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

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.

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.