What documents should a business owner prepare for a home loan?

If you run your own business, you already juggle plenty of paperwork. The good news is that a lot of what lenders ask for is stuff you (or your accountant) already have. Getting it together early can save time and stress.

Below is a general guide. The exact documents will depend on your situation, your business structure and the lender, so treat this as a starting point rather than a final list.

Personal documents

Most lenders will ask for:

• Identification — such as a driver's licence, passport or Medicare card
• Recent bank statements for your everyday and savings accounts
• Details of existing debts — home loans, car loans, credit cards, buy now pay later and personal loans
• Your assets — property, vehicles, superannuation and savings
• Living expenses — lenders will ask about your regular household spending

Business income documents

For self-employed borrowers, lenders commonly ask for some combination of:

• Personal tax returns for recent years
• ATO notices of assessment that match those returns
• Business tax returns (for companies, trusts or partnerships)
• Business financial statements — profit and loss and balance sheet
• Recent business activity statements (BAS)
• Business bank statements
• Your ABN and GST registration details

Some lenders may also ask for an accountant's letter, interim financials for the current year or details of any ATO payment arrangements.

If you're considering alternative documentation

If your tax returns aren't up to date or don't reflect your current trading, some lenders offer options that use other evidence, such as BAS, business bank statements or an accountant's declaration. These options are not available from every lender, and each has its own requirements, so it's worth discussing whether this approach suits you.

A few tips

1. Check your returns are lodged. Lenders generally want the most recent financial year where possible.
2. Make sure the numbers line up. Lenders often cross-check tax returns, notices of assessment and financials.
3. Explain anything unusual. A big drop or jump in income? A one-off expense? A short explanation can help.
4. Be upfront about tax debts or payment plans. It's better discussed early.
5. Don't email documents to everyone. Wait until you know what's needed, and use a secure method.

Keep it secure

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