Services · Specialist
Low-Doc Home Loans for the Self-Employed
If you run your own business, your tax return is often built to keep your taxable income low. Great at tax time, frustrating when a bank uses that same number to work out what you can borrow. A low-doc loan looks at your income another way.
What counts as low-doc income
Low-doc, sometimes called alt-doc, just means the lender verifies your income with something other than two years of full tax returns. It's for self-employed borrowers, contractors and business owners who can show they're trading well without the paperwork a PAYG employee has. The evidence lenders will usually accept includes:
- Business Activity Statements, usually the last few quarters.
- A signed letter from your accountant confirming your income.
- Six to twelve months of business bank statements.
- Sometimes recent BAS plus an accountant's declaration together.
Check full-doc first
Being self-employed doesn't automatically mean low-doc. If your ABN has been going a couple of years and your returns are done, you may well qualify for a standard loan at a sharper rate. I always check that first.
What lenders want to see
Most lenders like an ABN registered for at least one to two years and GST registration to match. A cleaner credit history and a larger deposit help, because low-doc loans usually want you to contribute more, often around 20% or more. Rates can sit a little higher than a full-doc loan to reflect the lighter verification, so if we can get you across as full-doc, we will.
Where a broker earns their keep here
Every lender treats self-employed income differently. Some add back depreciation and one-off expenses, some average two years, some take the latest year if it's higher. Knowing which lender reads your numbers the most sensibly is most of the job. I place a lot of business owners, so I'll match you to the one that fits, then package your file so the assessor sees the real picture. If you're also buying an investment, the investment property page is worth a read.
Been knocked back before?
Send me your last couple of BAS and I'll tell you honestly where you stand.
Frequently asked questions
Do low-doc loans cost more?
Sometimes. Because the lender is verifying your income with less paperwork, the rate can be a bit higher and the deposit larger. If your tax returns are up to date though, you might not need low-doc at all, which is the first thing I check.
How long do I need to be self-employed?
Most lenders want your ABN active for one to two years. A few non-bank lenders will look at shorter trading histories if the rest of your file is strong, usually with a larger deposit.
Can I refinance a low-doc loan to a normal one later?
Yes, and it's a smart plan. Once you've got two solid years of returns, we can often refinance you onto a standard loan with a lower rate. I'll set a reminder to review it with you.
Important information
This information is general in nature and does not take your personal objectives, financial situation, or needs into account. It is not credit assistance or a recommendation to enter into any particular credit contract. Consider whether it is right for you and seek advice before acting. Lending is subject to a lender's eligibility and approval criteria. Terms, conditions, fees, and charges apply.
Greenwood Finance · ABN 23 671 049 693 · Credit Representative No. 551942.
Ready to talk to a real broker?
Book a free 15-minute call with Victor. No fees, no obligation, no jargon.