Business owners and company directors can borrow on full doc terms once the business has two years of lodged tax returns, and some lenders accept one. The key question is which income a lender counts: your wage or director’s fees, dividends and sometimes your share of the company’s profit with add-backs. Lenders differ on all three, so the same business can support very different loans.

What a lender may count for a company director
Income How lenders usually treat it
Wage or director’s fees Counted from your personal tax return and notice of assessment
Dividends Counted when they show in your personal returns, often averaged over two years
Company profit kept in the business Some lenders add your share of after-tax profit; others ignore it
Add-backs Depreciation, interest on business loans being refinanced, one-off costs and extra super are often added back
Company debts you guarantee Counted as your commitments

Which documents will a lender ask for?

  • Personal tax returns and notices of assessment for the last one or two years.
  • Company tax returns and financial statements for the same years, so the lender can see profit, add-backs and any loans to you.
  • Business bank statements for recent months, and evidence the business is trading now.
  • ATO portal statements showing tax and BAS obligations are up to date or on a plan.

The self-employed document checklist sets these out in order.

Why do lenders read the same business differently?

Because company profit is not your income until it is paid to you. A lender that only counts wages and dividends sees the income you have drawn. A lender that also counts retained profit sees what the business could pay you. For a director who pays a modest wage and leaves profit in the company to grow it, that difference can be the whole deal. On our assumptions, a single applicant counted at $90,000 can borrow about $370,000, and counted at $180,000 about $830,000.

Money the company lends you is a separate issue. Loans from a private company to its shareholders are subject to Division 7A tax rules, and lenders will ask about any such loan in the financial statements.

A real client file: buying with business income

A real Links client file: a business owner and their salaried partner buying a $1,050,000 home. The business has traded for four years; its profit before personal tax was $155,000 in the earlier year and $180,000 in the latest lodged year. The partner earns $75,000.

Funding the purchase
Item Amount
Purchase price $1,050,000
Deposit (20%) $210,000
Purchase cost allowance $50,000
Savings used ($280,000 saved) $260,000
Savings kept as a buffer $20,000
Home loan (80%) $840,000

The lender’s choice of year changes the borrowing ceiling on our assumptions (6% rate, assessed at 9%, no other debts): using the lower, earlier year, the household passes to about $1,062,000; using the average, about $1,129,000; using the latest year, about $1,197,000. All three clear the $840,000 needed, so here the work is in the evidence: financial statements that match the returns, no unexplained debts, and tax obligations up to date. The borrowing ceilings are our estimates; the file details are as recorded, and the full file is on the real client cases page.

What if the business is newer than two years?

Some lenders accept one year of returns when you have worked in the same industry before. Others offer low doc or alt doc loans using BAS or an accountant’s letter. See low doc home loans and the worked example of a borrower with one year of financials.

Should you borrow in your own name or the company’s?

For your own home, almost always your own name. Buying through a company or trust is mostly for investment and changes tax, land tax and lending options. The guide to trust and company home loans covers that route.

Questions people ask

Do lenders count dividends as income?

Usually, when they show in your personal tax returns. Many lenders average them over two years, because dividends can vary.

Can I use retained company profit to borrow more?

With some lenders, yes, usually limited to your share and supported by the company’s financial statements. Others will not count it.

Does a director’s guarantee on a business loan affect my home loan?

Yes. Lenders count guaranteed business debts as a commitment, so list them up front.

Charles Touma reads your company and personal returns together, then matches the business to the lenders that count its income best. A free 30-minute call covers your structure and what you could borrow. General information only, not credit or tax advice; lender policies change, and your accountant should confirm how your income is presented.

Sources: Westpac, broker credit policy summary; ATO, private company benefits (Division 7A); ATO, owning shares and dividends, checked 20 October 2026.

General information only, not credit, legal or tax advice. Your situation is assessed properly before any recommendation. Government scheme details change; figures are current at the time of writing.