Company Director Mortgage Options: Which Home Loan Path Fits?
Company director mortgage options compared: how full doc, low doc, one doc and private lenders read your wage, dividends and company profits.
Business Owners
Company Director Mortgage · Income Paths · One Doc
If your company made a good profit but you paid yourself a modest wage, which lender sees the real income? Full doc, low doc, one doc, private banking and private lenders each read a director's file differently. Here is how to match the path to the way you are paid.
Quick Answer
A company director can borrow for a home through a full doc bank loan, a low doc or alt doc loan, a one doc home loan, a bank's private banking division or a private lender, and the right one depends on how you pay yourself. Directors on a steady wage with lodged returns usually suit full doc. Directors who leave profits in the company, or who are behind on lodging, often fit low doc or one doc better. Private lenders suit a short deadline with a clear exit. Read the self-employed home loan guide for how income is assessed in general.
Also called: home loan for company directors, director home loan, Pty Ltd director mortgage. Same borrower; "company director home loan" is simply how lenders and brokers label the file.
What mortgage options does a company director have?
A company director has five broad home loan paths, and each one reads the same business differently. How you pay yourself decides the path more than the size of the loan does.
- Full doc bank loan. Personal and company tax returns, financial statements and notices of assessment. Usually the sharpest pricing, but the lender reads what has been lodged, not what the business is doing today.
- Low doc or alt doc loan. A low doc loan verifies income with BAS, business bank statements or an accountant's letter instead of full returns. Pricing is typically a little higher and the maximum LVR typically a little lower, varies by lender.
- One doc home loan. A one doc home loan is assessed on a single income document. It suits directors whose returns are late or whose taxable income understates the business.
- Private banking. A major bank's private banking division may take a wider view of business wealth for clients with high income or assets; what it asks for in return is set out in private banking mortgages. Larger loans are covered in the guide to self-employed home loans over $2 million.
- Private lender. Private lending is short term, priced well above bank rates and lent mainly on the property and the exit. It suits a deadline, not a long-term home loan.
The rest of this insight is the decision: how each path reads director income, which director fits which path, and what can push a good file into the wrong one.
How does each home loan path read a director's income?
Each path counts a different slice of what a director earns, which is why two lenders can quote very different borrowing power on the same file. The table shows how each path reads director income across the six ways a director is usually paid. Treat every cell as indicative; policy varies by lender and changes often.
| Income type | Full doc bank | Low doc or alt doc | One doc | Private lender |
|---|---|---|---|---|
| Director wage | Counted from payslips, returns and notices of assessment | Counted, usually inside the business turnover read | Covered by the single document and declaration | Secondary; the security and exit lead |
| Dividends | Typically counted once they appear in lodged returns | Read through the business figures rather than separately | Covered by the declaration, varies by lender | Rarely central |
| Retained company profits | Some lenders add your share of company profit where you own the company; many do not | Often seen through BAS turnover and bank statements | Can be reflected where the document shows trading strength | Rarely central |
| Trust distributions | Typically counted if received consistently over two years | Read through the trading business, varies by lender | Assessed case by case | Rarely central |
| Add backs | Depreciation, interest and one-off costs, varies by lender | Partly, often via an accountant's letter | Not usually itemised | Not used |
| Loan account drawings | Usually excluded as income | Usually excluded | Usually excluded | Not used |
The row that moves most between paths is profits left in the company. A full doc bank reading only your personal return may never see them; a low doc or one doc lender may see the business behind them. How retained earnings work on a one doc file is covered in one doc home loans and company retained profits, and the add back side in the owner wage add back. How sole trader, company and trust income is assessed in general sits in the self-employed home loans guide linked above.
Which home loan path fits which director?
The path that fits is the one whose evidence matches how you are actually paid and how current your paperwork is. From the underwriter's seat, the question is never "is this director good for it?" in the abstract; it is "can I prove it with the documents this product allows?"
- Two years of financials lodged and a healthy wage? Start with full doc. The wage carries serviceability and the returns back it up.
- One year of trading, or lumpy profits? Some lenders will accept one year of financials, varies by lender, usually with a lower LVR or a pricing loading. Low doc or alt doc is the common landing spot.
- A modest wage, most of the profit left in the company? A one doc or low doc lender that reads the business often sees more than a full doc bank reading your personal return alone.
- Strong wealth, complex structures, a large loan? A bank's private banking division may read the whole group. It is still bank credit with bank policy underneath.
- A settlement date the bank cannot meet? A private loan can bridge the gap, but only with a written exit back to a bank or specialist.
Moving later from one doc to full doc, once returns are lodged, is common; the timing is covered in when to refinance a self-employed home loan.
What documents does a director need for each path?
Each path asks for a different evidence pack, and a director usually needs both personal and company documents because the lender is reading two balance sheets. The typical pack for each path looks like this, varies by lender:
- Full doc: personal and company tax returns, company financial statements, personal notices of assessment, recent payslips if you draw a wage, and ID.
- Low doc or alt doc: recent BAS, business bank statements, an accountant's letter and a signed income declaration.
