Among the dedicated consumer stream of 1,181 respondents, more than half had considered becoming self-employed, while more than one-fifth had seriously considered it or planned to do so. The report also found that self-employed respondents faced distinct lending challenges and made limited use of mortgage brokers. Understanding their finances and needs could help brokers identify where to offer support.
Sponsored by Bluestone Home Loans and produced by Agile Market Intelligence, Consumer Pulse Spotlight: Self-Employed Australians: Pathways and Opportunities drew on Consumer Pulse data from more than 18,000 Australians, including more than 2,200 self-employed respondents, as well as dedicated Bluestone survey streams. It examined property, borrowing and the advice people rely on in the lending market.
Challenges and perceived impacts of self-employment
For all consumers and the self-employed, irregular income (61 per cent) is the leading cause for worry for an individual’s finances. Difficulty building wealth through property ranked lower among financial concerns; however, it was more commonly cited by self-employed Australians (22 per cent) compared to consumers overall (18 per cent). This perception may be what discourages the self-employed group from attempting to build wealth through property, before the conversation has even begun.
Furthermore, 68 per cent of self-employed respondents surveyed were somewhat or very concerned that lending rules for self-employed borrowers could get harder in the next 12 months. Factors such as increased interest rates, government policy or regulatory reform, and tax or deduction rules could complicate the lending market for the self-employed.
Only 10 per cent of self-employed Australians used a mortgage broker in the past year
When asked what they would most likely do if they needed a home loan, 36 per cent of self-employed respondents said they would approach their existing bank, compared with 25 per cent who would speak to a mortgage broker. By contrast, 39 per cent of self-employed respondents had used an accountant or bookkeeper in the past 12 months, compared with 31 per cent of employed respondents and 24 per cent of consumers overall. This suggests openness to professional advice and points to an opportunity for brokers to become part of that conversation.
Interviews with self-employed borrowers identified two recurring factors behind the limited use of mortgage brokers: previous negative broker experiences and existing relationships with business bankers. Some interviewees said brokers had turned them away or appeared sceptical of their income, experiences that could discourage another approach. Others said a business bank manager already understood their finances and was therefore front of mind when they needed a loan.
Where brokers can reach the self-employed
Around 2.2 million Australians are self-employed, and a significant portion of them use professional advisers heavily. Building referral relationships with professional advisers and increasing their visibility could help brokers reach more self-employed Australians. Brokers could also help self-employed Australians understand the options available beyond the major banks. Brokers looking to build stronger relationships with self-employed Australians will need to provide a positive lending experience while helping borrowers navigate an increasingly uncertain lending environment.
About the report
In Agile Market Intelligence’s second edition of Consumer Pulse Spotlight: Self-Employed Australians: Pathways and Opportunities, sponsored by Bluestone Home Loans, the report looks at the current financial situation of self-employed Australians and how they build wealth. Responses were collected from 18,701 Australians, of whom 9,250 were employed while 2,206 were self-employed. Dedicated Bluestone questions were routed to a consumer stream of 1,181 respondents and a self-employed stream of 132.
Download the full report here.
About Consumer Pulse Spotlight
Consumer Pulse is a monthly tracker of over 1,500 Australian consumers developed by Agile Market Intelligence to monitor consumer sentiment, financial stress, and behavioural shifts across key household segments. The Consumer Pulse Spotlight series deepens this data by exploring specific consumer segments in depth, providing brokers access to insights, knowledge, and opportunities.
The first iteration of the Consumer Pulse Spotlight series may be found here.
