Specialist and non-conforming home loans

Mainstream banks typically require two or more years of self-employment history. Specialist lenders take a more flexible view. Some will consider applications with as little as six months of ABN activity, and others assess even less where the business income is well-evidenced. You'll generally need a minimum 15% deposit, and the rate reflects the additional risk the lender takes on. Alt-doc and low-doc options mean you may not need full tax returns at all. I'll give you an honest assessment of which lenders are realistic options for your specific situation.

For full-doc lending, lenders typically require two years of tax returns and notices of assessment, ABN registration, recent business and personal bank statements, and standard identification. For alt-doc or low-doc applications, this is replaced by an accountant's declaration of income, BAS statements, or business bank statements, with no full tax history required. Some specialist lenders accept a 1-day GST registration alongside strong business bank statement evidence. Requirements vary by lender and loan structure. I advise on the right approach upfront so you only gather what's actually needed.

It depends on the nature and recency of the credit issue. Many specialist lenders will consider applications with defaults, missed payments, or even a prior bankruptcy, assessing your current position rather than just your history. Some offer unlimited debt consolidation, including ATO debts, as part of the loan structure. Bankruptcies are generally assessed from the date of discharge, and some lenders have dedicated "Specialist" product tiers for borrowers still rebuilding. If your credit issues arose from temporary hardship that has since resolved, there are often more options available than you might expect. I'll assess your file and give you an honest picture of what's realistic.

Specialist and non-conforming loans typically carry a rate premium over standard products. Self-employed full-doc lending is usually 0.25–0.75% above standard rates. Low-doc lending is typically 0.5–1.5% above. Bad credit lending varies more widely, typically 1–3% above standard depending on the severity and recency of credit issues. The premium exists because lenders take on additional risk and do more work to assess non-standard applications. For most borrowers, the ability to secure a loan at all, and to build a credit record that enables refinancing to a standard lender in 12–24 months, makes the short-term premium worthwhile. I always present the full cost picture so you can make an informed decision.

Yes, and this is often the strategy. Many specialist loans are used as a stepping stone: you secure the property now, build a track record of on-time repayments, let your credit file improve or your business history lengthen, and then refinance to a mainstream lender at a lower rate, typically 12–24 months later. I stay in contact with clients over time and proactively flag when refinancing to a standard product becomes viable. The specialist loan gets you into the market; the long-term plan is to move to competitive mainstream rates when you qualify.