- One doc: one of BAS, business bank statements or an accountant's letter, plus the declaration.
- Private lender: a valuation, the contract or security details and a written exit strategy; income evidence is lighter but still asked for.
If your income runs through a trust, expect the trust deed and the trust's returns as well. When an accountant's letter is knocked back, the usual causes and fixes are in accountant letter rejected.
How do director guarantees, company debt and a director penalty notice affect a director's own home loan?
Guarantees, company debt and a director penalty notice can all reduce what a director can borrow personally, because lenders treat them as exposure that could land on you. A director's guarantee on company equipment finance, a lease or a business loan is often counted as a personal liability, either in full or as a share of the repayment, varies by lender. On the files that cross our desk, that single line has cut borrowing power more often than any income question.
A director penalty notice is more serious. The ATO says a DPN is a notice it must give before it can take action to recover director penalties, and the 21 days run from the day the notice is posted or left at your ASIC-registered address. At the time of writing, the penalty can be remitted within those 21 days. If the company reported its PAYG withholding or GST within 3 months of the due date, or lodged its super guarantee charge statement on time, that can be done by paying in full, appointing an administrator or small business restructuring practitioner, or winding up. If it reported late, the penalty is locked down and can only be remitted by paying the company liability in full. See the ATO's director penalty regime page for the current rules.
A lender who sees an unresolved DPN will usually pause a bank application. Payment plans are covered in a payment plan for a director penalty notice, guarantee release in the director's guarantee guide, and the one doc angle in one doc home loans and director guarantees. Whether a guarantee or DPN exposes your home is a question for your solicitor.
How can a company director improve home loan borrowing power?
A director can usually improve borrowing power by making the income a lender can see match the income the business actually produces. The levers are mostly timing and paperwork, and most need your accountant.
- Review the wage and dividend mix. A higher wage or regular dividends show up on a personal return; profit left in the company may not, on a full doc read.
- Lodge the latest returns. A full doc lender typically works from the most recent lodged year. A strong year sitting unlodged does not count.
- Clean up the director loan account. Large drawings or a debit balance raise questions on the file and can carry tax consequences.
- Close or reduce guarantees you no longer need. Each live guarantee can weigh on serviceability.
- Pick the path for the year you are in. One year of financials, varies by lender, may suit low doc now and full doc after the second year lodges.
How you pay yourself is a tax decision first. Change the structure with your accountant, then choose the loan path that reads it.
Where should a director start?
A director should start by matching their latest lodged figures and their actual pay to the path that reads both, then checking guarantees and tax before any lender sees the file. As a company director, you are assessed as a person and as the business behind you.
Stronger fit
- Returns lodged and current
- A steady wage or regular dividends
- Guarantees listed and explained
- No ATO debt, or a plan in good standing
- One path chosen to suit the paperwork
Gets tricky
- Most profit left in the company, tiny wage
- Returns a year or more behind
- Undisclosed guarantees on company debt
- An unresolved DPN
- Large director loan account drawings
If the full doc read undersells you, a one doc home loan is often the next place to look. If a deadline is the problem, private lending can buy time with a planned exit. More director and owner guides sit in the Business Owners Hub, and you can check eligibility before any lender pulls your credit file.
Company director mortgage options come down to one question: which path reads the income you actually earn? Full doc rewards a steady wage and lodged returns. Low doc and one doc read the business when profit stays in the company or returns are behind. Private banking suits strong wealth and large loans, and private lending suits a deadline with an exit. Guarantees and a DPN can shrink borrowing power on any path, so deal with them first.
Key takeaway: match the loan path to how you pay yourself and how current your returns are, and clear guarantees and ATO issues before you apply.Frequently Asked Questions
Company directors in Australia can choose between a full doc bank loan, a low doc or alt doc loan, a one doc home loan, a bank's private banking division and a private lender. The right one depends on how you pay yourself and how current your lodged returns are. A director on a steady wage usually suits full doc, while a director who leaves profits in the company often suits low doc or one doc.
A director's guarantee can affect your home loan because many lenders count the guaranteed company debt as a personal liability. Some count the full limit and some count a share of the repayment, varies by lender. List every guarantee up front; the director's guarantee guide covers how they work and how release is handled.
A company director can often get a home loan with one year of financials, varies by lender, usually on a low doc loan or alt doc path rather than full doc. Expect a lower maximum LVR or a pricing loading compared with a two-year full doc file. Once the second year is lodged, refinancing to full doc is a common next step.
Dividends a director receives from their own company usually count as income for a home loan once they appear in lodged personal tax returns. Full doc lenders typically want two years of consistent dividends, while low doc and one doc lenders read the business behind them. How self-employed income is assessed in general is covered in the self-employed home loans guide.
Getting a home loan when your company has a director penalty notice is possible in some cases, but most bank lenders will pause until the notice is resolved. A DPN can make you personally liable for certain company tax debts, so lenders treat it as your exposure. A paid DPN or a payment plan in good standing reads far better than an open one; speak to your solicitor about the personal risk.
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