Key Takeaways
- Accounting consultants access the same professional concessions as any eligible accountant, including the LMI waiver, where they hold a recognised membership.
- Consulting income is generally assessed as self-employed, on two years of returns and financials, with the ABN registered for around two years.
- Variable or project-based income is best supported by a consistent two-year picture and legitimate add-backs.
- Serviceability is assessed at the actual rate plus 3 percentage points, regardless of how income is earned.
Accounting consultants often have strong earnings but an income shape that standard lenders find harder to read, because consulting work is frequently delivered through your own entity, on variable engagements, rather than as a steady salary. That structure, not your expertise, is what shapes a home loan application. With variable rates around the 6% mark and a Lenders Mortgage Insurance waiver still available to eligible accountants, the task for a consultant is less about whether the concessions apply and more about presenting consulting income in a way the right lender will accept.
Presenting variable consulting income in its strongest accurate form is something a mortgage broker for accountants handles routinely. This article explains the concessions available to accounting consultants, how consulting income is assessed, what strengthens an application, and what the benefits do not change.
The Concessions Available to Accounting Consultants
It is worth confirming the baseline first. An accounting consultant who holds current membership of a recognised body such as CPA Australia (Certified Practising Accountant), Chartered Accountants Australia and New Zealand (CA ANZ), or the Institute of Public Accountants (IPA) accesses the same professional concessions as any eligible accountant. The principal benefit is a waiver of Lenders Mortgage Insurance (LMI), the premium normally charged on borrowing above 80% of a property’s value, often up to 90% and sometimes 95%, which on a higher-loan-to-value-ratio (LVR) purchase around the $1 million mark could save a premium exceeding $20,000. Possible rate discounts also apply. Consulting independently does not remove eligibility; it changes how your income is evidenced rather than whether the concession applies.
How Consulting Income Is Assessed
The defining feature of a consultant’s application is self-employed income assessment, since most consultants work through their own arrangement rather than as an employee. Understanding the components helps you prepare.
Self-Employed Verification
Where you consult through your own Australian Business Number or company, lenders generally assess two years of personal and business tax returns and financial statements, with the ABN usually registered for around two years. Some lenders consider one year of returns for established consultants meeting certain criteria, which can help if you have recently moved into consulting.
Net Profit and Add-Backs
Lenders look at the net profit of your consulting activity rather than gross fees, and may add back certain non-cash or one-off expenses such as depreciation to arrive at an assessable income. Identifying every legitimate add-back, and choosing a lender that recognises them, is often where borrowing capacity is found.
Variable and Project-Based Income
Consulting income can arrive unevenly across engagements, so a consistent two-year picture helps a lender form a reliable view, since a single strong or weak year can otherwise distort the assessment. Demonstrating that the work and income are ongoing supports the strongest outcome.
What Strengthens a Consultant’s Application
Because consulting income raises continuity and verification questions, a few practical steps improve how a lender views your application. Each addresses a likely concern.
Up-to-date financials and tax returns are the foundation, since lenders work from your declared, assessable figures, and a clear two-year record of consistent or rising income carries the most weight. Keeping clean business records, maintaining your ABN, and being able to show a pipeline of ongoing engagements all help reassure a lender that income will continue. As with any self-employed accountant, the tension between minimising taxable income and maximising borrowing capacity is worth planning around with your own tax adviser ahead of a purchase. Whatever the figure, the lender ultimately tests your ability to service the loan at the actual rate plus a buffer of 3 percentage points set by the Australian Prudential Regulation Authority (APRA), roughly 9% at current rates, so a clear, well-evidenced income picture is what carries the application.
Frequently Asked Questions (FAQs)
Do accounting consultants qualify for the LMI waiver?
Generally yes, where they hold current membership of a recognised body such as CPA Australia, CA ANZ, or the IPA. Consulting independently does not remove eligibility; it mainly affects how your income is evidenced. The waiver can apply up to 90% of the value and sometimes 95%, and must be requested with your membership evidenced.
How is my income assessed as a consultant?
Usually as self-employed income, on two years of personal and business tax returns and financial statements, with your Australian Business Number registered for around two years. Lenders assess the net profit of your consulting activity and may add back certain non-cash expenses. Some accept one year of returns for established consultants meeting certain criteria.
Does irregular project income make borrowing harder?
It can require more care, since uneven income across engagements is something lenders examine closely. A consistent two-year picture helps, as a single strong or weak year can distort the assessment. Showing that your work and income are ongoing, with a pipeline of engagements, supports the strongest outcome, and lender choice matters.
Why does my borrowing capacity look lower than my fees?
Because lenders assess your net profit and declared, assessable income rather than gross consulting fees. Business expenses and any tax minimisation reduce the figure a lender uses. Capturing every legitimate add-back at application helps, and planning how income is declared ahead of a purchase, with your own adviser, can make a real difference.
I recently started consulting. Can I still get a loan?
Possibly, though most lenders prefer two years of self-employed financials. Some consider one year for established practitioners meeting certain criteria, particularly where you have a strong prior history in the profession. Your ABN tenure and a clear income picture matter, so it is worth confirming which lenders suit a shorter history before applying.
Does qualifying mean I can borrow more?
The concession lowers the cost of borrowing rather than lifting your capacity, which the lender assesses at the actual rate plus a 3 percentage point buffer. For a consultant, your assessable income is usually the main constraint, which is why how it is declared and presented matters so much.
The Bottom Line
Accounting consultants access the same professional concessions as any eligible accountant, with the LMI waiver able to remove a premium exceeding $20,000 on a higher-LVR loan where you hold a recognised membership. The real work for a consultant is on the income side: assessment is generally self-employed, on two years of returns and net profit, legitimate add-backs can lift the figure, and variable or project-based income is best supported by a consistent record and evidence of ongoing work. None of it changes the serviceability test at the actual rate plus 3 percentage points, so the sensible step is to present your assessable income clearly and match it to a lender that understands consulting income.