4.9/5 Google Rating
200+ 5-Star Reviews
40+ Lenders on Panel
1,000+ Loans Settled
$0 Broker Fee to You
Self-Employed Lending Specialists

Self-Employed? The Banks Don't Understand Your Income.

You run a profitable business, pay your bills, and even have savings — but your tax return says you earn $50,000. Sound familiar?

"My accountant minimises my tax — now the bank says I can't afford a home loan"
"I haven't lodged last year's tax return yet"
"I've only been in business for 6 months"
"The bank wants 2 years of financials I don't have"
"I have a small default from 3 years ago"
Check My Eligibility Call 0480 03 03 03
Over 2.3 million Australians are self-employed — yet most banks treat their income as second-class. We don't.
Self-employed business owner approved for home loan

Low Doc vs Alt Doc vs Full Doc — What's the Difference?

Understanding these terms is the first step to unlocking your home loan options. Here's the plain-English breakdown every self-employed borrower needs to know.

Full Doc Loans

The standard loan type most banks prefer. Works perfectly for PAYG employees with regular payslips.

  • 2 most recent payslips
  • 2 years of tax returns
  • Notice of Assessment from ATO
  • Full financial statements (if self-employed)
  • Lowest interest rates available
Most Common

Alt Doc Loans

The modern replacement for low doc. Accepts alternative documents instead of traditional tax returns and payslips.

  • Business Activity Statements (BAS)
  • Business bank statements (3-6 months)
  • Accountant's verification letter
  • Still requires income verification
  • Rates only 0.5-1.5% higher than full doc

Low Doc Loans

The original term from before the GFC. Required minimal documentation — now largely replaced by Alt Doc.

  • Pre-2009 term, mostly historical
  • Some lenders still use the term
  • Now follows Alt Doc verification rules
  • NOT "no doc" — verification is still required
  • Equivalent to Alt Doc in practice today

Why the change? The National Consumer Credit Protection Act 2009 (NCCP) transformed Australian lending after the GFC. Lenders must now take "reasonable steps" to verify your income — even for low-doc products. This means the old-style "sign a declaration and you're approved" loans no longer exist. Today's Alt Doc loans are properly regulated, responsibly assessed, and still highly accessible for self-employed borrowers who can provide alternative documentation.

How Lenders Verify Your Income

This is the most important section on this page. Understanding these four methods will show you exactly how to qualify — even without traditional tax returns.

Method 1

Business Activity Statements (BAS)

Your BAS is a quarterly or monthly statement lodged with the ATO showing GST collected and paid. It's one of the strongest forms of income evidence because it's lodged with a government body — lenders trust it.

How lenders use it

Lenders annualise your GST turnover and apply an industry-specific profit margin to estimate your net business income. Most require a minimum of 6 months of ATO-lodged BAS (not drafts).

Worked Example

Quarterly GST turnover: $50,000
Annualised turnover: $200,000
Industry profit margin (trades): 40%
Estimated income: $80,000 per year
Best for: Established businesses with regular GST reporting
Method 2

Business Bank Statements

Your business bank statements provide the strongest real-time evidence of your income because they show actual cash flowing through your business — not projections or declarations.

How lenders use it

Lenders typically require 3 to 6 months of business transaction account statements. They analyse regular credits and deposits to estimate income. Some use the average monthly credits; others use the lowest month × 12 for a conservative figure.

Why it's so powerful

Bank statements can't be fabricated and show genuine cash flow. They also reveal spending patterns, regular customers/clients, and business stability — all factors lenders love to see.

Best for: Businesses with consistent cash flow patterns
Method 3

Accountant's Verification Letter

A signed letter from your registered accountant (CPA, CA, or registered tax agent) that officially declares your business income for the past 12 to 24 months. Highly respected by lenders.

What's required

Each lender has their own template for the accountant to complete. The accountant must have acted for you for a minimum period (usually 12+ months) and may need to have prepared your recent financials. The letter declares your gross and net business income.

