How to Refinance Your Home Loan While Self-Employed

If you took out a home loan when you were in salaried employment and have since become self-employed — or if your business has grown and your tax returns have changed — refinancing can feel complicated. But it's definitely possible.

The key is understanding what lenders are looking for and approaching the right ones with the right documentation.

What Makes Self-Employed Refinancing Different?

When you're self-employed, lenders can't just look at a payslip. They need to assess your business income, verify its stability, and calculate a sustainable repayment figure. This takes more documentation and more lender knowledge to navigate well.

The good news: more lenders than ever offer flexible income verification for established self-employed borrowers.

Who Can Refinance While Self-Employed?

You're generally in a strong position to refinance if:

• You've been self-employed for 2+ years
• Your tax returns show stable or growing income
• You have a solid repayment history on your current loan
• Your LVR is 80% or below (no LMI required)

If you've been self-employed for less than 2 years, or if your tax returns show declining income, it's still possible — but you'll likely need to use a specialist lender or a low doc product.

Documentation Required

For a standard (full doc) refinance:

• Last 2 years' personal and business tax returns
• Last 2 years' ATO Notices of Assessment
• Last 6 months' business and personal bank statements
• BAS statements for the last 4 quarters
• Accountant's letter confirming income and business viability

For a low doc refinance:

• Last 12 months' BAS statements
• 12 months' business bank statements
• Self-certification of income (some lenders)

Which Type of Loan Is Best?

If your income has been stable or growing over 2+ years, a full doc refinance to a major lender will usually get you the best rate. If your declared income is lower than your actual cash flow (due to tax planning), a low doc refinance may actually show a higher assessable income.

Lenders to Consider

Not all lenders treat self-employed income the same way. Some of the better options for self-employed refinancers include:

• ING, Macquarie, ME Bank — Strong for standard self-employed with clean tax returns
• Liberty, Pepper Money, La Trobe — Flexible with income assessment for complex structures
• Bluestone, Resimac — Good for low doc and alt doc refinances

A broker can shortlist the right lenders for your specific structure — whether you're a sole trader, company director, or trust beneficiary.

Watch Out for These Traps

• Multiple applications — Each credit enquiry affects your score. Don't approach 5 lenders at once; use a broker to apply to the right one first.
• Cash out vs rate reduction — If you're accessing equity in the refinance, lenders assess this separately and it may reduce your options.
• Timing around tax lodgement — If your most recent tax return shows a dip, it may help to wait until the next one is lodged if income has recovered.

Can You Access Equity When Refinancing?

Yes — and for self-employed borrowers, this is often the motivation for refinancing. Common uses include: business investment, property purchase, renovation, or debt consolidation. Lenders will assess your ability to repay the increased loan amount.

Bottom Line

Self-employed refinancing is more document-heavy than standard refinancing — but the savings can be just as large. The right broker makes the process efficient, matches you to lenders who understand your income structure, and handles the paperwork.