Self-employed borrowers refinance on the same income evidence as a purchase: usually one or two years of tax returns and notices of assessment, or BAS, business bank statements or an accountant’s letter for a low doc loan. If your income has fallen since you last borrowed, the timing and the lender matter more than the rate.

Full doc and low doc refinancing compared
Item Full doc Low doc or alt doc
Income evidence Tax returns and notices of assessment, often two years BAS, business bank statements or an accountant’s letter
Typical maximum loan-to-value Up to 95% with mortgage insurance at some lenders Often up to 80%, and up to 90% with some lenders
Rate Standard pricing Usually higher
Who it suits Returns lodged and income steady or rising Returns not yet lodged, or income not yet showing in them

What income evidence will a lender use?

Most lenders want your last two years of personal and business tax returns with the matching notices of assessment. Some take one year, especially when the business has a longer track record. One major bank’s published self-employed policy, for example, accepts the latest two years of notices of assessment for loans up to 80% of the value, and may use one year of income for some applicants. The self-employed document checklist lists everything to gather, and the self-employed income calculator shows how add-backs change the figure.

Can you move from a low doc loan to a full doc loan?

Yes, and it is often the best refinance a self-employed borrower makes. Once your returns are lodged and show the income, a full doc loan can replace a low doc loan at a lower rate. On a $700,000 balance over 25 years, a low doc rate of 7.2% costs about $5,037 a month and a full doc rate of 6.0% about $4,510, a saving of $527 a month. The low doc home loans page covers when the low doc route still makes sense.

What if your income has dropped?

Lenders usually take the lower of the last two years, or an average, so one weak year can cut what you can borrow. Options include:

  • A like-for-like refinance that keeps the same balance; some lenders assess these more simply when the repayment falls.
  • A lender that reads your latest year, if it is the stronger one.
  • Waiting until a better year is lodged.
  • Asking your current lender to reprice, which needs no new income evidence; see asking for a better rate.

Does a tax debt stop you refinancing?

Not by itself. Lenders ask whether it is on a payment plan and whether repayments are up to date, and they count the plan as a commitment. The guide to a home loan with a tax debt covers what lenders accept.

Can you release equity when you refinance?

Usually, for an accepted purpose and within the lender’s limits; some alt doc products allow cash out up to 80% of the value. Business purposes need their own evidence. See cash-out refinancing and, if the money is for the business, using home equity for a business.

Questions people ask

Can I refinance with one year of tax returns?

Some lenders accept one year, often with a longer business history. A worked example is in self-employed with one year of financials.

Do I need my latest tax return lodged before refinancing?

Not always, but if the latest year is stronger, lodging it first can help. If it is weaker, the timing works the other way.

Will my accountant need to write a letter?

For low doc or alt doc loans, often yes. The accountant letter template shows what lenders look for.

Charles Touma works with self-employed borrowers and their accountants to choose the income evidence and the lender that read the business best. A free 30-minute call covers your returns, your current loan and the timing. General information only, not credit advice; lender policies and fees change, and your own figures decide what suits you.

Sources: Westpac, broker credit policy summary; Resimac, Prime Alt Doc product page; Moneysmart, switching home loans, checked 20 October 2026.

General information only, not credit, legal or tax advice. Your situation is assessed properly before any recommendation. Government scheme details change; figures are current at the time of writing.