How to get your low doc home loan approved
Perhaps the biggest key to getting any home loan approved is to find the right lender for your specific circumstances. Every lender has different lending policies and some are more open to receiving low doc loan applications than others. These policies will dictate how the lender views self-employed home loan applications. This means you risk having your application declined if you approach a bank that won't be lenient with a self-employed borrower. So the key here is to do your research of contacting a good broker who can start you off in the right direction.
Another consideration for self-employed borrowers is that one of the biggest problems they face when applying for a home loan is that their accountant is often too good. Your accountant works very hard to reduce your taxable income by writing down a lot of your business expenditure. While this might help reduce how much you pay in tax, it also has a negative effect on reducing how much you're able to borrow at the same time. After all, writing down the depreciation on a business vehicle or investment property doesn't actually reduce your real income in terms of how much money you made. It's more like a paper loss. But banks rarely see it this way. They assess how much you can borrow based on your taxable income figure and little else.
If you really want to improve your chances of being approved for a self-employed low doc loan, you might want to consider talking to a mortgage broker about your options. This way, you'll have a far better chance of approaching a lender that will welcome your application and have lending policies in place that are more likely to suit the level of documentation you're able to provide.