Buying Your First Investment Property When You’re Self-Employed
Rental income strengthens your investment property loan application. Your tax return probably weakens it. We use lenders who weigh both properly, and we do not price you up for being a business owner.
SMSF Refinance Special – Limited Time Only
The maths your bank is not doing.
A bank takes your taxable income, adds around 80% of the expected rent, assesses the lot at a buffered rate well above the real one, and hands back a number that makes your first investment look impossible.
What it leaves out is everything your accountant legitimately deducted on the way to that taxable figure.
Depreciation. One-off purchases. Additional super contributions. Interest on debt being refinanced. Motor vehicle and non-cash expenses. Added back, these routinely lift an assessable income by tens of thousands of dollars.
Some lenders allow add-backs generously. Others allow almost none. Our mortgage brokers at Low Doc Loan Experts (LDLE) know which is which, and that knowledge is usually worth more to you than a rate comparison.
Where the deposit comes from
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Equity in a property you already own. The most common route. You can generally borrow up to 80% of its value less what you owe, and use that as the deposit without touching cash.
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Cash savings. Straightforward, and you will need more than an owner-occupier would because low doc investment lending typically caps at 80% of the purchase price.
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Where equity funds the deposit, we set it up as a separate split against the existing property rather than tying both properties to one lender. It takes slightly longer to arrange, but it keeps you free to sell or refinance either one on its own. That flexibility matters more than people realise at property two.
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Low doc, not overpriced
Investment lending is already priced above owner-occupier lending, and low doc adds another layer. Two premiums stacked on each other is where borrowers quietly lose thousands a year.
The spread across the low doc investment market is wide. Low Doc Loan Experts compares it properly and takes you to the lender that reads your profile most favourably, rather than the one with the easiest application.
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After 12 to 24 months of clean repayments, with current financials behind you, there is usually a path onto a mainstream investment product at a better rate. We structure your first loan so that the next step is simple rather than a full restart.
What we need to get you a number
Just three things.
If possible: A rough idea of the suburbs you are looking at
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Send those through, and our mortgage brokers will come back with a borrowing figure, an indicative rate and a clear yes or a not yet. No cost, no obligation.
01
Your registered business name
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Your ABN and trading history
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Income evidence (BAS lodgements, business bank statements, an accountant's declaration or a single year of financials)
We may also need details on your existing property and loan, if equity is funding the deposit. A rough target price and location are appreciated. That way, we can factor in the likely rent.
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​Our mortgage brokers will come back with a borrowing figure, an indicative rate and a shortlist of lenders who will take your profile. If a purchase is not achievable yet, we will tell you what needs to change and roughly how long it takes.
SMSF Refinance Special – Limited Time Only
Getting the accountant’s declaration sorted
An accountant’s declaration is straightforward in theory and awkward in practice.
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Accountants who do not work with alt-doc lenders often do not know which add-backs a lender will accept, so they understate what you earn. Others are reluctant to sign a generic bank form at all because signing carries liability they did not sign up for.
Both problems cost you borrowing capacity on an investment purchase, where every dollar of assessable income matters.
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At Low Doc Loan Experts, we remove that friction. We maintain an established network of qualified accountants who understand self-employed cash flow and how lenders read it. If you do not have an accountant, or yours will not sign off, we will introduce you to one who will.
Questions we get asked before the first call
Yes. Low doc investment lending is a standard product across several lenders, typically to 80% of the purchase price. The verification method changes, the purpose does not, and rental income is still taken into account in your assessment.
Deductibility depends on what the borrowed money is used for, not how your income was verified. Interest on funds used to buy an income-producing property is generally deductible on the same basis as any other investment loan. Confirm the details with your accountant, and we will give them the loan structure they need.
Lenders want evidence of consistent income rather than a particular profit figure, which is why bank statements and BAS lodgements carry so much weight. A business with steady turnover and a modest taxable profit is a very fundable application with the right lender.
Most low doc investment lending caps at 80% of the purchase price, with some lenders going higher for strong profiles. Your borrowing capacity is a separate question, and that is driven by your declared income, your add-backs and the rent.
Get a number you can actually buy with.
Our mortgage brokers will tell you what you can borrow, where the deposit should come from and what it will cost. No cost for the conversation and no obligation to proceed.