Lo-Doc Refinance for Self-Employed Borrowers

Why banks decline self-employed refinance applications

Banks want to see two years of tax returns, plus year-to-date profit and loss statements. For self-employed people, this is where things get tricky. If your business is growing, your tax returns are old. If your income is variable, the lender worries you might not be able to repay the loan in a slow month. If you've recently started a business, you don't have the return history they want. This is why lo-doc (low documentation) lending was created — to help self-employed people borrow without the paperwork banks demand.

The result is that many self-employed people get declined even though they're earning well and have home equity. Their current situation doesn't match their old documents, so the bank says no.

How private lenders look at this differently

Lo-doc lenders take a much simpler approach. They ask: What's your home worth? How much equity do you have? Can you show me through your bank statements that you're earning and can make the repayments? If the answer is yes, they'll refinance.

Bank statements tell the real story. If you're a graphic designer working for multiple clients, your bank statements show deposits from all those clients. If you're a tradesperson, the deposits show your work is steady. If your income varies, the lender can see the pattern over 6–12 months and understand the average. This is real, current information — much better than old tax returns.

Thinking about refinancing?

Tell us about your home and income, and we'll show you what's possible.

Describe Your Situation

What a typical deal looks like

Illustrative example — not a real case

A graphic designer has been running her own studio for 5 years. She's successful, earning $90,000–$130,000 a year depending on the season. She owns a $1.1 million home in Sydney with a $450,000 mortgage at 5.8%. She wants to refinance to a better rate, but her income varies month to month. Her accountant is still finishing last year's tax return, and it won't show her current earning level anyway.

A bank won't look at the application without this year's financials. But a lo-doc lender looks at her bank statements for the past six months and sees consistent deposits from her clients. They see she's managing her current repayments easily. Her home is worth $1.1 million and she's borrowing $450,000 — that's only 41% loan-to-value. They offer to refinance at 4.85% p.a., settled in 10 days.

Typical deal structure

Property type

Owner-occupied home

Loan purpose

Refinance to better rate/terms

Typical LVR range

Up to 95% of home value

Loan sizes

From $25K up to $80M

Loan term

From 1 month up to 30 years

Settlement speed

As fast as 24 hours, usually 1–3 weeks

Ranges shown are across our full panel of specialist lenders. Your deal may fall within a narrower range depending on the specifics.

What lenders want to see

For a lo-doc refinance as a self-employed person, focus on these:

Proof of identity. Your driver's license or passport. Standard for any loan.
Property valuation. Recent valuation or evidence of the home's value. This is your security for the loan.
Bank statements. Usually 3–6 months (or up to 12 if your income is very variable). This shows you're earning and managing money well.
Income evidence. This could be a letter from your accountant, a statutory declaration, business bank statements showing deposits, invoices, or anything else that proves your income. You don't need a full tax return.
Details of your existing mortgage. The lender needs to know what you currently owe and the terms.
Other debts. Credit cards, personal loans, car loans — anything else you owe. The lender wants the full picture.

When this might not work

Lo-doc refinancing works for most self-employed people, but there are limits:

You have almost no income evidence at all. Even a statutory declaration is better than nothing, but some income proof is needed.
You want to borrow more than 95% of the home's value. Most lenders won't go that high, especially for self-employed borrowers.
Your current mortgage is already in default or you have a record of missed payments. Lenders will be cautious.
The property has legal issues — a dispute with a neighbor, zoning problems, or building issues. These affect the property's value and make it riskier to lend against.

What our panel can offer for this scenario

Our panel includes specialist lenders who actively fund lo-doc refinances for self-employed borrowers. Across these lenders:

Loan sizes from $25K up to $80M
Rates starting from 4.99% p.a.
LVR up to 95% for owner-occupied homes
Terms from 1 month to 30 years
Settlement as fast as 24 hours
No requirement for two years of tax returns or recent financial statements
Coverage across all Australian states and territories

The exact lender and terms depend on your specific situation. Describe your property and income, and we'll match you with suitable lenders.

How to get a lo-doc refinance as self-employed

The process is simple:

Step 1: Describe your situation. Tell us what your home is worth, how much you owe, what rate you want to achieve, and what type of work you do. You don't need perfect information.
Step 2: Get matched with lenders. Our AI shows you which lenders on our panel are likely to refinance you, based on your property and income situation.
Step 3: Connect and move forward. You reach out to the lender, provide your bank statements and income evidence, and they give you an indication. Settlement usually follows within weeks or even days.

Common questions

Can I refinance my home loan without proving income?

Yes. Lo-doc lenders can refinance without requiring traditional proof of income like payslips or tax returns. They may ask for bank statements showing regular deposits, a statutory declaration of your income, or other evidence that you can afford to service the new loan. It depends on the lender and the deal.

What evidence of income do lo-doc lenders accept?

Lo-doc lenders accept many forms of income evidence: recent bank statements (showing deposits), a statutory declaration from you about your income, business bank statements, accountant letters, invoices, or even a combination of these. The key is showing genuine, ongoing income.

Am I eligible if my income varies a lot?

Yes. Self-employed people often have variable income, and lo-doc lenders understand this. They may ask for a longer period of bank statements (6–12 months instead of 3 months) to see the average income. As long as you can show you're earning and making repayments, lenders will consider it.

Can I refinance an investment property on lo-doc?

Yes. Lo-doc lenders will refinance investment properties as well as owner-occupied homes. The process is the same: they look at the property value, your equity, and your ability to repay. You may find slightly different rates or LVR limits for investment properties compared to home loans.

How long do I need to be self-employed?

It depends on the lender. Some will lend after 12 months in business, while others want to see 2+ years. If you're new to self-employment, mention this to the lender — they may work with you if you have other strengths in the application (strong property, low debt, etc.).