Who this guide is for
Self-employed Australians currently on low doc loans wanting to know if they can refinance to better rates.
- Self-employed on low doc loan for 2+ years
- Now have full BAS and tax return history
- Property has grown in value, improving LVR
- Wanting to lower monthly repayments
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
Free low doc refinance chat
20-minute call about your current loan and documentation.
Compare mainstream lenders
We identify lenders that'll accept post-low-doc refinance.
Application + discharge
We coordinate refinance and existing loan discharge.
Save monthly
You move to standard rates with savings.
Frequently asked questions
When is the right time to refinance from low doc?
How much will I save by refinancing?
What documents will mainstream lenders need?
Will my property need re-valuation?
Can I refinance from conventional low doc to halal full doc?
Refinance from low doc to save
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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.