Self-Employed Mortgage Affordability Calculator
Estimate self-employed mortgage affordability using a 2-year Notice of Assessment average, add-backs and a stress-tested qualifying rate.
Estimated maximum mortgage
$185,625
Recognised annual income$41,250
Max loan from income multiple$185,625
This is an estimate only. Actual lending criteria, income-recognition rules and affordability stress tests vary by lender — speak to a mortgage broker or lender for a precise figure.
How lenders actually assess self-employed income for a mortgage
Mortgage lenders don't take a self-employed applicant's gross contract income at face value — they typically average two years of Notice of Assessment income, and because self-employed applicants legitimately minimize taxable income with deductions, that averaged figure is often lower than what actually lands in the bank each month.
What lenders typically look at
- A two-year average of your Notice of Assessment income, rather than a single year or your gross billings
- Add-backs for non-cash or one-time deductions that lenders may allow back into your qualifying income, subject to lender discretion
- A stress-tested qualifying rate applied to whatever affordability figure results, the same as for any other borrower
