Refinancing to a One Doc Home Loan (2026)
One doc home loan refinance for self-employed borrowers – Switchboard Finance
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Self-Employed · Refinance · One Doc Verification
Refinancing to a One Doc Home Loan (2026)
You qualified for your current mortgage on full tax returns. Your business has grown since then — but your taxable income hasn't kept pace, because that's how smart tax planning works. A One Doc refinance lets a lender assess you on declared income instead, often unlocking a lower rate or equity you couldn't access before.
Quick Answer
A One Doc home loan refinance replaces your existing mortgage with a non-bank loan assessed on an accountant-certified income declaration rather than tax returns. Self-employed borrowers whose trading income has outgrown their taxable income often qualify for a better rate, higher borrowing capacity, or equity access that their current full-doc lender won't approve.
Why Your Current Lender Can't See Your Real Income
Most self-employed borrowers refinancing to a One Doc home loan aren't doing it because their finances are weak — they're doing it because their finances are structured efficiently. A business owner who maximises depreciation, pre-pays expenses, and runs income through a trust or company structure will show a lower taxable income than their actual earning capacity. That's good tax planning, but it creates a gap that full-doc lenders can't bridge.
Your existing bank assessed you on net taxable income from your last two tax returns. If those returns show $85,000 but your business actually deposits $220,000 a year into the trading account, the bank's serviceability model doesn't care — it only sees the $85,000. A self-employed home loan through the One Doc pathway assesses on your accountant's declared income figure, which reflects actual business performance rather than tax-minimised reporting.
This isn't a loophole. Non-bank lenders build their credit models specifically for self-employed borrowers. They accept higher risk in exchange for slightly higher rates, and they price that risk into the product. The RBA's current monetary settings mean the gap between full-doc bank rates and non-bank One Doc rates has narrowed — making a refinance more viable now than it was twelve months ago.
Five Triggers That Signal a One Doc Refinance
Not every self-employed borrower needs to refinance to One Doc. These five triggers indicate the switch will improve your position rather than just move your debt.
Your rate is above market because your last review used old tax returns
Banks re-assess on renewal using your most recent returns. If those returns show lower income than last time (because your accountant restructured), the bank may not offer a competitive rate — or may refuse to refinance at all. One Doc sidesteps the returns entirely.
You need equity access but your bank says you don't service
You know your business can support the additional borrowing. Your bank's serviceability calculator disagrees because it reads net taxable income. A One Doc lender assesses on declared gross income, which often restores the capacity your bank can't see.
Your fixed rate is about to expire and you're on a revert rate
Fixed-rate expiry is the cleanest refinance window — no break costs. If your revert rate is significantly above what a One Doc lender offers, refinancing before the next repayment cycle locks in the saving immediately.
Your ABN has crossed the 12-month or 24-month trading threshold
If your original loan was approved under a different entity or employment structure, your current ABN history may now qualify you for better One Doc terms. Most lenders require 12–24 months of BAS lodgement history as the baseline.
You're consolidating business debt into a single home loan structure
Self-employed borrowers often carry a mix of business credit — lines of credit, equipment finance, ATO debts. A One Doc refinance with equity release can consolidate these into a single lower-rate facility, reducing total monthly outgoings.
If two or more of these triggers apply, the refinance maths almost certainly works. If only one applies, it's still worth modelling — check your eligibility to see where you sit before committing to an application.
What Speeds Up or Slows Down a One Doc Refinance
A One Doc refinance settles faster when the file is clean and the documentation is pre-staged. It slows down — or stalls — when common preparation gaps force the lender's credit team to request additional information mid-assessment.
Faster Settlement
- Accountant's income declaration letter is ready before lodgement
- 12+ months of consecutive BAS lodged with ATO
- Clean 6-month business bank statement — no dishonours
- Current property valuation supports target LVR
- Existing lender processes discharge authority within 5 days
Slower Settlement
- Accountant delays the income declaration letter
- BAS lodgement gaps or overdue returns with ATO
- Multiple dishonours or unexplained large deposits in bank statements
- Property valuation comes in below expected — LVR exceeds cap
- Existing lender takes 10–15 days to issue discharge
The single biggest delay on One Doc refinances is the accountant's letter. If your accountant hasn't written one before, they may not know the lender's specific format requirements. Your broker can provide the template — make sure the accountant has it before the application is lodged. For more on what the accountant's letter involves, see the One Doc fit-and-avoid guide for business owners.
Break Costs, Discharge Fees and the Switch Maths
Every refinance has switching costs. The question is whether the ongoing saving exceeds the upfront cost within a reasonable timeframe — typically 12 to 18 months.
Discharge fee: Your current lender charges a discharge or settlement fee to release the mortgage. This typically ranges from $150 to $400 depending on the lender and state. It's unavoidable on any refinance.
Break costs (fixed-rate loans only): If your existing loan has a fixed component that hasn't expired, the lender calculates break costs based on the difference between your contracted rate and the prevailing wholesale rate, multiplied by the remaining term and balance. In a rising rate environment, break costs can be minimal or even zero. In a falling rate environment, they can run into thousands. Your broker should request a formal break cost estimate from the outgoing lender before you commit.
