Self-employed home loan rates just got a fresh pitch from outside the big four. A non-bank mortgage manager has launched an “Easy Doc” offer starting at 6.99% p.a., with a comparison rate of 7.36% p.a., open from 7 October to 1 December. It is being promoted as a cut of about 0.4% p.a. against the lender’s usual pricing.
That gap between 6.99% and 7.36% is the first thing worth reading closely. It is a reminder that the number on the banner is not the number on the statement.
What the two rates tell you
A comparison rate folds in fees and charges over a standard loan term, so it is a better guide to cost than the headline. The difference here is 0.37 percentage points. On a $1 million loan, that is roughly $3,700 a year in extra cost that the advertised rate does not show, before you account for how long you actually keep the loan.
If you are a self-employed borrower comparing this against a bank offer, put both comparison rates side by side. Then ask for the full fee schedule: application, ongoing, discharge and valuation costs.
Why non-banks are chasing this group now
The timing is not an accident. The RBA has lifted the cash rate, lenders are passing it on, and borrowers who might otherwise sit tight are reopening the conversation with their brokers. The lender’s chief executive has said as much: rate rises get borrowers engaged, and good brokers use that.
Self-employed borrowers are a natural target. Their income is lumpy, their tax returns often show deductions that shrink assessable earnings, and big banks can be rigid about it. That leaves a pool of creditworthy people who are priced out or turned away by mainstream serviceability models. A non-bank can step in with a different credit appetite and charge accordingly.
Our guide to RBA interest rates and repayments explains how a cash rate move feeds into what you pay each month. For self-employed households, the pass-through can hit harder because cash flow is already variable.
The conditions behind the headline
The offer comes with a refinance policy that pays out existing loans dollar for dollar, available up to an 80% loan-to-value ratio on loans up to $2.5 million. Two things stand out.
First, the 80% cap. Borrowers with less than 20% equity do not qualify, which rules out anyone who bought recently or whose property has slipped in value. With prices softening in several markets, that is not a small group.
Second, the structure test. Many competing lenders will only assess a borrower who trades through a company. This lender says it will assess individuals as well as companies. For a sole trader or someone whose business structure has caused a knock-back elsewhere, that is a real difference, and it may matter more than the 0.4% saving.
What it says about credit outside the big four
The offer is a signal that non-bank credit is still available and still competing on price, even as the cash rate climbs. That is useful for borrowers who do not fit the standard mould.
It also comes with a catch. Non-bank lenders fund themselves differently from banks, so they can reprice faster when wholesale funding costs move. A rate that looks sharp now can shift later. Promotional windows, such as this one ending 1 December, are built to pull in applications before conditions change.
The catch
- Headline rate: 6.99% p.a.
- Comparison rate: 7.36% p.a.
- Refinance cap: 80% LVR, loans up to $2.5 million
- Offer window: 7 October to 1 December
The big four are not unanimous on where the cash rate goes from here, and a further move in November would change the maths for every borrower, not only those on this product. The wider pressure on household budgets is already visible in how far Melbourne borrowing capacity is shrinking against falling prices.
Checks before you apply
If you run your own business and are weighing this kind of loan, work through a short list:
- Compare comparison rates, not headline rates.
- Confirm your equity sits at or below the 80% LVR cap after a current valuation.
- Ask what happens when the promotional period ends, and whether the rate reverts.
- Check exit and discharge fees if you plan to refinance again within two to three years.
- Ask a broker to run the same scenario through a bank so you can see the real gap.
The cheapest advertised rate is rarely the cheapest loan once everything is counted. The next step is to get two full quotes in writing and compare the total cost over the period you expect to hold the loan. If you want the weekly read on rates and credit, subscribe to the newsletter.
General info, not financial advice.
