What is a low doc home loan?

A low doc loan uses alternative income evidence — BAS, business bank statements or accountant's declaration — instead of full tax returns. It's designed for self-employed Australians whose returns don't reflect their real cash flow.

How much deposit do I need for a low doc loan in Sydney?

Most low doc lenders require 20% deposit (80% LVR). Some will go to 85% LVR with LMI added. With Sydney property at $700K-$1.5M that's typically a $140K-$300K deposit.

Are low doc rates higher than full doc?

Yes — usually 0.3-1.0% higher than a prime full doc rate. After 12-24 months of repayment history many borrowers refinance to a full doc loan at a sharper rate. We plan that exit at the start.

Can I use BAS only without tax returns?

Some specialist lenders accept 12 months of BAS as the primary income evidence. Others want BAS plus business bank statements. The right combination depends on your business type and the lender.

Will I be approved with one bad year?

If most of your trading shows healthy cash flow, one weak quarter or year is often manageable. We'll model your application before submission so there are no surprises.

Low Doc Refinancing | Mortgagefy

Who this guide is for

Sole traders and partnerships whose tax returns understate cash income
Company directors who pay themselves a low salary for tax efficiency
Cash-business owners (cafes, restaurants, trades) with strong BAS but messy returns
Self-employed Sydney buyers who've been declined by banks for insufficient documentation

The real challenge

The standard home loan requires 2 years of personal and business tax returns plus an ATO portal sign-off. For many self-employed Australians the returns understate the real cash position because of legitimate deductions, depreciation and add-backs.

When the loan is assessed only on the bottom line of those returns the borrowing capacity ends up far below the actual capacity of the business — and a big bank says no.

How Mortgagefy helps

A low doc loan changes the income evidence: 6-12 months of BAS, 6 months of business bank statements, or an accountant's declaration of income. Specialist lenders treat the business cash flow as the primary signal — not just the taxable bottom line.

We've helped Sydney sole traders, company directors and cash-business owners qualify for low doc loans across a range of suburbs and price points. We'll tell you upfront whether low doc is the right fit or whether full doc gets you more.

How it works — 4 simple steps

Income review

We look at your BAS, business banking and accountant relationship to assess which low doc structure suits.

Lender shortlist

Specialist lenders treat low doc differently — we shortlist 2-3 that match your profile and Sydney property type.

Document pack

Compile BAS, bank statements, accountant letter, ID and deposit evidence in the format the chosen lender expects.

Settlement

Application lodged, valuation ordered, conditional approval typically within 5-10 business days. Settlement in 4-6 weeks.

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.

Get a free Sydney low doc assessment

We tell you honestly whether low doc is the right fit — and what your real borrowing capacity looks like with each lender option.

Start Your Free Assessment Call 0432 634 648

Get your personalised answer in 2 minutes

Free, no obligation. We'll match you with the right lender for your situation.

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

Low Doc Home Loans for Sydney Self-Employed Borrowers