Home loans for asset-rich, low-taxable-income borrowers

Key Takeaway

Australian borrowers who are asset-rich but report low taxable income can still obtain home loans by evidencing real cashflow, using conservative loan-to-value ratios (often ≤60–70%), and selecting lenders that accept alternative documentation and investment income. With 28.2% of mortgage holders already ‘At Risk’ of stress, keeping repayments under roughly 30–35% of after-tax income at rates 3% higher than today is crucial. The key actionable step is to build a one-page income and asset snapshot that a specialist broker can translate into a lender-ready proposal.

You can often still get a home loan when your taxable income looks low, provided you can prove real cashflow, keep your loan size conservative, and pick lenders who understand complex assets and structures.

In practice, that means: (1) mapping all income sources (including investment and trust income), (2) using assets to either reduce the loan or demonstrate future income, and (3) choosing lenders who go beyond a simple PAYG payslip test.

Personal balance sheet and cashflow summary for an asset-rich borrower. Start with a clear snapshot of your real income, assets and liabilities.

Step 1: Map your real income, not just your tax return

Lenders don’t lend against wealth alone.

They lend against income that can service repayments at today’s rates plus the APRA 3% buffer.

Start by building a one‑page cashflow snapshot:

Business income (company, trust, sole trader)
Dividends and distributions actually paid to you
Rental income (current and realistic future rent)
Franked dividends, term deposits, bonds
Pension income or annuities
Irregular but reliable cashflows (e.g. annual bonuses, partnership drawings)

Then separate:

Taxable income – what appears on your notice of assessment
Serviceable income – what a smart lender may accept with the right evidence

For example, if your company earns $400,000 but you only draw a $90,000 salary and retain profits, your taxable income is $90,000.

But with accountant letters, company financials and bank statements, some lenders may treat part of retained profits or director’s fees as accessible income.

If your situation involves layered entities, this is where a specialist broker who works with complex income (see the case‑style approach in /insights/self-employed-professional-buys-rose-bay-complex-income) becomes critical.

Step 2: Turn your balance sheet into borrowing power

High assets help in three ways: 1. Lower LVR, lower risk If your loan is 50–60% of the property value instead of 80–90%, more lenders are willing to work with complex income. 2. Documented investment income Dividends, interest, and rental income can count if you can show history (e.g. 6–24 months’ statements) and sustainability. 3. Asset restructuring Sometimes slightly changing how you hold or draw from assets unlocks serviceability. ### Options to discuss with your accountant and broker - Increasing your salary or drawings from a company or trust (while…

Frequently asked questions

Can I get a mortgage if my taxable income is low but I have high assets?▾

Yes, many lenders will consider a loan if you can prove strong overall cashflow and keep your loan-to-value ratio relatively low. They may use investment income, rental income, and business profits in addition to your taxable income. The key is clear documentation and a lender who manually assesses complex cases.

How do lenders treat trust and investment income for home loans?▾

Lenders may include trust distributions, dividends and other investment income if they can see a consistent pattern and expect it to continue. That usually means two years of tax returns, distribution statements and bank evidence. Some lenders also consider retained profits in a company where you’re the main director and shareholder, with accountant support.

Is a low-doc or alt-doc home loan a good idea if I minimise tax?▾

Alt-doc loans can help when your tax returns don’t reflect your true earning capacity, using BAS, bank statements or accountant letters instead. They typically charge higher rates and may require larger deposits. They work best as a bridge while you adjust your income and structures so you can refinance to a mainstream lender later.

Speak with a specialist advisor

Confidential consultation, bespoke advice for your situation.

How Asset‑Rich, Low‑Taxable‑Income Borrowers Can Still Get a Home Loan