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South Asian self-employed refinance low doc to standard Australia
Quick Answer

Can I Refinance a Low Doc Loan to Standard Rates?

Mortgagefy Broker Team · Published · Last reviewed

Yes — after 2+ years of consistent self-employed income and clean repayments, you can typically refinance from low doc rates (0.3-0.7% premium) to standard rates.

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Who this guide is for

Self-employed Australians currently on low doc loans wanting to know if they can refinance to better rates.

The local picture

Many self-employed borrowers stay on low doc rates longer than necessary. Once you have 2+ years of full documentation, mainstream lenders should accept you at standard rates.

How Mortgagefy helps locally

Mortgagefy assesses if you're ready to refinance from low doc to standard. We compile your full documentation and identify the best mainstream lender.

Free advice.

How it works — 4 simple steps

1

Free low doc refinance chat

20-minute call about your current loan and documentation.

2

Compare mainstream lenders

We identify lenders that'll accept post-low-doc refinance.

3

Application + discharge

We coordinate refinance and existing loan discharge.

4

Save monthly

You move to standard rates with savings.

Frequently asked questions

We use offer letters and vesting schedules to value RSUs conservatively. We present current vesting value + projected future vesting as a 3-5 year income average. This gives lenders confidence in your income stability while accounting for market volatility.
Both. We work with W2 employees, 1099 contractors, and consultants. For contractors, we use 2 years of tax returns plus business financials. We have lenders who specialise in contractor income—they understand the variability.
Unvested options have zero value for refinancing. We count only vested equity. If you have a 4-year vest, we use 25% of the grant value (what's vested) plus a conservative projection of future vesting.
If you've been in your new role 6+ months, most lenders will refinance. We'll use your offer letter plus 6 months of pay stubs. If less than 6 months, it's harder but possible with specialist lenders.
Yes, if you have 2+ years of bonus history. We average the past 2 years and present it conservatively. Some bonuses get counted at 50% to be conservative with variable compensation.
ESPP is counted as deferred compensation. If your company matches or you have a discount, we value it as part of total compensation package.

Refinance from low doc to save

Free 20-minute call.

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Self-Employed Home Loan Requirements

ABN vs Sole Trader vs Company Director

Different structures get treated differently by lenders:

  • Sole trader: Personal tax return shows income directly. Simplest approval path.
  • ABN (contractor): Business income via tax return + BAS statements. 2-year history usually required.
  • Company director: Company tax return + personal salary (PAYG) assessed. Dividend income harder to prove.

Tax Add-Backs That Boost Borrowing Capacity

Lenders ADD BACK certain tax deductions to increase your effective income:

  • Depreciation (plant & equipment): $15k/year write-off → added back to income
  • Home office expense: $3k–5k/year → added back
  • Vehicle depreciation: Add back if business use >50%
  • Interest on business debt: Sometimes added back if it's refinanced separately

Example: You declare $80k income, minus $20k in deductions = $60k taxable. But lenders add back $15k depreciation + $4k home office = $79k assessed income. Big difference!

The 2-Year Rule Explained

Why 2 years of BAS/tax returns?

  • Year 1: New business — no history. Lenders see high risk (90% fail). Declined.
  • Year 2: Business stabilising. 2 years of evidence shows income is sustainable. Approved (most lenders).
  • After Year 2: 3+ years of consistent income = better rates, higher borrowing capacity.

Model your scenarios: Use our free home loan calculators to estimate borrowing capacity, repayments, and savings.