A low doc home loan is a mortgage that allows eligible borrowers to verify their income using alternative documentation rather than relying entirely on the documentation normally required for a standard home loan.

They’re commonly used by self-employed borrowers, business owners, contractors and other people whose income can be difficult to demonstrate using traditional payslips and tax returns.

Not necessarily.

Depending on the lender, you may be able to demonstrate your income using documents such as BAS, business bank statements, an accountant’s letter or an income declaration.

Every lender has different requirements, so we’ll determine which options may be available based on the documents you can provide.

Yes. Self-employed borrowers are one of the main groups that low doc home loans are designed to assist.

You’ll still need to satisfy the lender’s eligibility, income, credit and affordability requirements.

Requirements vary between lenders, but they may ask for a combination of:

• BAS statements
• Business bank statements
• Personal bank statements
• Accountant’s letter
• Income declaration
• ABN details
• Evidence of your business trading history
• Identification and details of your assets and liabilities

We’ll explain exactly what is required before submitting your application.

They can be.

Some low doc loans have higher interest rates or fees than comparable standard home loans because the lender may consider them a higher lending risk.

However, rates and lending policies vary considerably between lenders, which is why comparing multiple options can be important.

Your borrowing capacity depends on factors including your income, existing debts, living expenses, deposit, property value, credit history and the lender’s individual policy.

Our brokers can calculate your potential borrowing capacity once we understand your circumstances.

Deposit requirements vary depending on the lender, property and your overall financial position.

Some low doc loans may require you to contribute a larger deposit than a conventional home loan.

Speak with us and we can assess the options available for your particular situation.

Potentially, yes.

There are low doc lending options available for both owner-occupied and investment properties, subject to the individual lender’s eligibility and assessment criteria.

Yes, low doc lending can potentially be used to refinance an existing home or investment loan.

This may be useful for self-employed borrowers who want to refinance but can’t provide the standard financial documentation required by their existing bank or another traditional lender.

Possibly.

Some specialist lenders consider applications from borrowers with previous credit issues, but approval will depend on the circumstances surrounding those issues, your current financial position and the lender’s criteria.

A mortgage broker can help determine which lenders may be willing to consider your application before you apply.

No.

A low doc loan requires less traditional income documentation, but lenders still require evidence to assess your financial position and ability to repay the loan.

It isn’t a loan with no financial checks or documentation.

This varies between lenders.

Your length of time in business, ABN registration, industry experience and available financial information may all be taken into account.

Even if you’ve recently become self-employed, it’s worth speaking with us to find out which lenders may consider your circumstances.

Depending on the lender and product, low doc loans may offer features such as variable rates, fixed rates, split loans, redraw facilities and offset accounts.

We’ll compare the available features as well as the interest rate when recommending suitable options.