If you're self-employed, a tradie, a contractor, or you run your own business, chances are you've already discovered that banks don't make it easy. Your income looks different on paper. You might write off expenses that reduce your taxable income. You might have a good year followed by a quieter one. To a bank assessor working through a standard checklist, that can look like a problem.
It isn't a problem. It's just how self-employment works. And there are lenders who understand that, if you know where to look.
I've spent over 20 years in banking and finance. I know how lenders assess self-employed borrowers, what they're actually looking for, and how to present your application in a way that gives it the best possible chance.
A low-doc loan is designed for borrowers who can't provide the standard two years of tax returns and PAYG summaries that most lenders require. Instead of the usual paperwork, lenders may accept alternatives such as business bank statements, a registered BAS, an accountant's declaration, or a self-certification of income.
Low-doc loans used to come with significantly higher rates and stricter terms. That's changed. There are now competitive low-doc products available through specialist lenders that don't penalise you just for being self-employed.
That said, not everyone who is self-employed needs a low-doc loan. If your tax returns show a strong enough income, a standard loan at standard rates may well be on the table. The first step is working out which path makes the most sense for your situation, and that's exactly what I do.
Most lenders want to see at least two years of self-employment history, with tax returns to match. However there are lenders who will consider applications from borrowers with as little as one year of trading history, depending on the scenario. It's worth having a conversation before you assume you don't qualify.
This is one of the most common challenges for self-employed borrowers and one I deal with regularly. Some lenders will add back certain expenses when assessing your income. Others use business bank statements as an alternative measure. I know which approach works best for different situations.
They can, but not always by as much as people expect. The gap between low-doc and standard loan rates has narrowed significantly with specialist lenders. Once I understand your situation I can give you a clear comparison.
Yes. A bank decline doesn't mean you can't get finance. Banks assess applications through their own narrow criteria and they're not always the right lender for self-employed borrowers. I work with a wide panel that includes specialist lenders who take a more practical approach.
Yes. Refinancing works the same way for self-employed borrowers, the documentation requirements are just different. If you're on a rate that no longer suits you, or you want to access equity, it's worth finding out what's available.