An educational guide to help self-employed and PAYG borrowers understand how to refinance with low documentation, access equity, and qualify for better rates in 2026.
1. Understanding Low Doc Refinancing
If you’re self-employed, a PAYG employee, a contractor, or run your own business, refinancing your home loan doesn’t have to be complicated. You may not need to provide payslips, tax returns, or extensive income documentation.
That’s where low doc refinancing comes in. This specialised loan product allows borrowers to refinance their existing home loan and access equity without the traditional income verification process.
But the big question remains: How much can you actually borrow? In this article, we’ll break down what the maximum Loan-to-Value Ratio (LVR) means, how it affects your borrowing capacity, and what steps you can take to qualify.
2. Who Can Qualify?
You may be eligible if:
- You have an existing home loan that’s been in place for more than 12 months
- Your current interest rate is 6% or higher
- You have a credit score of at least 600
- Your property value supports borrowing up to 80% LVR
- The new loan repayment will be lower than your current repayment
Key Advantage: No income verification required — no payslips, tax returns, or BAS statements needed.
3. What Does Max LVR 80% Mean?
Your Loan-to-Value Ratio (LVR) represents the amount you’re borrowing compared to your property’s current value.
Formula: LVR = (Loan Amount ÷ Property Value) × 100
For example, if your property is worth $800,000 and you borrow $640,000, your LVR is 80%.
For this low doc refinance product, the maximum LVR is 80% — meaning you can borrow up to 80% of your property’s value without needing to provide Lenders Mortgage Insurance (LMI).
Why the 80% Cap?
- Eliminates the need for costly LMI
- Reduces risk for both borrower and lender
- Provides a comfortable equity buffer
- Allows for better interest rates
4. How Much Can You Borrow?
Here’s a quick example of how much you can borrow under the 80% LVR cap:
| Property Value | Max LVR | Maximum Borrow Amount |
| $500,000 | 80% | $400,000 |
| $750,000 | 80% | $600,000 |
| $1,000,000 | 80% | $800,000 |
| $1,250,000 | 80% | $1,000,000 |
Remember: Your new loan repayment must be lower than your current repayment to qualify.
5. Cash Out Options
As part of your refinance, you can access equity from your property. The maximum cash out available is:
- 3% of your security value, or
- $50,000
- Whichever is lower
Cash Out Examples:
- Property valued at $800,000: 3% of security value = $24,000 → You can access: $24,000
- Property valued at $2,000,000: 3% of security value = $60,000 → You can access: $50,000 (capped at maximum)
The overall loan must remain below 80% LVR, and your new repayment must still be lower than your current repayment.
6. Real-World Example
Case Study: Sarah, a self-employed graphic designer, owns a property valued at $900,000 with a current loan of $600,000. She’s currently paying 6.5% interest and wants to refinance to access funds for business equipment.
Current Situation:
- Property Value: $900,000
- Current Loan: $600,000
- Current Interest Rate: 6.5%
- Current Repayment: $3,792/month
Refinance Calculation:
- Max LVR (80%): $720,000
- Available equity: $720,000 – $600,000 = $120,000
- Maximum cash out: 3% of $900,000 = $27,000
Sarah’s Options:
- Refinance $600,000 at a lower rate with reduced repayments
- Refinance up to $627,000 (including $27,000 cash out) while still maintaining lower repayments
Because Sarah’s current rate is above 6% and she has a credit score over 600, she qualifies without needing to verify her business income. Her new lower repayment gives her better cash flow while accessing the equity she needs.
7. How to Maximise Your Refinance Outcome
- Check your credit score early and address any issues before applying
- Calculate your available equity to understand your cash out potential
- Confirm your current rate is 6% or higher to ensure eligibility
- Reduce existing debts where possible to improve your repayment capacity
- Get an updated property valuation to maximise your borrowing potential
- Work with a specialist broker who understands this unique product
- Speak to a Low Doc Refinance Specialist — Get a Free Borrowing Assessment in 24 Hours
8. Benefits of Low Doc Refinancing
- No income verification required — no payslips, tax returns, or BAS statements needed
- Available to both self-employed and PAYG earners
- Access equity up to 3% of property value or $50,000
- No Lenders Mortgage Insurance when staying under 80% LVR
- Lower interest rates compared to your current loan (if above 6%)
- Reduced monthly repayments for better cash flow
- Fast approval process with minimal documentation
9. Key Takeaways
- Maximum borrowing is capped at 80% LVR for both self-employed and PAYG borrowers
- Cash out is limited to 3% of property value or $50,000 (whichever is lower)
- Your current interest rate must be 6% or higher to qualify
- Minimum credit score of 600 required
- Existing loan must be in place for more than 12 months
- New loan repayment must be lower than the current repayment
- No income verification means a faster, simpler refinance process
Ready to see how much you could save and borrow?
