Self-employed borrowers could be one of Australia's largest untapped loan markets, according to new research from non-bank lender Bluestone Home Loans and market research firm Agile Market Intelligence.
But there's a disconnect between self-employed borrowers and brokers. While broker use continues to grow in Australia — with approximately 81% of mortgages currently facilitated by brokers — and demand is rising for lending solutions tailored to self-employed borrowers, many still turn to traditional banks for guidance. The mismatch arrives as traditional banks continue to be cautious about lending to borrowers without a steady paycheck.
In fact, the survey polled more than 18,000 Australians and found that self-employed people are actually more likely than those working for a company to enlist some type of professional financial advice. In the last 12 months, 62% of self-employed borrowers paid for some type of professional adviser. Yet only 10% of those surveyed said they went to a mortgage broker for assistance.
The findings point to a potential hole in the market — and opportunity — for both alternative lenders and brokers to better connect with self-employed borrowers and raise awareness of the financing options available to them.
"The awareness gap is a challenge and opportunity for both the non-bank category and for brokers," said Nicole Avery, chief marketing officer at Bluestone. "We all have a role to play in increasing awareness and helping borrowers understand there's more than one path to finance.
"Self-employed Australians are actively seeking professional advice, but many don't have visibility of the full lending landscape," she continued. "That's where brokers can make a real difference. By getting in front of these customers earlier and helping them understand the breadth of options available, brokers can provide confidence, choice and expertise when it's needed most."
Tony MacRae, chief commercial officer at Bluestone, added: "Mortgage brokers continue to play an incredibly important role in helping Australians access finance. But our research suggests many self-employed borrowers aren't making it in front of the broker in the first place. Whether it's because they assume they'll be declined, think the process will be too difficult, or simply don't realise there are lending options designed for people who work for themselves, there's a clear real opportunity to demonstrate value and help more self-employed and alt doc customers secure finance."
That opportunity is particularly pronounced when looking at the broader market.
There are roughly 2.2 million self-employed Australians in 2025, according to the Australian Bureau of Statistics (ABS). For these borrowers, navigating the lending landscape can be more complicated than it is for pay as you go (PAYG) employees, whose income is generally easier for lenders to verify. Self-employed borrowers may need to provide additional documentation or alternative forms of income verification rather than a standard employer pay slip, adding another layer of complexity to the application process. For some banks, that additional work can make self-employed lending less attractive, while others — operating under heightened regulatory scrutiny — may take a more conservative approach to borrowers whose income is less straightforward to assess.
MacRae said many banks do still offer loans to self-employed borrowers, the approval timeline can take much longer than it does from alternative lenders.
Non-banks and specialty lenders, by contrast, offer both speed and flexibility, with many willing to consider alternative forms of income verification rather than relying solely on standard pay slips. That can make the application process more accessible for borrowers whose financial circumstances don't fit neatly within traditional lending criteria.
At the same time, Australia's lending market has become increasingly complex, with borrowers navigating higher interest rates (and the prospect of more on the way), a revised budget and tax guidelines, persistent inflationary pressures, elevated living costs, reduced borrowing capacities and broader economic uncertainty. Taken together, those factors make professional guidance increasingly valuable for self-employed borrowers, who may already face additional hurdles when trying to secure financing through traditional channels.
But why aren't self-employed borrowers going to brokers?
When asked where they would turn to for help with a complex financial situation, 36% of respondents said they would prefer to speak with a bank, compared with just 25% who said they would turn to a mortgage broker.
Bluestone said there are several possible reasons for that gap. Some borrowers may have previously been turned away by brokers and come away believing a bank is their only option when their financial circumstances are more complicated. Others already have an established relationship with a banker, while some simply aren't aware that non-bank lenders are an alternative. Roughly 45% of those surveyed said they were unfamiliar with non-bank lenders.
At the same time, the research suggests that awareness may be translating into openness when borrowers are presented with other options. Some 63% said they would consider a non-bank lender if one were presented to them, despite only 45% being aware that non-banks were an option for funding in the first place.
That gap in awareness comes as 68% of self-employed borrowers said they are concerned lending conditions will tighten over the next year, potentially creating an even greater need for brokers to help borrowers understand the range of financing options available to them.
