Getting approved for a home loan when you're self-employed can feel like climbing a mountain—banks often ask for years of tax returns, financial statements, and proof of stable income. But with the help of experienced brokers for self-employed borrowers, that mountain becomes much easier to climb.
Whether you're a freelancer, contractor, sole trader, or small business owner, working with a mortgage broker who understands self-employed income structures can significantly improve your chances of approval—and help you find the right loan without unnecessary paperwork or rejections.
Why Self-Employed Borrowers Face Challenges
Banks tend to prefer borrowers with PAYG (pay-as-you-go) income because it's stable and easy to verify. On the other hand, self-employed applicants often have:
Irregular income
Complex tax returns
Business deductions that lower net profit
Limited documents (especially in new businesses)
Cash flow that doesn’t reflect taxable income
These factors can make traditional lenders hesitant—even if you’re financially sound.
That’s where mortgage brokers for self-employed come in. They know how to present your income effectively, choose the right lenders, and structure the application to improve approval chances.
What Is a Low Doc or Alt Doc Home Loan?
If you don’t have full financials like two years of tax returns, you may be eligible for a low doc (low documentation) or alt doc (alternative documentation) home loan.
These loans are designed specifically for self-employed borrowers and allow for different forms of income verification, such as:
6–12 months of business bank statements
A signed accountant’s declaration
BAS (Business Activity Statements)
Business income statements
A combination of documents instead of full tax returns
A qualified broker knows which lenders accept these forms and can build a strong case using them.
Benefits of Using Brokers for Self-Employed
Here’s how a specialist mortgage broker can help if you’re self-employed:
✅ Understands Self-Employed Income
They know how to interpret tax returns, add back expenses, and explain your business’s financial position to lenders.
✅ Access to Specialist Lenders
Brokers can connect you with non-bank and specialist lenders who are more flexible with documentation requirements and understand business cash flow.
✅ Tailored Loan Structures
Whether you want interest-only repayments, offset accounts, or flexible redraw features, brokers can customise the loan to your goals.
✅ Saves Time and Paperwork
They guide you through which documents are actually needed and deal with the banks on your behalf—reducing stress and speeding up approvals.
✅ Maximises Approval Chances
With access to over 30 lenders and experience working with self-employed borrowers, brokers know which lenders are most likely to say "yes."
Loan Options for Self-Employed Borrowers
Some of the most common loan options include:
Low Doc Loans – Require minimal paperwork, ideal for newer businesses
Alt Doc Loans – Accept a broader range of income verification
Full Doc Loans – For those with 2+ years of clean financials
Refinancing Loans – To consolidate debts or reduce interest costs
Construction Loans – For building a home or major renovation
Investment Loans – Designed for business owners looking to grow wealth through property
A skilled broker can help you choose the right option based on your documents, credit score, and financial goals.
What Documents Do You Need?
Depending on the lender and your business history, brokers may ask for:
ABN registration details (usually 1–2 years active)
GST registration (if applicable)
Business bank statements (typically last 6–12 months)
Accountant’s letter or income declaration
BAS statements or interim financials
Tax returns (if available)
Even if you’re not eligible for full-doc loans, brokers can still help you structure an alternative solution.
Are Interest Rates Higher for Low Doc Loans?
Generally, low doc or alt doc loans may come with slightly higher interest rates because they represent more risk to lenders. However, rates are increasingly competitive, and brokers can help you refinance to a lower rate later once you have full documentation.
Many self-employed clients use low doc loans as a short-term solution, then switch to standard loans after 1–2 years.
How Brokers Get Paid – Is It Free?
Most brokers for self-employed work on a commission paid by the lender once your loan is settled. This means:
✅ No upfront fees in most cases
✅ Transparent disclosure of lender commissions
✅ You benefit from expert advice without extra cost
For highly complex loans (like bad credit or commercial lending), some brokers may charge a fee, but this is disclosed in advance.
Tips for Self-Employed Home Loan Success
Keep Your Business Financials Up to Date
Minimise deductions before applying, if you want to show higher net income
Avoid last-minute changes to your business structure or bank accounts
Use a broker who specialises in self-employed lending
Be honest and transparent about your income and expenses
Final Thoughts
Being self-employed shouldn't stop you from owning property or building wealth. With the right guidance from a broker for self-employed borrowers, you can navigate the loan process with confidence—even if your income is complex or your documents are non-traditional.
Don’t let the banks’ strict rules hold you back. Work with a broker who knows how to showcase your financial strength—and helps you find a lender that understands self-employment.
