What’s changed, and why it’s getting easier for self-employed borrowers to get a loan
Being your own boss has its perks, flexibility, autonomy, and the freedom to grow something that’s yours. But when it comes to applying for a home loan, it can be a lot of work.
For many self-employed Australians, the idea of getting a mortgage can feel daunting. Not because you’re not earning enough, but because traditional lending systems aren’t designed to recognise how you earn. The good news? That’s changing.
In 2025, more lenders are offering smarter, more flexible home loan options that look at the full picture, not just a payslip.
Why Self-Employed Borrowers Can Struggle with Traditional Loans
Some lenders’ home loans rely heavily on standard documentation, payslips, tax returns, group certificates. But if you’re a sole trader, freelancer, or small business owner, your finances might not line up in neat little boxes.
Maybe your income is seasonal. Maybe you invoice in irregular chunks. Or maybe you’ve only recently gone out on your own and don’t yet have two years of tax returns.
None of that makes you a risky borrower. But it can make a full documentation application process tougher than it needs to be.
Home Loans in 2025
Lenders are starting to recognise that income looks different in today’s economy — and Alt Doc home loans are a big part of that shift.
What’s Alt Doc?
Alt Doc (short for “alternative documentation”) allows you to verify income without needing a full suite of tax returns or financials. Instead, you can provide:
- Business Activity Statements (BAS)
- 6–12 months of business bank statements
- An accountant’s letter confirming your income
Alt Doc is a more flexible solution that considers your financial situation more holistically than a traditional full doc option.
What Home Loans Can You Get Without Traditional Income?
Being self-employed doesn’t mean fewer options and it certainly doesn’t mean settling.
With the right lender, self-employed borrowers can still access many of the same products:
- Variable rate loans: A great option if you want flexibility through interest rates that move with the market.
- Refinancing options: Self-employed brokers can refinance more easily with an Alt Doc loan, meaning you won’t have to jump through the usual hoops to lock in a better rate.
It’s no longer about trying to fit a square peg into a round hole. It’s about finding a product that fits you.
Make Your Application Work for You
An alt-doc or low-doc loan with a non-bank lender like Bluestone will save you a lot of work overall. Still, there’s a little preparation you’ll want to cover to make sure you’re approved.
To put your best foot forward, remember to:
- Get your docs in a row! Nothing slows things down like a messy paper trail. Get your BAS, bank statements or accountant’s letter ready early to avoid unnecessary delays.
- Check your figures! Look at your loan-to-value ratio (LVR) — it affects how much you can borrow and whether extra costs like LMI apply. A little homework now will save you a headache later.
- Reach out early! A broker or lender who understands self-employed income can help you avoid mistakes and set things up right from the start. Don’t wait until you’re under pressure, ask the questions now.
Ready to apply?
Whether you’re looking for a new loan or to refinance, you might be in a much stronger position than you know.
At Bluestone, we assess income a differently. You don’t need to tick every traditional box. You just need the right support and a lender that understands the shape your income takes.
If you’re a self-employed borrower, we can help you find a home loan that works for you. Start by speaking to your broker today.
Terms and conditions and lending criteria apply. All applications are subject to assessment.
The information provided in this article is general in nature and is not intended to be financial advice. We always recommend you seek your own, independent financial advice which can take into consideration your specific circumstances.
