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Home loans
Buying your next home or an investment property in Melbourne. We compare lenders and structure the loan around your plans.
Find out more : Home loansD-07
Self-employed & low doc
Self-Employed and Low Doc Home Loans
Plain English. Properly structured.
Running your own business shouldn't make buying a home harder, but it often does. Lenders want to see income in a particular way, and a strong business can look weak on paper. We help self-employed people across Melbourne's south-east present their income properly, with full doc and low doc options.
01 — What it is
Self-employed & low doc, in plain English.
For a standard full doc loan, self-employed borrowers usually provide two years of personal and business tax returns, plus notices of assessment. The lender averages your income, adds back certain expenses like depreciation and one-off costs, and assesses what you can afford. If your business is growing and your tax returns are up to date, this is often the cheapest path.
Low doc loans are for when tax returns don't show the full picture yet. Perhaps you've only been trading a year or so, your latest return is not lodged, or last year was unusually quiet. Instead of tax returns, the lender may accept business activity statements (BAS), business bank statements, or a letter from your accountant confirming your income.
Low doc lending usually comes with a higher rate or a lower maximum loan size, because the lender is taking on more uncertainty. It can still be a smart move if it gets you into the right property now, with a plan to refinance to a standard loan once your returns catch up.
We work closely with your accountant, because how your income is presented can change the result significantly. We're based in Oakleigh and help business owners, tradies, contractors and consultants across Melbourne's south-east and beyond.
02 — Who it suits
Is this the right fit?
- [A]Sole traders and tradies
- [B]Company directors paying themselves through the business
- [C]Contractors and consultants on ABNs
- [D]Business owners with a recent growth year
- [E]People whose latest tax returns have not been lodged yet
- [F]Self-employed borrowers wanting a plan to move to standard lending later
03 — How it works with us
From first chat to settlement.
- 01Stage 1 of 4Understand the business
Understand the business
We talk about how your business makes money, how you pay yourself and where your tax returns are up to.
- 02Stage 2 of 4Choose the path
Choose the path
Full doc, alt doc or low doc. We compare lenders and explain the trade-offs between rate, loan size and paperwork.
- 03Stage 3 of 4Work with your accountant
Work with your accountant
We tell your accountant exactly what the lender needs, so add-backs and letters are prepared correctly first time.
- 04Stage 4 of 4Approve, settle, review
Approve, settle, review
We manage the application to settlement, then set a reminder to review once your next returns are lodged.
04 — What lenders look at
What you'll need.
| Ref | Item | Why it matters |
|---|---|---|
| M-01 | ABN registration | Most lenders want it held for a minimum period, which varies. |
| M-02 | Tax returns | Personal and business, usually two years for full doc. |
| M-03 | Notices of assessment | From the ATO, matching the returns. |
| M-04 | BAS statements | For low doc applications, often the most recent quarters. |
| M-05 | Business bank statements | Showing regular turnover. |
| M-06 | Accountant letter | Some lenders accept a signed declaration of income from your accountant. |
| M-07 | ATO debt status | Any tax debt and payment arrangement in place. |
05 — Common mistakes
What to avoid.
Check 01
Minimising income too hard
Check 02
Hiding an ATO debt
Check 03
Defaulting to your business bank
Check 04
Staying on low doc forever
Q-01How long do I need to be self-employed to get a home loan?
Many lenders prefer two years of trading, but some will consider one year, depending on your industry and history. We will check which lenders suit your timeline.
Q-02What is a low doc loan?
A home loan where the lender accepts alternative income evidence, like BAS, bank statements or an accountant letter, instead of full tax returns.
Q-03Are low doc rates higher?
Usually, yes, and loan sizes may be lower. The trade-off can be worth it if it gets you into the right property sooner.
Q-04Can I get a loan if I have an ATO debt?
Possibly, especially if it is on a payment arrangement. Disclose it upfront so we can find a lender comfortable with it.
Q-05Do you talk to my accountant?
Yes, with your permission. It usually saves time and leads to a better result.
Q-06Do you help self-employed buyers outside Melbourne?
Yes. We're based in Oakleigh, with most clients in Melbourne's south-east, but we help self-employed borrowers elsewhere too.
07 — Related
Related loans.
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Refinancing
Switching lenders, releasing equity or restructuring your loans. We check whether a move actually leaves you better off.
Find out more : RefinancingD-08
Commercial loans
Finance for shops, offices, warehouses and mixed-use property, for owner-occupiers and investors across Australia.
Find out more : Commercial loansFrom the blog
Self-Employed5 min read
Self-Employed Home Loans: How to Get Approved with Low Doc
Self-employed and finding it hard to get a home loan? Here's how lenders assess business income, when low doc loans make sense, and how to prepare a stronger application.
08 — Enquire
Tell us what you're planning.
No cost and no obligation. We'll help you understand your options and what the next step looks like.
Prefer email? Write to help@ridgefinance.au.