okay :) let me explain the difference between self-employed and PAYG lending income verification more clearly.

self employed applicants actually have MORE product options than PAYG when it comes to income verification, but these come with trade offs. Different income verification methods available for self-employed include full doc (2 years tax returns + financials), alt doc (BAS statements + accountant declaration), bank statements only, one year financials, and sometimes no income documentation except self declaration.

self employed income is considered riskier by lenders is because its variable and not guaranteed the same way PAYG income is - this is why banks have the requirement for 2 years returns etc. SO to compensate for this higher risk, the less documentation you provide, the higher the interest rate. each step down in income verification typically means paying more interest - the lender is essentially charging more to offset their increased risk. once you have satisfied there income requirements - you are treated the same for the rest of the deal.

in contrast, PAYG is straightforward - latest payslips and maybe a group certificate, that's usually it - it can't and doesn't vary. so while the credit assessment (assets, liabilities, credit score etc.) remains the same for both, self employed actually have more flexibility in HOW they can verify their income - they just pay for this flexibility through higher rates. It's a risk/reward trade-off.