Self Employed Home Loans
At Best Foot Forward Mortgage Solutions, we pride ourselves on being able to access the best possible loan option for your current situation. Often, if you are self-employed, you can face a few challenges; as self-employed Mortgage Brokers, we understand your situation and can help you buy your property and grow your portfolio.
Many lenders offer tailored self-employed home loans, including full-doc, low-doc, and alternative verification options to suit different financial situations.
1. Full-Doc Home Loans (Preferred Option as they usually have a lower interest rate)
✅ Suitable for self-employed borrowers who can provide complete financial documentation, including tax returns and financial statements.
✅ Offers the best interest rates and terms, similar to standard home loans.
Required Documents:
Personal & business tax returns (usually last two years)
Notice of Assessment from the ATO
Business financial statements (Profit & Loss, Balance Sheet)
BAS Statements (in some cases)
2. Low-Doc Home Loans (For Those With Limited Financials)
✅ Designed for self-employed borrowers who cannot provide complete financial documentation.
✅ Requires alternative proof of income but usually comes with higher interest rates.
Accepted Income Verification:
BAS Statements (usually last 12 months)
Business bank statements
Accountant's declaration
In some cases, lender-approved income declarations
🔹 Who Offers Low-Doc Loans?
Specialist lenders (e.g., Pepper Money, Liberty, Bluestone).
Some major banks also provide low-doc options but with strict criteria.
3. Alt-Doc or Specialist Loans
✅ Available for self-employed borrowers with irregular income, short trading history, or credit issues.
✅ More flexible but with higher interest rates and lower loan-to-value ratios (LVRs).
✅ Lenders may accept shorter trading histories (e.g., 6–12 months instead of 2 years).
🔹 Best For:
Recently self-employed individuals (less than two years in business).
Borrowers with tax debts or unusual income structures.
People with previous credit issues.
Loan-to-Value Ratio (LVR) & Deposit Requirements
Full-Doc Loans: Up to 95% LVR (5% deposit) with LMI or 80% LVR (20% deposit) without LMI.
Low-Doc Loans: Usually up to 80% LVR, but some lenders may allow 85-90% LVR with LMI.
Specialist Loans: Typically capped at 75-80% LVR.
Tips for Self-Employed Borrowers
✅ Keep Financials Updated – Lenders prefer recent tax returns & clear records.
✅ Separate Business & Personal Finances – Avoid mixing income sources to improve loan approval chances.
✅ Reduce Business Expenses (If Possible) – Lower taxable income can affect borrowing power.
✅ Consider Using an Accountant – Helps prepare documents in line with lender requirements.
✅ Work With a Mortgage Broker – Brokers can help find lenders with flexible self-employed policies.