Key considerations

Your accountant puts their professional registration at risk by signing the letter — so they need to be confident in the figures. This means having an established relationship with your accountant is important for this method.

Best for: Established businesses with a long-standing accountant relationship
Method 4

Tax Returns (1-2 Years)

Standard ATO tax returns plus your Notice of Assessment. While this is effectively "full doc" verification, some specialist lenders accept just 1 year instead of the 2 years most banks demand.

The advantage with specialist lenders

Major banks almost always require 2 complete years of tax returns. Specialist non-bank lenders may accept just 1 year, and they often apply a lower serviceability buffer (2% vs 3%), potentially increasing your borrowing capacity by tens of thousands of dollars.

Strategic tip

If your latest tax return shows stronger income than the previous year, a 1-year assessment with a specialist lender can work in your favour — you get assessed on your best year rather than an average.

Best for: Established businesses with up-to-date (but perhaps only 1 year) tax lodgements

What Our Panel of 40+ Lenders Can Offer

Every lender has different criteria for alt doc and low doc loans. Here's a snapshot of the range of options available through our panel — we'll match you to the right one.

Feature Lender Option A
Prime Alt Doc		 Lender Option B
Specialist		 Lender Option C
Lite Doc		 Lender Option D
Low Doc
Min ABN History 6-12 months 6 months Varies Varies
BAS Accepted ✅ 6 months ✅ 6 months ✅ ✅
Bank Statements ✅ 3 months ✅ 6 months ✅ ✅
Accountant's Letter ✅ ✅ ✅ ✅
Max LVR Up to 90% Up to 85% Up to 80% Up to 85%
Max Loan Amount Up to $3.5M Up to $8M Up to $50M Up to $8M
Credit Issues Considered Minor only ✅ Case by case Case by case ✅ Case by case
100% Offset Account ✅ ✅ ✅ ✅
Interest Only Available ✅ ✅ ✅ Up to 5 years ✅
Serviceability Buffer ~2% ~2-2.5% Varies Varies
Start-up Business Some programs ✅ Some programs ✅

 This table shows a representative range across our lender panel. Actual policies vary — your broker will match you to the specific lender that suits your profile.

Which Income Verification Suits You?

Every self-employed borrower is different. Here are five real-world scenarios we see every week — one of them probably sounds like you.

🔧

The Established Tradie

  • Running a plumbing business for 5+ years
  • Revenue of $400,000+ per year
  • Tax return shows only $65,000 (legitimate deductions for vehicle, tools, depreciation)
  • Bank declined because "taxable income too low"

Best Solution

BAS verification — shows true business turnover of $400K. At an industry profit margin of ~40%, the lender can recognise ~$160,000 income — nearly 2.5x the tax return figure.

Potential borrowing power: Up to $600,000
💼

The New Business Owner

  • Left corporate job 8 months ago to start consulting
  • ABN registered for 8 months, earning well
  • No tax return filed yet as a sole trader
  • Banks want 2 years of self-employed history

Best Solution

Business bank statements (6 months) — shows real consulting income flowing into the business account. Some specialist lenders accept ABN history as short as 6 months.

Potential borrowing power: Up to $500,000
🎨

The Freelancer / Gig Worker

  • Graphic designer with multiple clients
  • Irregular monthly income (feast and famine)
  • Late lodging tax returns (accountant backlog)
  • Banks see irregular income as "risky"

Best Solution

Accountant's verification letter — your accountant can declare your average annual income based on their records, smoothing out the month-to-month fluctuations that scare banks.

Potential borrowing power: Up to $450,000
🏠

The Property Investor (Self-Employed)

  • Self-employed electrician, owns 2 properties
  • Wants to buy a 3rd investment property
  • Small paid default from 4 years ago
  • Major banks decline due to credit history

Best Solution

Specialist lender with alt doc + credit consideration. Several non-bank lenders consider paid defaults on a case-by-case basis, especially older ones. Combine this with BAS income verification for maximum borrowing power.

