It’s hard to get a mortgage if you work for yourself and don’t yet have full financials. If you’re exploring a low-doc home loan option, (often called low-doc loans in New Zealand), there are still ways forward.
If you’ve recently started your business, you may also want to explore your options for getting a mortgage when self-employed for less than two years.
When you decide to work for yourself, it’s an exciting time. From being your own boss and setting your own hours to getting paid for the hard work you put in. But it can also mean making adjustments and sacrifices. One thing you don’t have to put off, though, is buying a home.
A low-doc home loan accepts alternative documentation (business statements, GST/IRD, invoices) instead of two full years of final accounts. It’s usually priced higher at the start. To understand how specialist lenders assess thede situations and when they may approve applications that banks decline, Non Bank Lending Guide for New Zealand borrowers.
A low doc home loan is a mortgage that allows borrowers to use alternative income documentation instead of full financial statements. This typicall includes business bank statements, GST returns, invoices or accountant letters. These loans are commonly used by self-employed borrowers who do not yet have two years of financials.
Main banks generally do not offer mortgages without the financials. The good news is, there are alternative options from some second-tier lenders. These lenders are commonly referred to as non bank lenders.
Non Bank lenders take on more risk when they give money to self-employed people who don’t have their final, signed by an accountant, end-of-year accounts. To make up for this risk, they charge a higher interest rate. These kinds of home loans can be great if you can afford the higher interest rates and want to get into the market right away. A low-doc loan can be useful if you can afford the higher initial pricing and want to get into the market now – with a plan to switch to bank pricing later.
James, an electrician in Auckland, has 12 months of trading with two builder contracts. He’s got a 20% deposit and clean accounts. A specialist lender accepted business statements + GST returns and approved a low-doc loan — priced higher at the start — with a plan to refinance to a bank after his next tax return.
Feature |
Low-doc (alt-doc) |
Full-doc (bank) |
|---|---|---|
Income evidence |
Alternative docs (statements, GST, invoices) | 2 years final accounts + IRD |
Pricing |
Higher initially | Lower (risk-based) |
Speed |
Often faster to decision | Can be slower |
Flexibility |
More lenient on income history | Strict documentation rules |
Exit plan |
Refinance to bank in 12–24 months | Already on bank pricing |
To qualify for a mortgage without full business financials, you need to have been trading for a minimum period of 6 months. A deposit of 20% is required.
You’ll refinance once you have the documentation banks want and your account conduct is tidy. Milestones typically include: one or two completed tax periods, consistent revenue, acceptable LVR, and stable outgoings. If you’re not sure whether a low-doc mortgage (sometimes marketed as low-doc homes in NZ) is right for you, we can talk you through the pros and cons. There may be many other options that could be suitable for your situation. We work with a number of reputable non bank lenders who can provide solutions that aren’t available through the mainstream banks. You can learn more about how these lenders work and the situations they can help with on our Non Bank Lending page.
Get in touch with us and we can let you know what’s possible.
Angela is an accredited Financial Adviser, licensed under FSP742251 and has been in the Financial Industry since 2006. Our 5-star Google reviews reflect the excellent customer experience we promise — making your home loan journey positive, stress-free, and rewarding. At Platinum Mortgages, our clients are the reason we exist — so you can be confident every step is guided by genuine care and expertise.
