If you're a sole trader living or working in Sydney’s North Shore, getting a home loan can feel like hitting a wall—especially if lenders don’t fully understand your income. But don’t worry, you’re not alone. With the right strategy and guidance, home loans for sole traders North Shore Sydney are absolutely within reach.

In this article, we’ll walk you through how to get loan-ready, what lenders are really looking for, and how to use your self-employed status to your advantage in 2025, and with North Shore house prices now averaging $2.3 million in 2025 (source), it’s critical to prepare your application with care.



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Why Are Home Loans Harder for Sole Traders?

Lenders often view sole traders as higher risk due to variable income, lack of employer support, and complex financial structures. But with the right documents, you can still get approved.

• Inconsistent income across financial years
• No employer to guarantee stability
• Harder to verify income with standard documents
  
  

What Documents Do You Need as a Sole Trader?

This is where you really need to be organised. Lenders will look at your recent financials to understand the stability and strength of your business.

• Two years of business and personal tax returns
• BAS statements
• ATO Notice of Assessment
• Profit and loss statement
• Accountant’s letter verifying income
  
  
  

How Can You Improve Your Borrowing Power?

As a sole trader, the more income stability you can show, the better. Lenders want to see that you’re earning consistently and managing your expenses well.

• Reduce debts and credit card limits
• Show regular income in your bank account
• Keep personal and business finances separate
• Lodge BAS and tax returns on time
• Build a steady savings record
  
  
  

What Loan Options Are Available to Sole Traders?

You’ll generally have access to all the usual home loan types. However, some lenders offer tailored solutions for self-employed borrowers, including low-doc and alt-doc loans.

• Full-doc loans
• Alt-doc loans using BAS or bank statements
• Low-doc options for newer businesses
• Offset accounts, redraw facilities, fixed/variable splits
  
  
  

Can You Qualify for a Loan With Just One Year of Income?

Some lenders will accept one year of financials—especially if you’ve been in the same industry before going out on your own. This can be a game-changer if you’re early in your sole trader journey.

• At least 12 months in business
• Same industry experience
• Clean credit history
• Solid income in the first year
  
  
  

Do Government Grants Apply to Sole Traders?

Yes. Your employment type doesn’t prevent you from accessing government support. If you're a first-time buyer or buying a new property, you may be eligible for assistance.

• First Home Owner Grant (NSW): $10,000
• First Home Guarantee: 5% deposit, no LMI
• Stamp duty concessions available in NSW
• Visit NHFIC.gov.au for eligibility
  
  
  

What Deposit Do You Need as a Sole Trader?

Ideally, a 20% deposit helps avoid Lenders Mortgage Insurance (LMI), but many lenders will accept smaller deposits from sole traders if the rest of your application is strong.

• 20% to avoid LMI
• 10% with LMI accepted
• 5% with First Home Guarantee (if eligible)
• Family guarantees or gifted deposits may help
  
  
  

Which Suburbs Are Popular for Sole Traders on the North Shore?

As a sole trader, you may be looking for a work-life balance: peaceful neighbourhoods, access to clients, or even space for a home office. The North Shore delivers all of that.

• Lane Cove – central and quiet
• Hornsby – more affordable entry
• Chatswood – close to co-working and services
• Turramurra – family-friendly, peaceful
• St Leonards – convenient and close to health and tech sectors
  
  
  

What Are Common Mistakes Sole Traders Make When Applying?

Even with good income, small errors can cause delays or rejections. Avoid these common traps to keep your application on track.

• Mixing personal and business finances
• Delaying tax returns or BAS lodgements
• Taking out extra loans or credit
• Applying without a broker who understands sole trader lending

Why Should You Use a North Shore Mortgage Broker?

Applying as a sole trader is more complex - but that’s where we shine. As a local broker, we understand the North Shore property market and which lenders favour self-employed applicants.

• We understand self-employed lending policies
• We have access to alt-doc and flexible lenders
• We guide your application from start to finish
• We provide suburb-specific insights and lending support

Frequently Asked Questions (FAQs)

Can sole traders get home loans in North Shore Sydney?
Yes. You can get approved with the right documentation and by working with lenders who understand self-employed income.

What documents do lenders need from sole traders?
Generally, two years of tax returns, BAS, profit/loss statements, and an accountant's letter.

Can I get a loan with one year of income as a sole trader?
Yes, if you’ve been in the same industry and can show strong earnings with a clean credit file.

What is a low-doc loan and is it available to sole traders?
Low-doc loans use minimal paperwork like BAS or bank statements instead of full tax returns.

Can sole traders qualify for the First Home Guarantee?
Yes, if you meet income and property eligibility criteria.

Are interest rates higher for sole traders?
Not necessarily - if you have full documentation and good financials, you can access standard or even discounted rates.

How can Sabea Financial help sole traders with their loan?
We guide your loan strategy, prepare your documents, and match you with the right lender to get approved faster.

Summary: Ready to Buy as a Sole Trader on the North Shore?

If you're self-employed and ready to stop renting or scale up to your own home, the time to act is now. With Sydney’s North Shore market remaining strong in 2025, being a sole trader doesn’t need to be a barrier. It just requires the right strategy, the right paperwork, and the right people in your corner.

At Sabea Financial, we specialise in home loans for sole traders North Shore Sydney. Whether you're a freelance creative, tradie, or solo business owner, we’ll walk you through every step of the lending process, ensuring your income and business history are presented in the best possible light.

📞 Call us on 1300 001 755
Or email us on info@sabea.com.au

Let’s help you find the perfect suburb - and the right loan to make it happen.