Whether you are on wages, an ABN subcontractor or running your own crew decides how a lender reads your income. The paperwork matters as much as what you earn.
A tradie on wages is assessed like any employee, from payslips. An ABN tradie, even one working for a single builder, is usually assessed as self-employed, from tax returns and notices of assessment, so the income is what remains after expenses.
Cash jobs that are not declared cannot be counted, and finance on a ute or tools reduces borrowing power.
Part of the employment and income home loans guide.
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What moves the number
Choose any that apply. Each shows roughly how much it changes the figure, the way a lender’s assessment would.
is an indicative borrowing figure at today’s typical rates. Lenders typically count around 80% of rental income, which is why an investment purchase can lift your number, your real figure comes from a proper assessment.
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The way you are paid decides the documents and the figure a lender uses.
| Wages (PAYG) | Payslips and an employer letter. Past probation is ideal. |
|---|---|
| ABN subcontractor | Tax returns and notices of assessment. One to two years. |
| Own business with staff | Business and personal tax returns. Two years. |
| Apprentice | Current wages. Some lenders consider set pay steps. |
Lender policies differ, especially on one year of ABN income.
Lenders start from your taxable income, then some add back items that are not real cash costs, such as depreciation on equipment, interest on loans being refinanced, and one-off expenses. That can lift the figure noticeably.
If you have just switched from wages to an ABN in the same trade, some lenders will consider one year of ABN income; see one year of self-employed income.
Repayments on a ute, trailer or tools count as commitments, whether they are a car loan, chattel mortgage or lease. Every $100 a month reduces a borrowing limit by roughly $12,400 at a 9% assessment rate.
If a vehicle loan is nearly finished, paying it out before you apply can help. Business vehicles are often financed through asset finance, which a lender still counts.
Lenders can only count income that is declared. If your recent tax returns are not lodged, a low doc or alternative documentation loan using BAS and bank statements may be an option, usually with a larger deposit and a higher rate.
The low doc home loans page explains the trade-offs.
Yes, usually assessed as self-employed from tax returns. Some lenders accept one year of ABN income in the same trade.
After expenses, from your taxable income, with some add-backs such as depreciation.
Yes. The repayment counts as a commitment, reducing what you can borrow.
Yes, on current wages, though borrowing power is limited. A guarantor or a partner’s income often helps.
Lodge them if you can. Otherwise a low doc loan using BAS may work, at a higher cost.
See self-employed lending and the document checklist.
Charles can read your tax returns the way a lender will, find add-backs, and match you with lenders that understand trade income.
Prefer a callback?Charles calls back within one business day. No documents needed yet.
General information only, not credit, tax or legal advice. Lender policies change and differ between lenders, and any loan is subject to the lender’s assessment.
