Self-employed? No worries

By Staff Reporter

A friend of mine who recently started her own personal training business said to me the other night she wouldn’t be able to get a home loan. I asked her why? Her business was doing well, wasn’t it? And she responded “because I am self-employed”.


But that’s where she was wrong. While self-employed borrowers may not be able to provide traditional evidence of a stable income ¬ – generally because their income fluctuates or they do not have up-to-date financials – there are still options available to them.

Low documentation lending, also known as low doc lending, refers to the mortgage options available to borrowers who don’t have the documentation, or employment stability, required to support a home loan application.

While the global financial crisis and the introduction of stricter credit laws have seen lender criteria for low doc lending tighten up, many lenders will still lend up to 80 per cent of a property’s value to the right candidate, and sometimes upwards to 95 per cent.

Low doc lending is generally riskier for lenders and they will often require you to take out lenders mortgage insurance, even if you’re only borrowing 60 per cent of the purchase price.  Low doc borrowers may also find themselves paying a higher interest rate than a full documentation borrower.

If you’re self-employed and keen to find out whether you will be eligible for a home loan it may be a good idea to visit a mortgage broker. A broker, who can offer you loans from a whole panel of lenders, will know which lenders offer low doc products, and which lenders’ criteria might be less strict than others.

Thank you.

Your enquiry has been sent to a local Aussie Mortgage Broker.

We will be in contact with you shortly.

error occurred.
Unfortunately Aussie cannot attend to your home loan related enquiry at this stage as you must be a citizen or permanent resident.
Do you need help finding the right loan for your investment?
What Aussie do for you:
  • Give expert mortgage advice to help you find great investment loan deals
  • Help you maximise return by lowering financing costs
  • Save you time and effort by helping with the paperwork
First name
Last name
Mobile Number
Are you an Australian Resident?
promoted stories

Top Suburbs

Highest annual price growth - click a suburb below to view full profile data:
BLUE BAY 49.18%
Self-employed? No worries
SPI logo