Self-Employed Home Loans | Low Doc & Alt Doc | Lagos Financial

A self-employed home loan is a mortgage designed for business owners, sole traders, contractors, and freelancers who cannot provide the standard PAYG income documentation that banks typically require. Self-employed borrowers make up a significant portion of Australian home buyers, yet many lenders make the process unnecessarily difficult. Lagos Financial specialises in finding the right lender for your situation.

Why Self-Employed Borrowers Face Challenges

Traditional lenders assess income using payslips and PAYG summaries. When you are self-employed, your income may fluctuate, be structured through a company or trust, or include legitimate tax deductions that reduce your taxable income — making it appear lower than your actual earning capacity. This is why having a broker who understands self-employed lending is critical.

Types of Self-Employed Home Loans

Full Doc (Standard Assessment)

If you have two years of tax returns and financial statements showing consistent income, many lenders will assess you like any other borrower. Your broker can identify lenders who use the most favourable income calculation method — some use an average of two years, others use the most recent year, and some “add back” certain deductions.

Low Doc Loans

Low doc loans require less documentation than standard applications. Instead of full tax returns, you may be able to use:

  • Business Activity Statements (BAS) — typically 6-12 months
  • Accountant’s letter confirming income
  • Business bank statements (6-12 months)
  • Self-declaration of income (with some lenders)

Low doc loans typically require a higher deposit (20-40% LVR) and may carry slightly higher interest rates, though the gap has narrowed significantly with specialist lenders.

Alt Doc (Alternative Documentation)

Alt doc sits between full doc and low doc. You provide alternative evidence of income such as BAS, bank statements, and an accountant’s letter, but the lender conducts a more thorough assessment than traditional low doc. Many mainstream lenders now offer alt doc products at near-standard rates.

What You Need to Qualify

  • ABN held for 1-2+ years — Most lenders require at least 12 months; some accept 6 months with strong evidence
  • GST registration — Required for most low doc and alt doc products
  • Clean credit history — Defaults or judgements significantly limit options
  • Sufficient deposit — 10-20% for full doc; 20-40% for low doc
  • BAS or bank statements — Showing regular business income

How Lagos Financial Helps Self-Employed Borrowers

With access to 60+ lenders — including specialist non-bank lenders — Lagos Financial can match your documentation and income structure to the lender with the most favourable policy. We help self-employed clients:

  • Identify which income calculation method gives you the best borrowing power
  • Add back deductions that reduce taxable income but do not reflect true earning capacity
  • Structure applications using company or trust income where applicable
  • Find lenders that accept 1 year of trading history when others require 2
  • Compare low doc, alt doc, and full doc options to determine which gives the best rate

Frequently Asked Questions

Can I get a home loan if I have only been self-employed for one year?

Yes, some lenders accept 12 months of ABN registration and BAS lodgements. Options are more limited than at 2+ years, but they exist — particularly with specialist non-bank lenders.

Do I pay a higher interest rate as a self-employed borrower?

Not necessarily. If you can provide full documentation (2 years of tax returns), many lenders offer standard rates. Low doc loans may carry a small premium (0.25-0.75%) but this varies significantly between lenders.

Can I use my company or trust income?

Yes, many lenders accept income from company or trust structures. The key is how the lender calculates the income available to you personally — some are far more generous than others. Your broker can identify the best option.

Get Expert Advice from Lagos Financial

With close to 20 years of experience and access to 60+ lenders, Victor Lagos and the Lagos Financial team can help you find the right loan for your situation. Book a free assessment or call us to discuss your options.

Our Services

Lagos Financial offers a full range of mortgage broking services across Australia:

We serve clients in Sydney, Bondi Junction, Brisbane, Launceston, and Australia-wide.

About the Author
Victor Lagos is a licensed mortgage broker (ACL 546774) and founder of Lagos Financial, with close to 20 years of finance industry experience since beginning his career at Bluestone Mortgages in 2006. A member of the Finance Brokers Association of Australia (FBAA) since 2015 and the Australian Financial Complaints Authority (AFCA — 98399), Victor helps Australians build wealth through tailored home loan and property investment strategies, working with 60+ lenders nationwide. Last reviewed: March 2026.

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