Potential borrowing power: Varies by equity position
☕

The Partnership / Company Structure

  • Two partners run a successful café
  • Company or trust structure makes income allocation complex
  • Revenue is strong but "personal" income is modest
  • Banks struggle with multi-entity structures

Best Solution

Combination of BAS + accountant's letter. The BAS shows total business turnover while the accountant confirms each partner's share of income. Non-bank lenders are experienced with complex structures.

Potential borrowing power: Up to $600,000+ per partner

See Your Low Doc Loan Repayments

Use our calculator to estimate your monthly repayments based on different loan amounts, interest rates, and terms.

Common Concerns — Answered Honestly

We hear these questions every day from self-employed borrowers. Here are the straight answers.

"Won't low doc loans cost me more?"

Rate premiums are typically only 0.5% to 1.5% higher than standard full doc rates — and that gap has been closing as competition among non-bank lenders grows. Better yet, many lenders offer product conversion after 12-24 months of good repayment conduct, meaning you can switch to a cheaper full-doc rate once your tax returns catch up. The cost of waiting to buy could far exceed the temporary rate premium.

"Is it harder to get approved?"

Not when you have the right documents and the right broker. The key is matching your specific documentation to a lender whose policies accept it. A broker who specialises in self-employed lending knows exactly which lenders suit your profile — and how to present your income in the strongest possible way. Our approval rates for self-employed borrowers are consistently high.

"Can I refinance to a cheaper rate later?"

Absolutely — and we recommend planning for this from day one. Many borrowers start with alt doc, lodge their tax returns over the next year or two, then refinance to a full doc product at a significantly lower rate. Some lenders even offer internal product conversion at no cost. We proactively review your loan every 6-12 months to find refinancing opportunities.

"Do I need a big deposit?"

Not necessarily. Some lenders accept as little as 10-15% deposit for alt doc loans. Having 20% or more avoids Lenders Mortgage Insurance (LMI) and opens up more lender options with better rates. But don't assume you need a huge deposit — one of our prime alt doc lenders offers up to 90% LVR (just 10% deposit required).

"What if my credit isn't perfect?"

Specialist non-bank lenders consider credit events on a case-by-case basis. Some ignore minor defaults under $2,000 entirely. Others consider larger defaults, judgments, and even past bankruptcies (typically 2+ years since discharge). The age, size, and nature of the credit event matters — as does your repayment history since. We've helped hundreds of borrowers with credit issues secure home loans.

Why Use a Mortgage Broker?

When you're self-employed, a specialist broker isn't a luxury — it's a necessity. Here's why going direct to a bank is the worst thing you can do.

We Know EXACTLY Which Lenders Match Your Docs

Every lender has different alt doc policies. We know which ones accept BAS only, which need bank statements, and which are flexible on ABN history. No guesswork.

A Bank Says No = Game Over. We Have 40+ Alternatives.

When you walk into a bank, they can only offer their own products. If they say no, you're back to square one. A broker has 40+ lenders — if one says no, another says yes.

We Present Your Income in the Strongest Way

How your income is presented to a lender can make or break your application. We know how to structure your BAS, bank statements, or accountant's letter for maximum approval chances.

No Cost to You — Brokers Are Paid by the Lender

Our service costs you $0. The lender pays us a commission when your loan settles. You get expert advice, access to 40+ lenders, and a prepared application — all for free.

We Do the Paperwork — You Run Your Business

Self-employed borrowers are busy enough running their business. We handle the entire application from document collection to settlement, keeping you informed at every step.

We Review Your Loan Every 6-12 Months

Has your bank ever called to offer you a lower rate? No — because they don't. We proactively monitor rates and review your loan to ensure you're always on the best deal.

