What lenders look for, which documents help, and when a low-doc option is worth considering.
Anthony Nocon
Founder and Mortgage Broker, Financeo
Published
7 October 2026
Last revised
11 November 2026
Reading time
6 min read
TL;DRIn a nutshell
✓Two years: most lenders want two years of tax returns and assessments.
✓One year: some lenders accept one year if you have industry experience.
✓Low-doc: BAS or accountant letters can work, usually at a higher rate.
✓Add-backs: depreciation and some expenses can be added back to your income.
What lenders ask for
Lenders want confidence that your income is stable. The documents depend on how long you've been trading and how your business is set up.
Documentation options
Full-doc
Alt-doc
Low-doc
Trading history
2 years
1 year
1 to 2 years
Main documents
Tax returns, NOAs
Latest return
BAS or accountant letter
Typical rate
Standard
Standard to slightly higher
Higher
How your income is assessed
Lenders start with your taxable income, then add back non-cash and one-off costs such as depreciation, interest on loans being refinanced and some super contributions.
Example income assessment
Net profit
From your tax return
$110,000
Add back depreciation
A non-cash expense
+$12,000
Add back one-off costs
If clearly non-recurring
+$8,000
Assessable income$130,000
Tips to strengthen your application
Keep your tax lodgements up to date, separate business and personal spending, and talk to your accountant before you lodge if you're planning to buy.
"Self-employed buyers often get knocked back by the wrong lender, not because of their income. Matching you to a lender that understands your business makes all the difference."
Anthony Nocon, Financeo
Common mistakes
01
Minimising income right before buying
Lower taxable income means lower borrowing power.
02
Late tax returns
Most lenders need your latest year lodged.
03
Mixing ATO debt
Undisclosed tax debt can stall an approval.
Quick self-check
Tick what applies to you. It's a rough guide, not an assessment.
Tick the boxes above to see where you stand.
Frequently asked questions
Yes. Some lenders accept one year of trading if you worked in the same industry before.
This article is general information only and doesn't take your circumstances into account. Lending rules, rates and thresholds change, so check current details or speak with us before acting.
About the author
Anthony Nocon
Founder and Director of Financeo. More than a decade in lending, including commercial, business, property and private banking roles at Commonwealth Bank.
What lenders look for, which documents help, and when a low-doc option is worth considering.
Anthony Nocon
Founder and Mortgage Broker, Financeo
Published
7 October 2026
Last revised
11 November 2026
Reading time
6 min read
TL;DRIn a nutshell
✓Two years: most lenders want two years of tax returns and assessments.
✓One year: some lenders accept one year if you have industry experience.
✓Low-doc: BAS or accountant letters can work, usually at a higher rate.
✓Add-backs: depreciation and some expenses can be added back to your income.
What lenders ask for
Lenders want confidence that your income is stable. The documents depend on how long you've been trading and how your business is set up.
Documentation options
Full-doc
Alt-doc
Low-doc
Trading history
2 years
1 year
1 to 2 years
Main documents
Tax returns, NOAs
Latest return
BAS or accountant letter
Typical rate
Standard
Standard to slightly higher
Higher
How your income is assessed
Lenders start with your taxable income, then add back non-cash and one-off costs such as depreciation, interest on loans being refinanced and some super contributions.
Example income assessment
Net profit
From your tax return
$110,000
Add back depreciation
A non-cash expense
+$12,000
Add back one-off costs
If clearly non-recurring
+$8,000
Assessable income$130,000
Tips to strengthen your application
Keep your tax lodgements up to date, separate business and personal spending, and talk to your accountant before you lodge if you're planning to buy.
"Self-employed buyers often get knocked back by the wrong lender, not because of their income. Matching you to a lender that understands your business makes all the difference."
Anthony Nocon, Financeo
Common mistakes
01
Minimising income right before buying
Lower taxable income means lower borrowing power.
02
Late tax returns
Most lenders need your latest year lodged.
03
Mixing ATO debt
Undisclosed tax debt can stall an approval.
Quick self-check
Tick what applies to you. It's a rough guide, not an assessment.
{{ checkMsg }}
Frequently asked questions
{{ f.a }}
This article is general information only and doesn't take your circumstances into account. {{ discText }}
About the author
Anthony Nocon
Founder and Director of Financeo. More than a decade in lending, including commercial, business, property and private banking roles at Commonwealth Bank.