Government fees: Mortgage registration and discharge fees vary by state. In most states, expect $150–$350 for the discharge of the old mortgage and $150–$350 for registration of the new one. Some states charge stamp duty on the new mortgage — though most self-employed refinances into alt doc structures fall under existing duty exemptions for refinance-only transactions.
The maths shifts if you're also accessing equity. A refinance that simultaneously releases $80,000 in equity for business purposes — say, covering a business loan consolidation — may carry a slightly higher rate than a straight rate-switch refinance, but the total cost of capital drops because you're replacing higher-rate business debt with lower-rate secured residential debt. For borrowers whose LVR sits comfortably below 80%, this is often the most efficient structure.
Who This Works For and Who Should Wait
A One Doc refinance is strongest for self-employed borrowers who have been trading for at least 12 months, have consistent BAS lodgement history, and can demonstrate that their business income comfortably covers the proposed repayments. It works particularly well for tradies, medical professionals, and property developers whose income structures create a gap between taxable income and actual earning capacity.
You should wait if your ABN is under 12 months old, if your most recent BAS quarters show declining revenue, or if your current low doc or alt doc rate is already competitive. A One Doc refinance where the rate saving is less than 0.25% rarely justifies the switching costs — the payback period stretches beyond two years and you're better off renegotiating with your current lender.
If you've been declined on a One Doc application before, a refinance may still be viable if the decline reason has been resolved. Common fixes include clearing an overdue ATO payment plan, lodging missing BAS quarters, or increasing equity through property value growth. For an overview of what separates a strong One Doc file from a weak one, see the 3 myths about One Doc home loans guide. You can also explore the full range of One Doc structures across the business owners finance hub.
When a One Doc Refinance Doesn't Stack Up
A One Doc refinance is the wrong move when the switching costs outweigh the ongoing saving. If your current variable rate is within 0.20–0.25% of the best One Doc rate available, the payback period on discharge fees, government charges, and application costs stretches beyond two years — and rate movements during that window can erase the saving entirely. In that scenario, renegotiating your existing rate with your current lender is the faster, cheaper path.
It also stalls when the numbers don't fit. If your current loan balance sits above 80% of the property's valuation, most non-bank One Doc lenders won't approve the refinance without you bringing cash to settlement. Borrowers whose ABN history is under 12 months face the same wall — the low doc lender panel thins dramatically below that threshold, and the rates on offer may actually be higher than what you're paying now. Similarly, if your most recent BAS quarters show declining revenue, lenders will either decline or apply heavy rate loading that defeats the purpose of switching.
There's also a timing consideration. If your fixed rate expires within three to six months, waiting for expiry avoids break costs altogether and gives you a cleaner refinance window. Borrowers who've recently changed business structure — moved from sole trader to company, or set up a new trust — should also wait until the new entity has at least two BAS quarters lodged before applying. Rushing the application with incomplete trading history under the new structure is the most common reason One Doc refinances stall at credit. For a broader look at what separates a viable application from a premature one, see the One Doc for multiple revenue streams guide.
Refinancing to a One Doc home loan works when your business income has outgrown what tax returns show. If your current lender assesses on net taxable income and you're paying a rate that reflects that limited view, a non-bank One Doc refinance lets the lender see your actual earning capacity — often resulting in a lower rate, better equity access, or both. The switching costs are real but recoverable within months on most files.
Key takeaway: The rate you're paying now was set on the income your bank could see — not the income your business actually generates. A One Doc refinance closes that gap.Frequently Asked Questions
Some non-bank lenders accept 12 months of ABN history on a One Doc refinance, provided you can show consistent BAS lodgement and a clean repayment history on your existing mortgage. The rate will typically be higher than a 2-year ABN applicant, and LVR caps are usually tighter (65–70% vs 80%). Your broker can identify which lenders accept shorter trading history for refinance applications specifically.
A One Doc refinance typically settles in 3–5 weeks from lodgement. The timeline depends on valuation turnaround, how quickly your existing lender issues a discharge authority, and whether the new lender's credit team requests additional documentation. Having your accountant's letter, 12 months of BAS, and business bank statements ready before lodgement can shave a week off the process.
If your current loan has a fixed-rate component that hasn't expired, you will incur break costs. These are calculated based on the difference between your contracted rate and the current wholesale rate, multiplied by the remaining fixed term and loan balance. Break costs can range from a few hundred dollars to tens of thousands depending on how far rates have moved. Your broker should model break costs against the projected savings from the new One Doc rate before you commit. See the One Doc for manufacturers guide for an example of how break cost modelling works on a refinance file.
Most non-bank lenders cap One Doc refinance LVR at 80% for strong applications — meaning you need at least 20% equity in the property. Some lenders extend to 85% with a higher rate loading. If your current loan balance is above 80% of the property's current valuation, you may need to either bring cash to settlement or wait until property growth or principal repayments bring the LVR down. For a full explanation of how lenders calculate this figure, see the self-employed home loan glossary entry.
Not exactly. One Doc is a specific product that assesses borrowing capacity on a single accountant-certified income declaration — one document. Alt doc is a broader category that can include BAS-based verification, self-declared income with bank statement analysis, or multiple alternative documents. A One Doc refinance uses the simplest form of alt doc verification. The distinction matters because some lenders advertise alt doc but require three or four documents. One Doc means exactly that — one. See also the low doc loan glossary entry for how the broader low doc category compares.
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