Your Path to Approval in 3 Simple Steps

We've made the process as simple as possible. No jargon, no runaround — just results.

1

Share Your Situation

Tell us about your business, income type, documentation available, and property goals. A quick chat is all we need to understand your options.

2

We Match You to the Right Lender

From our panel of 40+ lenders, we identify the ones that accept YOUR specific documents and offer the best terms for your situation.

3

Get Approved with Confidence

We prepare and present your application for maximum success. You focus on your business — we handle the rest until settlement day.

Start Step 1 Now — It's Free

Find Out If You Qualify

Free, No Obligation Assessment. Most self-employed borrowers are surprised to learn they have MORE options than they thought.

 Your information is 100% confidential. We'll never share your details with anyone without your permission. By submitting, you agree to our Privacy Policy.

Thank You! We've Received Your Details.

One of our self-employed lending specialists will be in touch within 2 business hours to discuss your options. In the meantime, feel free to call us on 0480 03 03 03.

Prefer to Book a Time?

Schedule a free 15-minute discovery call with one of our self-employed lending specialists. No obligation, no pressure — just expert advice.

Or call us directly: 0480 03 03 03

Why Choose Finance Hub?

We're not just another broker. We specialise in self-employed and non-traditional income borrowers — it's what we do best.

Self-Employed Lending Specialists

We focus on self-employed borrowers, contractors, freelancers, and business owners. We understand your income structures and know how to present them to lenders.

We Know Every Lender's Alt Doc Policy

We know exactly which lenders accept BAS, which prefer bank statements, and which are flexible on accountant's letters. No trial and error — just targeted applications.

Ongoing Loan Reviews Every 6-12 Months

We don't disappear after settlement. We proactively monitor your loan and the market, contacting you when we find a better deal or an opportunity to save.

1,000+ Loans Settled for Self-Employed Australians

Our track record speaks for itself. We've helped over a thousand self-employed borrowers secure home loans — many after being declined by their bank.

Has your bank ever called to offer you a lower rate? The answer is almost always no. That's because banks profit from your loyalty. We work for you — and we'll always fight for the best deal, even after your loan settles.

Finance Hub mortgage broker consulting with self-employed client

Frequently Asked Questions

Everything self-employed borrowers need to know about low doc and alt doc home loans in Australia.

What is a low doc or alt doc home loan?

A low doc or alt doc (alternative documentation) home loan is designed for self-employed borrowers, business owners, freelancers, and contractors who can't provide standard income verification like payslips or up-to-date tax returns. Instead, these loans accept alternative documents — such as Business Activity Statements (BAS), business bank statements, or an accountant's verification letter — to prove your income. The term "low doc" dates back to before the GFC; today, "alt doc" is more accurate because lenders still verify your income — they just accept different types of documentation.

What documents do I need for an alt doc home loan?

Typically, you'll need one of the following: (1) Six months of ATO-lodged Business Activity Statements, (2) Three to six months of business bank statements showing regular income deposits, or (3) An accountant's verification letter signed by a registered accountant declaring your business income. You'll also need standard identity documents (driver's licence, passport), details of your assets and liabilities, and information about the property you're purchasing or refinancing. Requirements vary between lenders — your broker will tell you exactly what's needed for the lender that best suits your profile.

How do lenders calculate my income from BAS?

Lenders annualise your GST turnover (total value of sales reported on your BAS) and apply an industry-specific profit margin. For example, if your quarterly BAS shows $50,000 in GST turnover, that equals $200,000 annually. The lender applies a relevant profit margin (e.g., 40% for trades), resulting in an estimated income of $80,000. Profit margins vary by industry and lender — a good broker will match you to the lender that applies the most favourable margin for your industry.

Can I get a home loan with only 6 months ABN history?

