Can You Get a Home Loan Without Two Years of Tax Returns?

If you're self-employed and thinking about buying or building a home, you've probably heard that you’ll need two full years of tax returns before any lender will take you seriously. But the reality? That’s not always the case. Whether you’re working with a Gold Coast Mortgage Broker, a Brisbane Mortgage Broker, or a specialist Mortgage Broker for Sole Traders, there are lenders out there who understand your income isn’t always measured in traditional terms and who are willing to assess your borrowing potential with more flexibility.

Some of the most financially capable clients we work with are business owners or contractors who have recently started their own ventures. From Sunshine Coast creatives to high-earning consultants in Brisbane, we see the same pattern over and over: strong income, solid savings, and growing businesses, yet they’re told they don’t qualify simply because they haven’t been self-employed “long enough.” The truth is, with the right Sunshine Coast Mortgage Broker guiding the way, you may be able to get approved with just one year of tax returns — and avoid unnecessary costs or delays in the process.

So, Do You Need Two Years of Tax Returns?

No, not always.

While some traditional banks still require two full years of financials, there’s a growing number of prime and near-prime lenders that will consider your application with just one year of tax returns or even alternative documentation, depending on the strength of your file.

This is especially true if:

• You’ve recently transitioned from PAYG to contracting or sole trading

• You have prior experience in your field

• Your income is strong and consistent

• You’ve been trading under your ABN for 12 months or more

• Your overall household finances are solid (e.g., equity, savings, or partner income)

Real Case Study: Aisha and Eric's $2.5 Million Approval

Let’s break this down with a real example, one that shows just how much of a difference the right advice can make.

Aisha, a highly experienced project manager, recently left her salaried role to start contracting under her own Australian Business Number (ABN). She was earning around $250,000 per year from day one, with secured contracts and a strong pipeline of work.

Her husband, Eric, is a qualified accountant with stable income. Together, they have four kids, two existing mortgages, and big plans: a knockdown and rebuild to create their forever home. The loan they needed? An additional $1 million, bringing their total exposure to $2.5 million.

When they first spoke to a broker, they were told Aisha’s 12-month ABN history was too short. The only option on the table was a low-doc loan with rates above 8%. That would’ve meant:

• A huge increase in interest payments across their entire loan

• An unnecessary blow to their monthly cash flow

• A potential delay or loss of momentum on their dream build

However, a self-employed friend who had worked with us suggested that they reach out.

The Difference: Smart Strategy and Lender Knowledge

When Aisha and Eric came to us, we took the time to look beyond the surface.

Yes, Aisha had only 12 months of ABN history, but she also had:

• Over 10 years of experience in her industry

• High, predictable income with formal contracts

• A partner with strong PAYG income and financial literacy

• Equity in existing properties

• A clear plan and timeline for their build

We worked through their numbers, mapped their scenario to the right lender, and structured their loan in a way that reduced risk for the bank while providing them with access to a competitive interest rate starting in the mid-5% range. Not only did they get approved, but they avoided over $50,000 in interest per year compared to the original advice.

That’s the power of knowing lender policy inside out, and building a file that helps lenders say “yes” instead of defaulting to “no.”

Why Many Brokers Get This Wrong

There is a common misconception in the industry that self-employed clients are “risky” or need to prove themselves for longer before qualifying. And while some cases do require more time or documentation, many don’t.

What makes the difference is:

• Understanding how each lender views self-employed income

• Knowing which documents can be used to verify earnings (e.g., BAS, contracts, business bank statements)

• Having the skill to tell a financial story that builds lender confidence

The wrong broker may take a one-size-fits-all approach and steer you toward low-doc loans with higher interest and less favourable terms. However, the right broker knows how to navigate the nuances and will advocate for your best possible outcome.

Key Takeaways for Self-Employed Borrowers

If you’re self-employed and looking to get a home loan:

• No, you don’t always need two full years of tax returns

• Yes, there are major lenders who will consider applicants with 12 months of ABN

• Yes, you can still access competitive interest rates if the file is structured well

• No, you don’t need to settle for a low-doc loan with inflated costs if your overall profile is strong

And most importantly:

• Working with a broker who knows this space is critical

We see time and time again that the difference between an approval and a rejection isn’t your income, it’s how that income is presented, and which lender it’s shown to.

Final Thoughts: Don’t Let Old Advice Hold You Back

The home loan space for self-employed Australians has evolved. Banks are slowly catching up to the fact that many high-quality borrowers are running their own businesses, contracting under an Australian Business Number (ABN), or working across multiple income streams.

If you're building your business and want your financial progress to be recognised by a lender, it’s not about ticking standard boxes, and it’s about finding the right path forward for your situation.

At I Know The Broker, we specialise in working with founders, contractors, creatives, consultants, and all kinds of self-employed professionals who are ready to own, or upgrade, their next home.

We understand the policies, we recognise the pace of your growth, and we know how to help you reach your destination without delay, without confusion, and without incurring tens of thousands of dollars in interest.

Let’s explore what’s possible based on your income, your experience, and your goals.