SELF-EMPLOYMENT LENDING
Your accountant minimised your tax.
Now the bank says you don’t earn enough.
There is a way through this.
This is one of the most common frustrations we hear from self-employed borrowers. The same financial discipline that reduces your tax bill makes your income look lower to a lender. Your accountant did exactly the right thing. The bank is reading the numbers at face value. Neither of them is wrong. But the result is a gap, and navigating it takes a mortgage broker who understands how self-employed income actually works.
The Mortgage Guy specialises in home loans and lending for self-employed Kiwis: business owners, contractors, freelancers, and sole traders. We know which lenders are more flexible on income assessment, how to present your financials for the best possible outcome, and how to get you approved when a bank has already said no.
Why self-employed lending is
genuinely more complex.
The lending system was built for employees.
You’re not one.
New Zealand’s lending framework was designed around PAYE income. A payslip, a tax summary, a stable employer. Self-employed borrowers don’t fit that model, and lenders who aren’t set up for it will either decline the application or assess it in a way that dramatically undersells your actual financial position.
The structural problem
WHY THE NUMBERS LOOK WRONG ON PAPER
- Most banks require two full years of financial statements and assess your income based on net profit, after your accountant has done their job of minimising what’s taxable.
- That means depreciation, home office deductions, shareholder salary treatment, and legitimate business expenses all reduce the income figure the bank is looking at.
- A contractor earning $150,000 can appear to earn $90,000 on paper.
- A business owner on $200,000 can look like they’re barely covering their costs.
Add-backs
THE CORRECTION THAT VARIES BY LENDER
- Banks can add back non-cash items like depreciation, one-off costs, and certain deductions to arrive at a more accurate income figure.
- But the application of add-backs varies significantly between lenders.
- The same financial statements can produce an assessable income that differs by $30,000 to $50,000 depending on which lender is doing the calculation.
- That difference can be the gap between approved and declined.
The specific blockers we deal with most often:
- Less than two years of self-employment history. Most banks won’t consider applications from borrowers who’ve been in business fewer than two years, even if current income is strong. Some specialist lenders can work within 6 to 18 months of history in the right circumstances.
- Income inconsistency between years. Banks typically use the lower of two years, or an average, even when year two is lower due to a one-off cost or a deliberate business investment. We know how to document and contextualise this.
- Commission contractors counted as self-employed. A borrower with 70% of income from self-employment, even contracted to a single company paid fortnightly, may find the bank only counts the PAYE component for lending purposes. The right lender treats this differently.
- Mixed income structures. Shareholder salaries, drawings, dividends, and PAYE income from the same business are assessed differently by different lenders. Getting the income calculation right is where approvals are won or lost.
- IRD document requirements. There is no standard income certificate for self-employed people within IRD’s system. Banks sometimes request documentation that IRD doesn’t produce, creating unnecessary friction that a broker who knows the process can navigate.
Ashley is a qualified financial adviser. Self-employed income is one of the areas where regulated, expert guidance makes the clearest practical difference to the outcome.
WHO THIS IS FOR
This is for you if:
- You run a business, work as a contractor, or earn income as a freelancer or sole trader
- Your accountant has done a good job minimising your tax and your declared income looks lower than what you actually live on
- You’ve been self-employed for less than two years and a bank has already told you to come back later
- You were declined and not given a clear explanation of why or what to change
- Your income is a mix of PAYE and self-employment and the bank only counted part of it
- You earn well but the bank’s assessment makes it look like you don’t
- You want a mortgage broker who knows how to present self-employed income to lenders, not just process a standard application.
If your situation is non-standard in any way, and for self-employed
borrowers it almost always is, the right broker makes a material
difference to what you can access and what you pay.
How it works
Self-employed lending done properly.
01
Book a free
15-minute assessment
Tell us how you’re structured, how long you’ve been in business, and roughly what you’re trying to borrow. We’ll ask the right questions and give you an honest read on what’s possible before you put anything in writing.
02
We assess your income the way lenders do
We go through your financials with the same lens a credit team would use. We identify legitimate add-backs, flag any income inconsistencies that need contextualising, and work out which lender’s assessment methodology gives you the most accurate and favourable outcome. The gap between lenders on this can be significant.
03
We prepare and present your application
Self-employed applications live or die on how they’re packaged. We know what each lender wants to see, how to present mixed income structures clearly, and how to document your business context so credit teams can assess it confidently. A well-prepared application from a broker carries more weight than a self-submitted one.
04
We work
through it
with you
If one lender doesn’t work, we know who to try next, and why. If there’s a timing issue, like being three months short of two years, we map out exactly what you need to do and when to reapply for the best result. You always know where you stand.
Based in Christchurch, proudly helping Kiwis become homeowners across New Zealand.