Yes. While most mainstream banks require 2+ years of self-employment history, several specialist non-bank lenders accept borrowers with as little as 6 months ABN and GST registration. You'll need to demonstrate income through bank statements or BAS for that period. Having prior industry experience (e.g., you were a PAYG electrician for 10 years before starting your own electrical business) can also strengthen your application. Your broker will identify which lenders on their panel are most suitable for your ABN timeframe.

What's the maximum I can borrow with alt doc?

Maximum loan amounts vary significantly between lenders — from $3.5 million with some prime alt doc lenders to $8 million or more with specialist providers. Some commercial-crossover lenders go even higher. Your personal maximum depends on your verified income, existing debts, deposit/equity, and the property value. Importantly, many alt doc lenders use a lower serviceability buffer (~2% vs the 3% used by major banks), which can significantly increase your borrowing capacity.

Are alt doc interest rates higher than standard rates?

Alt doc rates are typically 0.5% to 1.5% higher than equivalent full doc products. However, this premium has decreased significantly as competition among non-bank lenders has grown. Many lenders also offer a product conversion pathway — after 12-24 months of on-time repayments, you can convert to a full doc product at a lower rate. When you factor in property price growth over the time you'd otherwise spend waiting to qualify for a "cheaper" bank loan, the small rate premium often pays for itself many times over.

Can I refinance from alt doc to full doc later?

Absolutely — this is one of the most common strategies. Start with alt doc to get into the property market now, then refinance to a full doc product within 12-24 months once your tax returns are lodged. Some lenders offer internal product conversion at no cost. Others may require a standard refinance, which your broker can manage. We build this transition into your strategy from day one, ensuring you have a clear pathway to lower rates.

What if I have a default on my credit file?

A default doesn't automatically disqualify you. Several specialist non-bank lenders consider credit-impaired borrowers on a case-by-case basis. Some ignore paid defaults under $2,000 entirely. Others consider larger defaults, judgments, and even past bankruptcies (typically requiring 2+ years since discharge). Key factors include: the age and amount of the default, whether it's been paid, your repayment conduct since, and your current financial position. A specialist broker can match you with the most suitable lender for your credit profile.

Do I need a bigger deposit for a low doc loan?

Not always. While some alt doc products cap at 80% LVR (requiring 20% deposit), prime alt doc lenders offer up to 90% LVR — meaning you only need a 10% deposit. Having 20%+ gives you access to more lenders, better rates, and avoids Lenders Mortgage Insurance (LMI). For purchases, consider that genuine savings over 3-6 months also strengthen your application. Your broker will advise on the optimal deposit strategy for your circumstances.

How long does alt doc loan approval take?

Alt doc loan approvals typically take 5 to 15 business days from a complete application submission. Some non-bank lenders are actually faster than major banks because they have dedicated self-employed lending teams. Pre-approval (conditional approval) can often be obtained within 2-3 business days. The most common cause of delays is incomplete documentation — working with an experienced broker ensures your application is complete and correctly prepared from the start.

Can I get an investment loan with alt doc?

Yes — alt doc loans are available for both owner-occupied and investment properties. Most non-bank lenders offer investment alt doc products with features like interest-only repayments (up to 5 years), 100% offset accounts, and the ability to use rental income to supplement borrowing capacity. Some lenders specialise in portfolio lending for self-employed investors with multiple properties. Investment alt doc loans can be structured with P&I or IO repayments depending on your tax and investment strategy.

What's the difference between a bank and a non-bank lender?

Non-bank lenders provide home loans but don't hold a banking licence (they don't accept deposits). They fund loans through wholesale markets and securitisation. For self-employed borrowers, the key advantages are: (1) More flexible lending criteria, especially for alt doc; (2) Lower serviceability buffers (~2% vs 3%), increasing borrowing capacity; (3) Faster, more personalised assessment of complex income structures. Non-bank lenders are still fully regulated by ASIC and must comply with responsible lending laws. Your loan is secured by a registered mortgage, just like a bank loan, and you get full-featured products including offset accounts, redraw, and flexible repayments.
Check My Eligibility