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Updated October 2026 · General information for self-employed Australians.

You've been in business for years. You pay your bills, you invoice on time, your accountant likes you (mostly). So surely a nice letter from that accountant saying "yes, this person earns plenty" should be enough for a home loan? It's a fair question, and the answer is a little more nuanced than a letter and a handshake: usually not on its own, and importantly, with 3+ years of trading you probably don't need to go down that road anyway.

The short answer

An accountant's letter or declaration is a supporting document, not a magic key. Most lenders that accept one use it together with other evidence, such as Business Activity Statements (BAS), business bank statements and an ABN that has been active for a minimum period. Only a small number of lenders will consider a letter as the main proof of income, and those are generally specialist low-doc lenders with stricter conditions.

And here's the twist: because you've been self-employed for three years or more, you likely qualify for a full-documentation loan using tax returns and financials, which typically offers better rates, higher borrowing limits and lower deposits than low-doc loans.

What is a low-doc loan?

A low documentation (low-doc) loan is designed for self-employed borrowers who can't easily provide standard documents such as two years of tax returns. They're sometimes used when returns haven't been lodged yet, income is irregular, or the business is newer. According to published industry guides, typical requirements include:

In Australia, "no doc" (self-declared income with nothing to back it up) is generally not available through mainstream lenders. After the introduction of responsible lending laws in 2010, ASIC's review of low doc lending found lenders have tightened practices and now commonly obtain business bank statements and letters from accountants to verify income. In other words, the days of a signed statement saying "trust me" are over.

What does the accountant's letter need to say?

Lenders vary, and some use their own form. Generally the letter should include:

Not every accountant will sign these, and not every lender accepts every accountant (some need a CPA, CA or Tax Practitioner registration). Ask your accountant early. If an accountant won't sign because the income isn't as high as you'd like, treat that as a useful signal, not an obstacle.

Low-doc vs full-doc: how they compare

When a low-doc loan still makes sense

Checklist: self-employed 3+ years, deciding the pathway

A little humour

An accountant's letter is like a character reference: very helpful, usually appreciated, and almost never accepted instead of showing up with your actual paperwork. (Though your accountant's reference may well be nicer than your mum's.)

Official links

Disclosure and Disclaimer

This article is general information only and is not financial, credit, legal, tax or investment advice. It does not consider your objectives, financial situation or needs. Low-doc lending policies vary widely by lender and change often. Please do your own research and obtain independent advice from a licensed financial adviser, mortgage broker, accountant and conveyancer or solicitor before making any decision. Loan approvals are subject to lender criteria. To the maximum extent permitted by law, our business, its directors, employees and brokers accept no liability for any loss or damage arising from reliance on this article.

Disclaimer: The information in this article is general in nature and does not constitute personal financial or credit advice. Speak with Amber Finance so we can look at your own situation in detail.