When Should You Get Your Business Accounts Done for a Mortgage Application?
If you’re a salaried employee, proving your income to the bank is simple. You provide three recent payslips, and your income is considered verified. But if you're self-employed, things are more complex. Your income isn’t as straightforward, and banks require a clearer picture of your business’s financial health. This is where up-to-date business accounts become critical—especially when you're applying for a mortgage.
Why Business Accounts Matter for Home Loans
If you're self-employed and applying for a mortgage, the bank won’t accept just your word or a rough estimate of income. They need a formal set of financial statements prepared by a chartered accountant. These accounts show your total business income, expenses, and—most importantly—your net profit. It’s this profit that banks use to calculate your personal income for mortgage purposes.
You might be surprised by how early in the year banks expect to see these accounts. At the time of writing, it's May 2025. Your accountant isn’t required to submit your 2024/2025 accounts to Inland Revenue until March 2026. But if you're applying for a mortgage any time from August 2025 onwards, lenders are going to want to see the most recent financial year’s accounts—whether or not you’ve filed them with the IRD.
That leaves many business owners caught in the middle: the IRD doesn’t need your financials for another 10 months, but the bank will want them in just a few weeks.
What If I Haven’t Finalised My Latest Accounts Yet?
If you’re looking to apply for lending between now and August, you may be able to use the prior year’s financials (April 2023–March 2024). However, come late August or September 2025, the bank will typically start requiring financials for the April 2024–March 2025 year.
If you don’t have your latest accounts completed, this could hold up your loan application or reduce how much you can borrow. The takeaway? If you’re even thinking about applying for a mortgage in the next few months, it pays to get your accounts done early.
How Do Banks Calculate Income from Business Financials?
One of the most common misconceptions among self-employed borrowers is quoting the business’s gross income rather than its net profit. But banks only care about what’s left after all expenses are paid.
For example:
Gross income: $100,000
Expenses: $30,000 (on materials, rent, utilities, etc.)
Net profit: $70,000
In this case, the bank considers your income to be $70,000—not $100,000.
What If I Work From Home?
When reviewing business accounts, banks are careful to avoid “double-dipping” deductions—especially with home office costs.
Let’s say you deducted $10,000 in expenses for rent and electricity related to a home office. Because these are personal expenses you’d have regardless of being self-employed, the bank will likely add them back into your income calculation. So instead of a $70,000 profit, your income might be treated as $80,000.
This adjustment helps create a more accurate picture of your financial capacity and avoids penalising you for expenses that are, in effect, already covered elsewhere in your budget.
Other business expenses banks may add back include:
Home office utilities and rent
Mobile phone bills (if used for both personal and business)
Interest payments on a personal mortgage if the property is partially used for business
Can I Use Recent Accounts Completed Before September?
Absolutely. If your most recent financial year was a good one, there’s no need to wait until September. You can use your new accounts as soon as your accountant has completed and signed them off. In fact, banks prefer the most up-to-date financial information available.
If you know your 2024/2025 financials are stronger than the previous year, it may be worthwhile getting your accounts done as early as April or May. This gives you the best chance of maximising your borrowing potential.
Why Timing Your Accounts Matters
Many business owners wait until close to the IRD’s final submission date in March the following year before preparing their accounts. But if you're considering buying a home—or even refinancing—between August and March, that delay can become a major issue.
By preparing your financials early, you're giving yourself:
A smoother mortgage application process
The ability to use stronger, more recent income figures
A competitive edge in a market where timing is everything
Even if you’re not ready to apply for a loan, it's worth having your financials prepared. You’ll be well-positioned to move quickly when the right opportunity comes along.
Don't Wait Until It's Too Late
If you’re self-employed and thinking about applying for a mortgage between September 2025 and March 2026, it’s time to act. You don’t have to file your financials with the IRD yet, but you do need a completed and signed-off set of accounts from your accountant. That means now is the time to gather your documents and get them to your accountant well ahead of the usual rush.
The bonus? Your accountant will likely thank you for being organised—unlike the other clients who wait until the very last minute.
Strategic Planning Puts You Ahead
Being self-employed brings with it flexibility, autonomy, and the ability to control your financial future. But it also comes with responsibilities that salaried employees don’t have to think about—including when to get your accounts done.
By being proactive, working closely with your accountant, and keeping in touch with your mortgage adviser, you can ensure that your business success translates into home ownership success.
How does the bank calculate my income from my financial accounts?
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