Can I get a home loan with only one year of ABN?

Lenders want to see that a business survives its first year and that the income is not a one-off. Two years of returns lets them average or take the lower year. With one year they are relying on a shorter track record, so they compensate by asking for more evidence of the same period and by capping the LVR.

The most common path is one full financial year of tax return plus the current year's BAS to show it is continuing. Where no return has been lodged yet, six to twelve months of BAS is used, with the lender applying an industry margin to turnover or accepting an accountant's projection. Borrowers who moved from PAYG employment into contracting or their own business in the same trade are treated more favourably, because the skill and the customer base existed before the ABN did. A tradesperson who worked for a builder for ten years and went out on their own last year is a much easier file than a career change.

Expect a maximum of 80 per cent LVR at most lenders accepting one year, with a few going to 90 per cent under LMI for strong files. Some lenders require GST registration for at least twelve months. Income is usually assessed conservatively, either on the lower of the return and the BAS-based figure, or with a haircut on growth. Cash out for anything other than the purchase is often restricted.

A low doc loan with a specialist lender may accept six months of ABN and BAS or bank statements at a lower LVR and higher rate. Alternatively, a guarantor or a larger deposit can offset the short history. And if the business is genuinely brand new, waiting for the first tax return is often the cheapest path.