Self-employed home loans:
Guide and expert tips

Person unloading tools from a vehicle outside a home, illustrating self-employed work and exploring Pepper Money home loan options.
Vasè Marcevska
Vasè Marcevska, Head of Direct Sales
Updated: 06 Jan 2026
Read time: 3 min

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  Loan options |   Eligibility |   Tips when applying |   Common mistakes

Self-employed borrowers face unique challenges. Running your own business comes with freedom and flexibility, but when it comes to applying for a home loan, it can feel like the odds are stacked against you. Traditional lenders often require extensive documentation and consistent income history, which doesn’t always reflect the reality of self-employment.

At Pepper Money, we understand that your income might look different, and we’re here to help make the home loan process more accessible.

Loan options: Full Doc vs Alt Doc explained

There are two main types of home loans available to self-employed borrowers:

Full Doc loan options

These require standard documentation like tax returns, financial statements, and proof of income.

Alt Doc loan options

Designed for self-employed borrowers with a strong credit history who use alternative documentation. Pepper Money’s Alt Doc option takes into account documents that better reflect the realities of running a small business -providing a flexible approach compared to outdated Low Doc loans. Each application is assessed in line with responsible lending requirements to ensure the loan is suitable for your individual circumstances.

Eligibility and documentation: What you need to apply

To be eligible for an Alt Doc loan with Pepper Money, you’ll need:

  • ABN registration for at least 6 months
  • GST registration for at least 6 months
  • A declaration of financial position, plus one of the following:
    • 6 months of business bank statements
    • 6 months of Business Activity Statements (BAS)
    • A Pepper Money accountant’s letter (eligibility criteria apply)

For more details, visit our Home loan application checklist. 

Tips to help improve your chances of being approved for a home loan

Here are some practical tips that may assist in strengthen your application:

Money bag icon with dollar sign representing boosting your deposit to improve home loan approval chances.

Boost your deposit

A 20% deposit could help you avoid Lenders Mortgage Insurance (LMI) and improve your loan-to-value ratio.
Stack of documents icon symbolizing keeping financial records accurate for home loan applications.

Keep financials up to date

Use accounting software to manage invoices, reconcile bank statements, and track cash flow.
Hand holding coin icon illustrating reducing personal debt to strengthen borrowing power.

Reduce debt

Paying off your personal loans and credit cards may help to improve your credit score and borrowing power.
Envelope icon representing transparency with lenders about income fluctuations for home loan approval.

Be transparent

Share any fluctuations in income with your lender. Pepper Money’s lending specialists understand the ups and downs of running a business.
Person icon with tie symbolizing working with a mortgage broker to navigate the home loan process.

Work with a broker

Working with a broker can help you navigate the process and present your application in the best possible light.

Common mistakes to avoid when applying for a home loan

Document icon with a profile symbol representing poor record-keeping that can delay home loan applications.

Poor record-keeping

Missing or inconsistent documentation can delay or derail your application.
Document icon with a dollar sign illustrating overcommitting on expenses when applying for a home loan.

Overcommitting on
inventory or expenses

Review your cash flow regularly and avoid tying up funds unnecessarily.
Credit score gauge icon showing the importance of checking and maintaining your credit history before applying for a home loan.

Ignoring your credit history

Check your credit history and address any issues before applying.

How Pepper Money could help

We’ve been helping self-employed Aussies for over 25 years. Here’s how we may be able to support you:

  • Flexible self-employed home loan options, including Alt Doc
  • Fast turnaround. Approvals in as little as 4-5 business days (if eligible)
  • Borrow up to 95% of the property value
  • Consolidate business debts or refinance for better cash flow.
Vasè Marcevska Pepper Money Head of Direct Sales – Mortgages and Personal

Contributor | Vasè Marcevska, Head of Direct Sales – Mortgages and Personal Loans

Vasè has over 16 years of experience in the Banking and Finance sector, specifically within the Third Party and Consumer lending industry. Her expertise now focuses on enhancing our Customer program through a deep understanding of mortgage origination and service excellence across our Financial products.
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Information provided is factual information only and is not intended to imply any recommendation about any financial product(s) or constitute tax advice. If you require financial or tax advice you should consult a licensed financial or tax adviser.

All applications for credit are subject to credit assessment, eligibility criteria and lending limits. Terms, conditions, fees and charges apply. 

Pepper Money Personal Loans is a brand of Pepper Money Limited. Credit is provided by Now Finance Group Pty Ltd, Australian Credit Licence Number 425142 as agent for NF Finco 2 Pty Limited ACN 164 213 030. Personal information for Pepper Money Personal Loans is collected, used and disclosed in accordance with Pepper’s Privacy Policy & the credit provider’s Privacy Policy.

Pepper Money Limited ABN 55 094 317 665; AFSL 286655; Australian Credit Licence 286655 (“Pepper”). All rights reserved. Pepper is the servicer of home loans provided by Pepper Finance Corporation Limited ABN 51 094 317 647. Pepper Asset Finance Pty Limited ACN 165 183 317 Australian Credit Licence 458899 is the credit provider for asset finance loans.

Pepper and the Pepper Money logo are registered trademarks of Pepper Group Assets (Australia) Pty Limited and are used under licence.

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