Self-Employed Home Loans | Low Doc & Alt Doc Options

Why Banks Keep Declining Self-Employed Borrowers

If you're self-employed, you've probably experienced this frustrating cycle: You earn a good living. You have savings. You can clearly afford the repayments. But when you apply for a home loan, the bank says your "assessed income" is too low.

Here's why this happens:

Tax minimisation works against you — Your accountant helped you legally reduce your taxable income through depreciation, business expenses, and deductions. Great for tax. Terrible for loan applications, because banks use your taxable income, not your actual cash flow
Banks want 2 years of tax returns — If you recently started a business, changed structure, or had an unusual year, you may not have the documentation banks require
Complex structures confuse assessors — Trusts, companies, partnerships, and sole traders are all assessed differently. Many bank assessors don't understand your structure
Variable income is penalised — Banks prefer stable PAYG income. If your income fluctuates seasonally or by project, they may use the lower figure

The result? Profitable business owners get declined while PAYG employees earning half as much get approved. It's not fair — but there ARE lenders who understand self-employed income.

Professional broker meeting with self-employed client

How Finance Hub Gets Self-Employed Borrowers Approved

We have detailed knowledge of which lenders specialise in self-employed lending — and exactly what documentation each one requires. Here's how we help:

Multiple Documentation Pathways: Full doc (2 years tax returns), low doc (BAS + accountant letter), alt doc (bank statements), and even asset-lend options for borrowers with significant equity. We match you to the right pathway
Income Add-Back Calculations: We know which lenders add back depreciation, interest expenses, and one-off costs to your assessed income. This can dramatically increase your borrowing capacity
BAS-Based Assessment: Some specialist lenders assess income primarily from your Business Activity Statements — often showing much higher income than tax returns. We know which ones and their exact requirements
Bank Statement Programs: Certain lenders will assess your income based on 3-12 months of business bank statements. If your cash flow is strong, this can be a powerful pathway
Specialist Lender Expertise: We work with lenders who have dedicated self-employed assessment teams — people who understand business structures, seasonal income, and growth trajectories

Happy self-employed couple achieving homeownership

Why Self-Employed Borrowers Choose Finance Hub

Specialist knowledge across every self-employed lending pathway

📋

6+ Documentation Pathways

Full doc, low doc, alt doc, BAS-based, bank statement, and asset-lend options. We match you to the pathway that shows your income most accurately.

💼

Income Add-Back Expertise

We calculate add-backs for depreciation, interest, and one-off expenses — potentially adding tens of thousands to your assessed income.

📊

BAS-Based Lending

Specialist lenders assess income from your BAS statements, which often reflect your true earning capacity better than tax returns.

🏗️

All Structures Welcome

Sole trader, partnership, company, trust — we've helped them all. We know which lenders handle your structure most favourably.

⚡

Specialist Assessors

Access lenders with dedicated self-employed assessment teams who understand business income — not just PAYG payslips.

🌏

Bilingual Business Support

Many Vietnamese-Australian business owners benefit from discussing their situation in both languages. We make it comfortable.

Real-World Scenario

See how income add-backs can transform your borrowing capacity

📋 Real Example: Business Owner Declined by Major Bank

A plumbing business owner earning $180K in actual income, but showing $95K on tax returns after deductions:

Taxable Income

$95,000

After Add-Backs

$162,000*

Extra Borrowing Power

~$210K*

*Example only. Add-back amounts and borrowing power depend on individual circumstances, business structure, and lender policies. Actual figures may vary significantly.

How It Works

Our streamlined process for self-employed borrowers

1

Income Review

We analyse your BAS, bank statements, and tax returns to find the best pathway

2

Add-Back Calculation

We identify legitimate add-backs to maximise your assessed income

3

Lender Matching

We match your profile to lenders whose policies suit your documentation

4

Application

We prepare and submit your application with supporting documentation

5

Approval & Settlement

We manage the process through to approval and settlement day

Frequently Asked Questions

Common questions about self-employed home loans

Can I get a home loan with only 1 year of tax returns?

Yes, some lenders accept 1 year of tax returns, and specialist lenders may assess income using BAS statements or bank statements without requiring tax returns at all. The documentation pathway depends on your situation, and we'll identify the most suitable option.

What is a low doc home loan?

A low doc loan requires less documentation than a standard (full doc) loan. Instead of 2 years of tax returns, you may provide an accountant's letter, BAS statements, or a self-declaration of income. Low doc loans typically require a minimum 20% deposit and may have slightly higher interest rates.

Will I pay a higher interest rate as a self-employed borrower?

Not necessarily. If you can provide full documentation (2 years of tax returns showing sufficient income), you'll typically access the same rates as PAYG borrowers. Low doc and alt doc products may carry a small premium (0.25-1.0% depending on the lender and LVR), but the ability to access credit often outweighs this cost.

What are income add-backs and how do they help?

Add-backs are non-cash deductions (like depreciation) or one-off expenses that lenders can add back to your taxable income for assessment purposes. For example, if you claimed $40K in depreciation, some lenders will add that back to your assessed income. This can significantly increase your borrowing power.

I just started my business — can I still get a loan?

This is more challenging but not impossible. Some lenders will consider borrowers with less than 12 months of self-employment if you were previously in the same industry as a PAYG employee. Others have specific new-business programs. We'll explore every avenue based on your history.

Can I use my company or trust to purchase property?

Yes, but lending for company and trust purchases has different rules. Not all lenders offer trust lending, and those that do have varying policies on guarantor requirements, LVR limits, and income assessment. We specialise in finding the right lender for non-individual borrowers.

What deposit do I need for a self-employed home loan?

For full doc applications, you may only need 5-10% deposit. For low doc and alt doc products, most lenders require a minimum 20% deposit. Some specialist lenders may go to 80% LVR (20% deposit) for alt doc, while others may accept higher LVRs with additional conditions.

My ABN is less than 2 years old — does that matter?

Many lenders require a minimum ABN registration period (commonly 12-24 months). However, some specialist lenders have shorter ABN requirements or will consider your overall industry experience. If you recently registered your ABN but have years of experience in the same field, options likely exist.

Can I refinance an existing loan as a self-employed borrower?

Absolutely. Refinancing as self-employed follows similar documentation pathways. If your existing loan is with a bank that doesn't understand your income properly, a specialist lender may offer you better terms. We often help self-employed borrowers refinance to more suitable products.

Self-Employed? Banks Keep Saying No? There Are Lenders Who Say Yes

2.5M+

30+

350+

6+