RedZed: a three-question decision tree for self-employed borrowers the Big 4 can't write
RedZed is a Melbourne-headquartered specialist lender built for one job — writing self-employed files that mainstream banks decline. 324 products, 8.0x DTI, 9.00% assessment rate, and a tiered product shelf that priced correctly almost always finds an approval. Three questions and you'll know which RedZed tier is yours.
1How long have you been self-employed?
RedZed's primary differentiator from mainstream lenders is short-trading-history acceptance. The Big 4 require 2 full years of lodged tax returns. RedZed's alt-doc pathway accepts from 6 months of ABN registration combined with supporting income documentation — the shortest threshold on the Esteb and Co lender panel.
2+ years full-doc
Lodged tax returns available for 2+ years. Routes to RedZed Prime tier at 6.67%–7.19% depending on LVR.
1–2 years alt-doc
1 year of tax returns OR business bank statements / accountant's letter / BAS. Routes to RedZed Alt-doc tier at 7.19%–7.69%.
6–12 months ABN
Short-trading history with 6 months minimum ABN registration. Routes to RedZed Short-trading Alt-doc at 7.79%–8.19%.
2How clean is your credit?
Credit events are where RedZed genuinely extends beyond mainstream. Pepper Money and Liberty also write specialist tiers; RedZed's 8.0x DTI cap is the most generous on our panel, enabling borrowers with high existing debt to qualify where others decline.
Clean credit
No credit events, no late payments >30 days, score 600+. Proceed to RedZed Prime at the tier from question 1.
Minor events
Small defaults (<$1000, paid), discharged judgement, 1–2 late payments historic. Routes to RedZed Near-Prime at +0.30% premium.
Significant events
Default >$1000 unpaid, multiple defaults, discharged bankruptcy (2+ years discharged). RedZed Specialist tier at 8.19%+. Still writable.
3What's your LVR?
RedZed caps at 90% LVR on both OO and investment. For 95%+ LVR on self-employed, you need a mainstream HGS pathway (rare for self-employed) or a non-specialist lender — RedZed can't write there.
<70% LVR
Full RedZed rate card available. Prime from 6.67%. Investment from 6.97%.
70–80% LVR
Standard RedZed pricing; most files land here. Mid-tier across Prime / Alt-doc / Near-Prime bands.
80–90% LVR
LMI payable. Premium of 0.15–0.40% above <80% LVR rates. Above 90% LVR route to mainstream or HGS — RedZed caps here.
Your RedZed tier & indicative rate
Match your three answers above to a tier verdict. Rates indicative for April 2026 on OO P&I below 80% LVR; investment adds ~0.30%, 80%+ LVR adds ~0.20%.
Why RedZed vs Pepper vs Liberty?
Three lenders dominate the specialist self-employed panel. The decision is usually price-per-tier, not structural.
DTI cap
Most generous DTI on our panel. Pepper matches at 8.0x. Liberty 7.5x. Mainstream 6.5x. Enables high-existing-debt borrowers.
Min ABN
6 months ABN minimum on alt-doc short-trading pathway. Pepper 12 months. Liberty 12-24 months. Tightest-to-market SE pathway.
Products
Third-largest product shelf on our panel after Westpac and HSBC. Enables exact-fit tier pricing at every credit/LVR/doc combination.
Price all three in parallel on any specialist self-employed file. Pepper is the volume leader and picks up the largest share because of broader broker accreditation and the widest credit-event appetite; RedZed takes a meaningful share on mid-tier Alt-Doc pricing; Liberty picks up the balance. The three tier structures are similar enough that the choice is usually price, not policy.
RedZed — April 2026 Snapshot
Self-employed and declined by the Big 4?
Walk through the three-question decision tree live with us and we'll price RedZed alongside Pepper Money and Liberty for your exact profile. Quick brief, realistic numbers back.
Run the specialist comparisonWhat is RedZed?
RedZed is a Melbourne-headquartered specialist non-bank lender focused on self-employed borrowers and credit-impaired files. Authorised under Australian Credit Licence requirements. RMBS-funded (similar structure to Resimac and Firstmac) — this funding model enables the specialist rate tiers.
What is RedZed's cheapest rate?
6.67% variable on the Prime tier for clean-credit self-employed at below 80% LVR. Alt-doc and specialist tiers price higher.
Does RedZed accept paid or unpaid defaults?
Yes. Paid defaults route to Near-Prime at +0.30% over prime. Unpaid defaults or significant events route to Specialist at 8.19%+.
What is RedZed's DTI cap?
8.0x gross household income — the most generous on across Esteb and Co's panel alongside Pepper Money at the same level. Mainstream cap is 6.5x. Big 4 cap is 7.0x. RedZed's 8.0x enables high-existing-debt borrowers.
Can RedZed write 95% LVR?
No. RedZed caps at 90% LVR on both OO and investment. For 95% LVR self-employed, mainstream HGS pathways are the only option (rarely available to specialist profiles).
How fast is RedZed approval?
RedZed typically clears clean full-doc self-employed files in 8-12 business days. Specialist tier files (credit events, alt-doc short-trading) can take 15-20 days due to documentation verification.
Does RedZed lend nationally?
Yes. National broker-channel lending. Security property in any state accepted.
What makes RedZed's Melbourne HQ relevant?
RedZed's RMBS funding is arranged through Melbourne financial markets. The funding cost structure differs slightly from Sydney-centric RMBS issuers (Pepper, Liberty), which occasionally means RedZed prices marginally sharper on the mid-tier Alt-doc / Near-Prime band. Minor advantage but real on marginal files.
Richard Esteb
I price every self-employed file against RedZed + Pepper + Liberty in parallel. RedZed wins around 30% on mid-tier pricing; the three-question decision tree almost always lands the right tier the first submission. Refreshed 7 March 2026.