As we approach the end of the financial year, many self-employed Australians are finalising what could be their strongest year of business performance in FY2026.
For those looking to enter the property market for the first time, a common question arises:
Can You Use Just One Year of Self-Employed Income When Applying Under a 5% Deposit Scheme?
The short answer is: in some cases, yes — subject to lender and scheme eligibility.
The Traditional View: Two Years of Financials
Most lenders typically prefer to see two years of tax returns for self-employed borrowers. This is used to demonstrate consistency and sustainability of income.
Because of this, many business owners assume they need to wait at least two full financial years before they can apply for a home loan.
However, this is not always the case.
When One Year May Be Considered
Under certain lending policies and government-backed schemes, some lenders may consider just one year of self-employed income, particularly when:
- The most recent financial year shows strong, stable income
- The business has demonstrated clear growth or consistency
- The borrower meets the requirements of a 5% deposit scheme
- Other aspects of the application are strong (such as credit history and savings)
This can be especially relevant for first home buyers who are self-employed and have recently had a strong FY2026.
Why EOFY Matters
The end of the financial year is a key milestone for self-employed borrowers.
Once your FY2026 financials are completed, they may provide a more accurate and up-to-date picture of your income position. In some cases, this updated information can improve borrowing capacity or open up eligibility that wasn’t previously available.
If this has been a strong year for your business, it may be worth reviewing your position once your tax returns and financial statements are finalised.
What This Could Mean for First Home Buyers
For eligible self-employed borrowers, using one year of income under a 5% deposit scheme could mean:
- Entering the property market sooner
- Avoiding the need to wait for a second financial year
- Taking advantage of strong recent business performance
- Potentially securing a home with a lower deposit requirement without paying lender’s mortgage insurance (LMI).
Final Thoughts
Every lender assesses self-employed income differently, and scheme eligibility criteria apply. There is no one-size-fits-all approach, especially when it comes to self-employed income.
However, if you’ve had a strong FY2026 and are considering buying your first home, it may be worth reviewing your options sooner rather than later.
EOFY is not just about tax — it can also be a strategic opportunity to plan your next property move.
If you’re self-employed and want to understand what you may be eligible for, it’s a good idea to seek personalised advice based on your circumstances.
General information only. Lending criteria, government scheme rules, and eligibility requirements apply. All applications are subject to lender assessment.