From Cape Reinga to Bluff
What Our Homeowners Have To Say
Frequently Asked Questions
Can I get a mortgage if I’ve been self-employed for less than two years?
Possibly. Most major banks require two full years of financial history before considering a self-employed application. However, some specialist lenders will work within 6 to 18 months of history if the income is consistent, the business is established, and the application is structured correctly. We know which lenders have this flexibility and how to approach them. If timing is the issue, we’ll also map out exactly what you’d need and when to reapply for the strongest result.
My accountant minimised my tax. Does that hurt my mortgage application?
It can, and it’s one of the most common frustrations we hear. Banks assess income from your financial statements, so legitimate deductions, depreciation, and tax minimisation strategies that reduce taxable income also reduce the income figure lenders use. The solution is working with a mortgage broker who knows how to apply add-backs correctly, and which lenders apply them most generously. In some cases, the difference between lenders on the same financial statements is $30,000 to $50,000 in assessable income.
What documents do I need for a self-employed mortgage application?
Most lenders require two years of financial statements prepared by a chartered accountant, two years of IR3 or IR4 tax returns, three to six months of business bank statements, and details of any business debts or facilities. Some lenders also request GST returns. If your income includes both PAYE and self-employment components, we’ll need documentation covering both. We give you a precise list upfront so nothing delays your application.
I’m a contractor paid through a single company. Am I treated as self-employed?
It depends on your structure and how the bank assesses it. If you’re paid via PAYE by your contracting company, that income is typically treated as employment income. If you invoice as a sole trader or through your own company, lenders generally treat it as self-employed income. Where it gets complicated is mixed arrangements, where some income is PAYE and some is not. Some banks only count the PAYE component. Others take a broader view. Knowing which lender suits your structure is a large part of what we do.
What if the bank said no because of my income structure?
A decline on income structure grounds is one of the most common we see, and one of the most fixable. It usually means the bank couldn’t assess your income confidently using their standard methodology. A different lender with more flexible add-back policies, or one that specialises in self-employed applicants, often reaches a very different conclusion from the same financial statements. We repackage and represent your application where it’s most likely to succeed.
Our Financial Services
Your mortgage success is just the beginning.
As your financial advisers, we’re here for every lending decision you’ll face.
First-Home Buyer Coaching
Stop feeling lost in the process. We’ll transform your confusion into confidence with clear guidance from pre-approval through to settlement day. Together we’ll check your KiwiSaver eligibility, structure your deposit mix, and map out every step so you walk into open homes knowing exactly what you can afford and how to win.
You’ll go from “Is this even possible?” to “Here are my keys” with someone genuinely fighting for your success every step of the way.
Investment Property Lending Support
We help structure lending for property purchases beyond your first home. This includes understanding borrowing capacity, equity use, deposit structures, and how different loan setups can impact cash flow and future flexibility.
Our role is to support the lending side of your investment journey, so your finance is set up correctly and sustainably from day one.
Mortgage Warrant of Fitness
Think of it as an annual health check, but for your finances. Just like you’d service your car to keep it running smoothly, your mortgage needs regular attention to make sure it’s still the best fit for you.
A quick review can uncover savings or smarter strategies you might otherwise miss. It’s about keeping your mortgage in top condition, so you can focus on building your future, not stressing over repayments.
Asset Loans
From cars and boats to caravans, motorcycles, and work vehicles, asset finance helps you enjoy the things that make life easier and more rewarding. We’ll help you secure tailored lending with flexible terms, fair rates, and a smooth approval process that fits your lifestyle or business needs. So whether it’s hitting the road, the water, or the next job site, you can move forward with confidence knowing your finance is working for you.
Self-Employment Lending
Traditional banks often struggle to understand self-employed income, making it harder for business owners, contractors, and freelancers to secure finance. We partner with lenders who specialise in self-employed clients, helping present your income in the best light and structuring solutions that reflect the reality of running a business, so your hard work opens doors to homeownership, not roadblocks.
Construction & Business Loans
From building your dream home to tackling major renovations or fueling your business growth, the right loan structure makes all the difference. We help you secure tailored finance solutions that provide the flexibility, staged funding, and competitive rates you need. So whether it’s a new build, an upgrade, or expanding your business, you’ve got the support to bring your plans to life.
Refinancing & Top-Ups
Whether you’re looking to secure a better rate, reduce repayments, or unlock equity for renovations, investments, or life’s big opportunities, refinancing and top-ups can give you more flexibility and control. We’ll review your current loan, compare options across lenders, and structure a solution that supports your goals. So your mortgage works harder for you, not the other way around.
Ready to Turn your Dream into Reality?
Stop wondering “what if” and start planning “when.”
Get the straight answers you need to move forward with confidence.
Book Your Complimentary 15-Minute Assessment.
Find out what you can actually borrow.
No paperwork, no pressure, just clarity.