🏡 Director’s Wage & Home Loans: What Every Self-Employed Borrower Should Know

Introduction

If you’re self-employed and pay yourself a director’s wage, you might be wondering: Can this income help me secure a home loan? The short answer is yes — but the long answer depends on your lender, your documentation, and how your business is structured.

Let’s unpack the details and help you navigate the path with confidence.

💼 What Is a Director’s Wage?

A director’s wage is the salary you pay yourself from your company. Unlike sole traders who draw income directly from business profits, directors of companies (often with ABNs and registered entities) may receive a regular PAYG-style salary. This can make your income appear more stable — but lenders still want proof.

🏦 How Do Banks View Director Income?

Each lender has its own policy. Here’s how some of Australia’s major banks assess director wages in 2025:

• NAB leads the way in flexibility. If your director’s wage is consistent and backed by your ATO income statement, they’ll treat it like PAYG income. Even newer ABNs can be considered, making NAB a strong option for those scaling up.
• ANZ is open to director wages but wants history. You’ll need at least one payslip and an income statement, and your ABN must be active for 18 months or more.
• Bankwest has tailored its policy for self-employed directors. If you’ve received regular wages for six months, they’ll treat you like a PAYG applicant — a major win for simplicity.
• CBA takes a more conservative stance. You’ll need six months of salary credits and two years of business profit. If that’s not available, they may ask for tax returns or an accountant’s letter.

📑 What Documents Do You Need?

To strengthen your application, prepare:

• ATO income statements
• Recent payslips
• Bank statements showing salary credits
• ABN registration details
• Business financials (profit & loss, tax returns)
• Accountant’s verification (if required)

The more consistent and transparent your income appears, the better your chances.

🔍 Why Presentation Matters

Even if your income is solid, how you present it can make or break your application. Lenders want to see stability, regularity, and documentation that aligns with PAYG standards. That’s where a finance specialist — like AA Finance Solutions — can help you package your income strategically.

🎯 Final Thoughts: Strategy Over Stress

Director wages can unlock home loan approval. But navigating lender policies, documentation, and timing takes expertise. Whether you’re buying your first home, refinancing, or investing, understanding how your income is viewed is key.

At AA Finance Solutions, we simplify the process, tailor your application, and help you move forward with clarity and confidence.

📲 Ready to explore your options? Let’s connect and make your next move simple, strategic, and stress-free.