Scenario walkthrough: self-employed 3y · OO · $880K · 25% deposit · clean credit
Common self-employed mortgage scenario. Compare Halo Flex vs 3 external lenders — docs needed, approval odds, common decline reasons.
— Halo Scenario Desk
This exact scenario appeared in Halo Chat 11 times last month. Here's the full breakdown — including why some lenders approve and others decline.
Client profile
- Industry: Sydney hospitality (dine-in + delivery)
- Years self-employed: 3 (Pty Ltd incorporated 2023)
- Purpose: Owner-occupied (OO)
- Loan amount: $880,000
- Deposit: $220,000 (25%, from business retained earnings + spouse PAYG)
- Credit: Clean, Equifax 750+
- Income: Company profit $180k/year (2yr trading history), spouse PAYG $95k/year
Pre-check result (30 seconds via Halo Chat)
| Product | Match | Rate indication | Docs required | Decision time |
|---|---|---|---|---|
| Halo Flex (alt-doc) | 92% | 6.19% | 1yr BAS + accountant letter + ID | 72h |
| Bendigo alt-doc | 78% | 6.39% | 2yr BAS + 2yr NOA + ITR | 5-7 business days |
| MA Money (full-doc) | 55% | 5.94% | 2yr ITR + 2yr financials + BAS | 7-10 business days |
| CBA (full-doc) | 32% | 5.89% | 2yr ITR + 2yr financials + 6mo statements | 10-14 business days |
Match % is Halo's internal approval-odds model. Final decision always with the bank's underwriter.
Why Halo Flex wins
Specific edges:
- Low doc threshold — 3 years self-employed often means only 2 complete FY returns (FY2024, FY2025), with the third year mid-reporting. Full-doc lenders need 2 complete years of ITR + financials, which this client is just short of.
- Fast decision — Alt-doc is 72h; Bendigo alt-doc is 5-7 days. Client already signed a contract with a 14-day finance clause.
- 80% LVR + cash-out — Halo Flex allows 80% with unrestricted cash-out. Client plans $120K renovation in the next 6 months; no re-serviceability needed.
Why full-doc drops match score
Not "can't approve" — it's document prep takes 2+ weeks and this client only has a 14-day finance clause.
Full-doc route needs:
- 2 years complete ITR (client has 1 complete + 1 partial)
- 2 years financial statements (accountant would need to redo)
- 2 years NOA (ATO has them, but trust distribution timing creates gaps)
Brute-force possible in 4 weeks. Client can't wait.
Common decline reasons (non-Halo-Flex paths)
1. BAS GST reconciliation mismatch with ITR
Self-employed clients report BAS at GST-inclusive; ITR turnover is GST-exclusive. Many underwriters fail this at triage. Fix: accountant reconciliation letter — Halo Chat generates the template in one click.
2. Trust distributions as beneficial owner income
Income flows via discretionary trust. Halo Prime needs 2 years of beneficiary distribution history; alt-doc only needs 1.
3. COVID-era ATO deferred debts
Many hospitality clients have ATO deferral balances from 2020-2022. Halo Flex accepts "active payment plan + 12 months compliance"; other lenders require 24 months.
Broker playbook
- Client walks in → first thing: run Halo Chat scenario. 30s → top 3 matches.
- Match ≥ 85% → submit directly. 70-85% → take the doc list to the client.
- Match under 70% → skip unless client can wait 2-3 weeks to build the file.
We handle 20+ self-employed cases like this every month. Want your current case checked? Run a scenario.
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