Self-employed, low doc and alt doc home loans
Business income rarely arrives as a neat payslip, and plenty of lenders are set up for that.
Anita helps identify lenders whose policy may suit the way you earn.
Reviewed by Anita Callaghan, Director and Principal Broker of Anita Finance, Credit Representative 557021.
Last updated .
Anita is self-employed herself
Anita has run her own broking business since 2022, so she knows how self-employed income moves through the year.
She reads your numbers the way a business owner would, and then the way a lender will.
- Sole traders and contractors.
- Company directors and business owners.
- Business owners whose income has grown since their last tax return.
- Newer businesses, since lenders differ on how long you need to have been trading.
- Self-employed borrowers with a tax bill, who may also be looking at refinancing to pay out ATO debt.
Full doc, low doc and alt doc, explained
Full doc
A full doc application shows your income with your tax returns and financial statements.
These are the standard documents most lenders ask for, which usually gives you the widest choice of lenders.
Low doc
A low doc loan requires less financial documentation to prove your income, assets and liabilities than a standard loan. (Moneysmart)
Low doc loans are typically used by self-employed people and small business owners, and usually come with higher interest rates and terms that can restrict borrowers. (Moneysmart)
Alt doc
Alt doc, short for alternative documentation, shows your income with other evidence instead.
ASIC's 2014 review of low doc lending found lenders verifying self-employed income with business bank statements and letters from accountants. (ASIC, 2014)
Anita checks first whether a full doc application is possible, because it may open up lower-cost options.
How a self-employed application runs
Your income, understood
Anita starts with how your business actually earns, before any lender sees your file.
The right documents
She works out whether a full doc, low doc or alt doc application suits your situation.
Lenders that fit
Your application goes to a lender whose policy may suit your type of income.
Your accountant involved
Anita works with your accountant so the paperwork lines up with what the lender expects.
What helps to have on hand
A rough idea is plenty for a first conversation.
Anita tells you what your lender is likely to ask for once she knows your situation.
- Your most recent tax returns and financial statements, if you have them.
- Your business bank statements.
- A letter or declaration from your accountant.
- Your ABN, and how long you've been trading.
- Details of your current debts, including any ATO debt.
Self-employed home loan questions
Can I get a home loan if I'm self-employed?
Yes, many lenders offer home loans to self-employed borrowers, and they differ in the documents they'll accept.
Anita helps identify lenders whose policy may suit the way you earn.
What is a low doc home loan?
Moneysmart describes a low doc loan as one that requires less financial documentation to prove your income, assets and liabilities than a standard loan.
They're typically used by self-employed people and small business owners, and usually come with higher interest rates.
What's the difference between low doc and alt doc?
Both show your income with something other than a full set of tax returns and financial statements.
Alt doc usually means alternative evidence such as business bank statements or a letter from your accountant, and Anita can explain which documents each lender accepts.
How long do I need to have been self-employed?
Each lender sets its own minimum trading history, and it varies from lender to lender.
Anita can tell you which lenders may suit your trading history.
Is a low doc loan more expensive?
Low doc loans usually come with higher interest rates than standard loans, according to Moneysmart.
That's why Anita checks first whether a full doc application is possible, since it may open up lower-cost options.
Other ways Anita can help
Refinance to pay out ATO debt
Using the equity in your home to clear a tax debt, with lenders whose policy allows it.
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The next property structured with the one after it in mind.
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Read moreAbout Anita
Bank trained, now broking for families and business owners across Sydney and Australia.
Meet AnitaShow Anita how your business earns.
Send a few details about your business and what you're hoping to buy or refinance, and Anita will come back to you with the options that fit.
The first conversation usually takes about 20 minutes, and it gives you a clearer picture of your options.
Monday to Friday, and after hours when needed.