Self-employed and contract engineers
You went out on your own to do better engineering. Your finance should keep up.
Day rates, invoices and company financials need a different assessment method from a salary. I show the working, then match the position to selected lenders whose current criteria fit.
Civil · Structural · Geotechnical · Mechanical · Electrical · Mining & resources · Chemical & process · Building services · Software · Environmental · Every engineering discipline
Contracting through an ABN or your own Pty Ltd
Your day rate can be strong while your borrowing power looks weak. Some lenders expect two years of tax returns. Selected lenders may accept 12 months or less when you have a clear history in the same engineering field, subject to lender criteria and current policy.
The current contract, invoices, BAS, tax returns and an accountant's letter can all matter. Timing matters too: applying after a documented contract extension may materially improve the evidence available to a lender.
Consultants and sole practitioners
Fee proposals, utilisation and lumpy invoicing rarely fit a payslip assessment. I reconcile taxable income with recurring income a selected lender may assess, showing each assumption and valid add-back rather than relying on the bottom line alone.
Current and prior contracts
Invoices, BAS and tax returns
Charge-out rate and utilisation
WIP, pipeline and debtor timing
Going out on your own or buying in
You may be moving from associate to principal, starting a consultancy, or buying into an engineering practice. Personal capacity is often strongest while PAYG income still exists on paper, so personal borrowing should be checked before you resign.
Home exposure should be a defined load, with limits and release conditions considered before submission. I do not provide tax or structuring advice. I work alongside your accountant on the position already built.
Common assumptions
What you've been told, and why it's wrong
| Told | Why it's wrong |
|---|---|
| You need two years of financials. | Some lenders consider one year plus contracts, BAS and industry history. Eligibility is subject to lender criteria and policy change. |
| Contract income is too unstable for a home loan. | Selected lenders assess eligible engineers on a current day rate and contract when the supporting history is clear. |
| Self-employed borrowers always pay more. | Pricing depends on the facility, security, credit position and selected lender. Self-employment alone does not set the outcome. |
| The firm's WIP and pipeline don't count. | They do not replace trading history, but documented WIP and signed fee proposals can support the wider credit position. |
| Equipment finance won't affect your home loan. | It can materially change personal capacity, so vehicle, plant and equipment commitments should be sequenced with the home loan. |
| Get the business loan sorted first, then worry about the house. | Personal borrowing can be stronger before PAYG income ends. The order should be checked before you resign. |
Resource
Borrowing Power Calculator
Your borrowing power from taxable income, current tax rates and a 2.5% buffer, with every step of the working shown.
Open this resourceFAQ
Questions about this position
If your accountant wants to talk through the numbers first, I'm happy to.
General information only. It does not consider your personal circumstances. Eligibility, loan-to-value limits, professions covered and lender policies vary and change. Subject to lender credit approval.
Put the real numbers in front of you.
I'll read the position, show the calculation and explain the trade-offs, no guesswork, no rework.