Been Told You Can't Refinance? Mike O'Malley Shares 5 Tips

If you're self-employed and have recently looked into refinancing your home loan only to be told you don't qualify, you're not alone.

At Rate Money Sydney City, Mike O'Malley regularly speaks with business owners, contractors and sole traders who believe they've run out of options after receiving a decline from a lender. In many cases, it's not about repayment history, but how income is assessed.

Recent reporting from the Mortgage and Finance Association of Australia (MFAA) found that nearly half of mortgage brokers and loan writers are seeing more clients struggle to refinance because they don't meet servicing requirements. For self-employed borrowers, this can be particularly frustrating when repayments have been maintained by the borrower but lending policies have changed.

At the same time, Sydney remains Australia's largest property market, with median dwelling values sitting at approximately $1.22 million. In a market of this size, even small changes to a loan structure or interest rate can have a meaningful impact over time.

Here are five things Mike believes every self-employed borrower should know before ruling themselves out of refinancing.

1. One Lender's "No" Doesn't Mean Everyone Will Say No

Many self-employed borrowers assume a declined application means refinancing is no longer possible.

The reality is that lenders can assess self-employed income differently. Business structures, company earnings, trusts and tax strategies can all influence how an application is viewed.

Before assuming refinancing isn't an option, it may be worth understanding what alternatives could be available.

Rate Money Sydney City for example can access loan products designed specifically for business owners that allow for income to be verified through bank statements, BAS statements, or an accountant’s declaration rather than just recent tax returns.

2. Lending Assessments Have Changed

Many self-employed Australians qualified for their current home loan years ago under a different lending environment.

Today, lenders generally assess income, expenses and debt commitments more closely than ever before. This is particularly prevalent in an environment where property values are declining, and interest rates are increasing. As a result, some borrowers who have comfortably managed their repayments for years may find refinancing more challenging.

3. Your Equity Position Could Be Valuable

Equity remains one of the strongest assets a homeowner can have.

With Sydney dwelling values remaining around $1.22 million, many long-term homeowners have built substantial equity through property growth and consistent repayments.

For self-employed borrowers, a strong equity position may help create opportunities that weren't available when the property was originally purchased.

For example, a borrower who purchased a property for $800,000 at 80% LVR would have had an initial loan of $640,000. If the property is now valued at $1,200,000 and the loan reduced to $550,000, they have $650k of equity and potentially $410,000 of usable equity at 80% LVR, subject to serviceability and lender policy.

4. Self-Employed Borrowers Often Need A Different Approach

For self-employed Australians, refinancing can present unique challenges.

Business owners, contractors and sole traders often don't have the straightforward income structure of a PAYG employee. Business expenses, company profits and tax planning strategies can all influence how a lender assesses an application.

According to Mike, one of the most common mistakes self-employed borrowers make is ruling themselves out too early due to an initial setback from a mainstream lender.

Rate Money has products and policies that specifically cater for self-employed borrowers, and loan writers that understand their business and can match them to the most suitable loan.

5. Alternative Refinance Solutions May Be Available

The need for alternative refinance pathways is becoming increasingly relevant for self-employed Australians.

With many borrowers finding it harder to refinance in the current market due to changing servicing requirement, eligible borrowers should explore alternative loan solutions that may apply to them.

Rate Money's Evolve Dollar-for-Dollar Refinance solution is one such option:

• Available for individual and company borrowers
• Up to 80% LVR
• Loan amounts up to $2.5 million
• No servicing assessment required

As always, eligibility criteria apply and suitability will depend on your individual circumstances.

Contact Rate Money Sydney City For Help

At Rate Money Sydney City, Mike O'Malley and the team specialise in helping the self-employed navigate refinancing scenarios that don't always fit standard lending policy.

Whether you're a business owner, contractor or sole trader, the team takes the time to understand your circumstances, income structure and goals before helping you explore the options available. If you've been told refinancing isn't possible, a second opinion may reveal opportunities you didn't realise were available.

Final Thoughts

Being told you can't refinance can be disappointing, but it doesn't necessarily mean you've reached the end of the road.

For business owners, lending outcomes can often depend on how income is assessed, the lender involved and the options being explored. Before ruling yourself out, it's worth understanding what alternatives may be available based on your circumstances.

Thinking about refinancing but unsure where you stand?

Contact Rate Money Sydney City and speak with Mike O'Malley and the team to discuss your circumstances and explore what options may be available to you.

Sources:

• Sydney property market data, trends and forecasts 2026 [whichreale...ent.com.au], [openagent.com.au]

• The Adviser reporting on MFAA refinancing commentary (September 2026) [whichreale...ent.com.au]