Key takeaways
- Some lenders accept one year of ABN history — not all require two.
- Prior experience in the same industry strengthens a short-history application.
- A larger deposit, clean credit and steady income all help.
- Success usually comes down to choosing the right lender, not waiting another year.
Plenty of capable business owners put their home-buying plans on hold for a year because someone told them they “need two years of ABN.” Often, they didn’t. Lender policies on self-employment history vary widely, and a number of them will lend on one year — sometimes less — for the right applicant. The trick is knowing which door to knock on.
Where the “two years” rule comes from
Many lenders default to wanting two years of tax returns to average your income and confirm it’s stable. It’s a sensible baseline — but it’s a policy, not a law, and not every lender applies it. Some accept a single year’s financials, especially when the rest of your profile is strong.
What makes one year enough
- Industry experience. Moving from employee to contractor in the same field shows the income isn’t new, just newly self-employed.
- One year’s financials. A completed tax return and, where relevant, GST registration.
- A solid deposit. A lower LVR reduces the lender’s risk and widens your options.
- Clean credit and steady income. A tidy credit file and consistent earnings do a lot of heavy lifting.
If one year’s full financials aren’t available, a low doc loan can be an alternative route — verifying income through BAS or business bank statements instead. Which path is better depends entirely on your numbers.
Why lender choice is everything
The same one-year-ABN application can be declined by one lender and comfortably approved by another, purely on policy. Applying blindly risks an unnecessary decline — and a credit enquiry on your file. Our self-employed home loans guide covers the wider picture; the specific answer for you is a matter of matching profile to policy.
Broker Insight. We regularly see people put plans on hold for a year because someone said they “need two years of ABN.” Often they didn’t — the right lender accepts one, especially with same-industry history.
Don’t wait a year you may not need to
We know which lenders accept shorter trading history — tell us your situation and we’ll tell you honestly whether you can buy now. Free, no obligation.
Book your free game plan callFrequently asked questions
Can I get a home loan with only 1 year ABN?
Yes, it’s possible with some lenders. While many require two years of self-employment history, others will consider one year — or even less in specific cases — particularly if you have a strong history in the same industry beforehand, a solid deposit, and clean finances. The key is matching your profile to a lender whose policy accepts shorter trading history, rather than applying to one that won’t.
What do lenders want to see with a short ABN history?
Typically: at least one year of ABN and GST registration where relevant, one year’s tax return or financials, evidence of consistent income, and often prior experience in the same field (for example, moving from employee to contractor in the same industry). A larger deposit, a clean credit file and steady income all strengthen a shorter-history application considerably.
Is it harder to get approved with a 1-year ABN?
It can be, simply because fewer lenders offer it and they scrutinise the application more closely. But “harder” isn’t “impossible.” The difference between a decline and an approval is usually lender choice — the same application can fail with one lender and succeed with another. This is exactly where specialist broker knowledge of individual lender policies makes the difference.
This guide is general information only and does not take your personal circumstances into account. It is not financial or credit advice. Government schemes, lender policies, rates and tax rules change over time and eligibility criteria apply. Speak with us for advice tailored to your situation.