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Self-Employed • Low Doc & Alt Doc Home LoansLow Doc Home Loans Using an Accountant’s Letter
Self-employed and don’t have the usual financial statements ready? A low doc home loan may allow you to declare your income and support it with an accountant’s letter or other evidence accepted by the lender. I’ll help you understand the requirements for buying a home or refinancing.
Three things to get started
- Your business and income
What you do, how long you’ve been trading and your income after business expenses. - Your available document options
Self-declared income supported by an accountant’s letter or six months of business bank statements or six months of BAS statements. - Your property and loan plans
Your purchase price or property value, your deposit or equity if you are refinancing, and the amount you want to borrow.
Who could this suit?
- ✓Self-employed borrowers and sole traders
- ✓Business owners and company directors
- ✓Self-employed contractors and tradespeople
- ✓Borrowers without the usual current financial statements
- ✓Home buyers or existing owners looking to refinance
How an accountant’s letter can help
Some lenders accept an accountant’s letter as part of an alternative income verification pathway. It may help where the usual tax returns or financial statements are not available for the application.
The lender may require its own form and information about your business, your income and how long the accountant has acted for you. Requirements differ, so it’s best to check with your mortgage broker before asking your accountant to prepare a letter.
What is self-declared income?
Self-declared income is the income you state in your application or the lender’s financial declaration. For a home loan, declaring a figure does not remove the need for the lender to verify your financial position.
Depending on the lender, an accountant’s letter, lodged Business Activity Statements (BAS) or business bank statements may support the application. Additional information may still be requested.
Low doc home loans still require an assessment
“Low doc” is a common search term for home loans that use alternative income documentation. Many lenders call these alt doc home loans. They provide a different way to verify income for eligible self-employed borrowers.
The lender still considers your income, living expenses, existing debts, credit history, deposit or equity and the property offered as security. An accountant’s letter and a signed income declaration do not guarantee approval.
Documents you may need
- ✓Identification and details of your business structure
- ✓ABN and, where applicable, GST registration details
- ✓A completed income or financial position declaration
- ✓An accountant’s letter in the lender’s accepted format
- ✓BAS or business bank statements where required
- ✓Details of living expenses, loans and credit cards
- ✓Evidence of your deposit or existing mortgage statements
- ✓Property details or a contract of sale, if available
This is a starting checklist. Not every lender requires every document listed, and the periods covered vary by lender and application.
Deposit, rates and costs
There is no single deposit requirement or interest rate for every low doc home loan. Available options depend on your financial position, the property, the loan amount and the documents you can provide.
I’ll help you compare the applicable interest rate, fees, repayment structure and features. Where a standard documentation loan is available, that should be considered alongside any alt doc option.
Buying a home when you’re self-employed
Your income may come through a business rather than regular payslips. The first step is working out how that income can be documented and what repayments fit your financial position.
I’ll review the information available, explain the lender’s requirements and help you prepare an application for assessment.
Example scenario
A self-employed tradesperson wants to buy a home but does not have the usual current financial statements available. An alt doc lender may consider a financial declaration supported by an acceptable accountant’s letter, together with the other required application documents. Approval remains subject to assessment.
Refinancing with an accountant’s letter
If you already own a home, an alt doc loan may provide a refinance pathway where your current income can be supported using an accountant’s letter accepted by the new lender.
We’ll look at your existing balance, property value, repayment history and reason for refinancing, as well as the costs of changing loans.
Consider the full picture
A lower repayment does not always mean a lower total cost, particularly if the new loan extends your repayment term. I’ll help you understand the proposed structure before you decide.
Low doc accountant’s letter home loan FAQs
Can I get a home loan with only an accountant’s letter?
Yes, an accountant’s letter may be accepted as income documentation by some lenders.
Can I declare my own income?
Yes, some low doc loans allow self-declared income supported by an accountant’s letter. Your declared income needs to reflect your actual circumstances.
What if my accountant cannot provide a letter?
Other documentation pathways may be available, such as BAS or business bank statements. We can check which options fit the records you have.
How long do I need to have an ABN?
Minimum ABN, trading and GST registration periods vary between lenders. Tell me when your business started so I can check the relevant requirements.
Can I apply without current tax returns?
Yes, some alt doc or low doc loans let you apply without providing full tax returns, using alternative income documentation accepted by the lender.
Does an accountant’s letter guarantee approval?
No. The lender assesses the complete application, including affordability, credit history and the property. All lending is subject to eligibility and approval.
Plan your low doc home loan
Explore your borrowing capacity, estimate repayments with our home loan repayment calculator, or read about refinancing your home loan.
Discuss Your Low Doc Home Loan
Tell me about your business, how much you’d like to borrow and whether you’re buying or refinancing. Include the income documents you have available and whether your accountant can provide a letter. I’ll review your enquiry and explain the next steps.