The gig economy is booming – and so is confusion when it comes to getting a home loan.
Whether you drive for Uber, sell art on Etsy, freelance as a designer, or have a side hustle consulting on weekends, you’re part of a growing group of Australians earning income outside the traditional 9 to 5. But when it comes to applying for a home loan, that extra income doesn’t always work in your favour – at least not without the right guidance.
As experienced mortgage brokers in Melbourne, we see it every day: people with great cash flow and solid side income getting knocked back by banks. Why? Because not all income is treated equally -and not all lenders are willing to work with the self-made.
Let’s break down how your side hustle could help – or hurt your next loan application, and what you can do to set yourself up for success.
Why Lenders Get Nervous About Side Hustle Income
Banks love stability. That’s why full-time salaried income is still the gold standard. But when it comes to gig work, freelance income, or self-employment, lenders get picky….fast.
Here’s why:
Inconsistent earnings month to month
Lack of PAYG tax records
Short trading history
Cash deposits or unverified transfers
Uncertainty over whether the income is sustainable
Even if your bank statements show healthy deposits from Uber or Upwork, without proper records, that income might not count at all in your borrowing assessment.
Common Mistakes That Can Lead to Loan Declines
Claiming high tax deductions to reduce taxable income (good for tax time, bad for borrowing power)
Mixing personal and business income in one account
No invoicing or record-keeping for cash jobs
Not declaring side income on tax returns (lenders can’t use it if the ATO doesn’t see it)
How to Make Your Side Hustle Work for You
Register it as a business (ABN)
Even if you’re a sole trader doing photography gigs once a week, make it official. Most lenders require two years of registered ABN history – although some will accept one.File your tax returns consistently
Having at least one full financial year of declared income (preferably two) is key to getting that income accepted.Keep a clean paper trail
Use a separate bank account for side hustle income. Keep invoices, records, and summaries – it all helps when it’s time to prove what you earn.Work with a specialist mortgage broker
Many Melbourne mortgage brokers – us included – know which lenders are side-hustle friendly. Some accept just one year of financials. Others use alternative methods like BAS statements or bank deposits.
Lenders Who Are More Side-Hustle Friendly
While we won’t name them all here (each has conditions), we regularly work with banks and lenders who:
Accept one year of self-employed income
Consider gig work if declared through tax
Use bank statements or BAS as alternative income verification
Offer low doc loans or flexible lending policies
This is where having a mortgage expert matters. As a first home buyer mortgage broker, we help you present your income in the strongest possible light – whether you’re a part-time Uber driver, weekend DJ, or full-time freelancer.
A Quick Note on Combined Income
Even if your side hustle can’t be fully included, it could still help boost your savings or support your living expenses. That means your borrowing power could still increase overall – especially if you’re applying jointly with a partner.
Use tools like our borrowing power calculator, monthly mortgage repayment calculator, and income calculator to run scenarios -or better yet, let us run them for you.
Real Talk: What Should You Do?
Already have a side hustle? Start cleaning up your records now -separate accounts, clear income tracking, and get advice before tax time.
Just started your business? Don’t stress – but know that traditional lenders will likely need at least 12 months before they’ll accept the income.
Unsure how it affects you? That’s what we’re here for.
Let’s Make Your Income Work Smarter
Whether you’re buying your first home, refinancing, or planning a property investment, we’ll help you:
Match with lenders who understand side income
Present your financials correctly
Boost your borrowing power and avoid common mistakes
Explore low documentation loans, guarantor loans, or refinance home loan options if needed
Final Word
Your hustle is valid. Let’s make sure the banks see it that way, too.
Disclaimer:
This information is general in nature and does not constitute financial or legal advice. Your personal circumstances, objectives, and financial situation should always be considered before making any decisions. Pre-approval conditions and eligibility vary by lender and are subject to change.
