Make Your Self-Employed Numbers Bankable in Green Square

Self-employed in Green Square with chaotic accounts can still get a strong home loan if you turn those numbers into a clear, bankable story that matches how lenders think. That means: clean, reconciled financials for at least two years, sensible explanations for any dips, and a structure that separates business, personal and investment debt so your real income is easy to see.

This guide shows exactly what to fix this week so a lender – or a Green Square–focused broker – can move your purchase or refinance forward.

Tidy, separated business and personal accounts are the foundation of a bankable story.

How banks read a self-employed borrower in Green Square

What lenders are actually looking for

For small business owners in Zetland, Waterloo and Rosebery, banks care less about your ABN label and more about three things:

1. Stability – 2+ years in business, no big unexplained income crashes.
2. Serviceability – can you afford the loan at your rate plus ~3% (APRA buffer)?
3. Clean compliance – lodged tax returns, ATO under control, no mystery debts.

Most mainstream lenders will:

• Start with your taxable income (not turnover).
• Average the last two years’ income, or use the lower year.
• Add back some items (e.g. depreciation, extra super) if justified.

For a deeper dive into complex income policy, see /insights/complex-income-self-employed-professional-borrowers-green-square.

Worked example: turning messy numbers into income the bank accepts

Assume you run a design studio in Green Square and want an $850,000 apartment with a $680,000 loan.

• FY23 taxable income: $120,000 (after lots of one-off equipment write-offs)
• FY24 taxable income: $165,000
• Depreciation FY24: $18,000
• Extra super contributions FY24: $7,000

A lender might calculate like this:

• Base income: average of FY23 and FY24 = $142,500
• Add-backs (case-by-case): up to $25,000 (depreciation + extra super)
• Assessed income could be around $160,000–$167,500

On P&I, 30 years, at an illustrative 6.25% (tested at 9.25% with buffer), that income may support roughly $650,000–$700,000 in total lending, depending on your living costs and other debts.

The gap between $142,500 and $167,500 of assessed income often decides whether your purchase or refinance works.

Step 1 this week: tame the chaos in your numbers

Clean up your accounts so a credit assessor can follow them

You don’t need “perfect” books. You need consistent and explainable books.

Focus your next 3–5 evenings on:

• Separating accounts
  • One business account and card for all business costs.
  • One personal account for drawings and living costs.
• Reconciling 24 months of transactions so your P&L matches your bank statements.
• Tagging one-offs – fit-out, equipment, legal fees. These may be add-backs.
• Listing all debts – business loans, car leases, credit cards, ATO payment plans.

This is exactly the groundwork lenders expect (see the basics in /insights/small-business-home-loan-basics-eligibility).

Build a simple “bankable story” summary

Draft a one-page note in plain English:

• What your business does and where (e.g. “café in Zetland with local office workers and residents as core customers”).
• How long you’ve traded and any major changes (relocation, new product line).
• Why income moved up or down in each of the last two years.
• Any temporary hits (COVID, renovations, once-off write-offs) that are now resolved.

Lenders don’t like surprises. A clear summary upfront makes credit assessors more comfortable approving the deal.