSS contributions.
Use the FHSS calculator to estimate your tax savings
Help to Buy Income Assessment
Help to Buy uses the taxable income from your most recent ATO Notice of Assessment to check eligibility. For self-employed applicants, this means your net business income after deductions. The caps are:
Single Applicant
Taxable income under $103,000
Couple / Single Parent
Combined taxable income under $165,000
If your income fluctuates between years, a lower-income year could make you eligible. However, lower income also reduces your borrowing capacity with lenders, so there is a balance to strike.
Check your Help to Buy eligibility with the calculator
Mortgage Broker Tips for Self-Employed Buyers
A good mortgage broker can make a significant difference for self-employed applicants. Here is what to discuss:
- Low-doc loans: Some lenders offer low-documentation loans that use BAS statements or accountant declarations instead of full tax returns. Rates are typically higher, but they can be an option if your tax returns do not reflect your current income.
- Add-backs: Some lenders will add back certain business expenses (like depreciation or one-off costs) to your assessed income. Your broker can identify which lenders do this and how it affects your borrowing capacity.
- Company or trust structures: If you operate through a company or trust, income assessment becomes more complex. A broker experienced with these structures will know which lenders accept trust distributions or company dividends as income.
Read our guide to mortgage pre-approval
See which schemes you qualify for
Answer a few questions and get a personalised strategy showing every scheme you can stack, how much you could save, and what to do first.
Start the free calculator2 minutes. No sign-up required.
Frequently Asked Questions
Can self-employed people use the First Home Super Saver Scheme?
Yes. Self-employed people can make personal deductible contributions to super and claim them under the FHSS. You contribute up to $15,000 per financial year and $50,000 in total, then lodge a determination request and release request with the ATO when you are ready to buy.
How many years of tax returns do I need for a home loan?
Most lenders require two years of personal and business tax returns, along with ATO Notices of Assessment. Some lenders accept one year if you can show a strong financial position. A mortgage broker experienced with self-employed borrowers can identify the best lender for your situation.
Does the FHBG have an income cap for self-employed buyers?
No. Since October 2025, the FHBG has no income cap for any buyer. Self-employed buyers are eligible on the same terms as PAYG employees. You need a 5% deposit and the property must be within the price cap for your state and region.
How is income assessed for Help to Buy if I am self-employed?
Help to Buy uses your taxable income from your most recent ATO Notice of Assessment. For self-employed applicants, this is your net business income after deductions. The cap is $103,000 for singles and $165,000 for couples. If your taxable income fluctuates, a lower-income year may help you qualify.
Sources:
ATO: First Home Super Saver Scheme | Housing Australia: First Home Guarantee | Housing Australia: Help to Buy
Disclaimer: This information is general in nature and does not constitute financial, legal, or tax advice. Calculations are estimates only and may not reflect your exact circumstances. Eligibility criteria and dollar amounts may change without notice. Always verify with the relevant government authority, your mortgage broker, or a licensed financial adviser before making decisions.