Mortgages for the Self-Employed

What is a low doc home loan?

A low doc loan is an abbreviation for a low documentation loan, also commonly referred to as an alt doc or alternative documentation loan. It’s primarily suited to self-employed borrowers, but may also be appropriate for professional investors, seasonal and contract workers.

We are always happy to have a commitment-free discussion, so please feel free to get in touch with any questions about low doc loans.

One of the main criteria that lenders use in assessing a home loan application is proof of income in the form of payslips or tax returns. If you are unable to verify your income by one of these methods, then a low doc home loan is an option for you to consider.

Alternative forms of verification may be in the form of business activity statements (BAS), an accountant’s letter, or financial statements (among others). The concept is the same; the lender wants to see that there is income to support the loan you are seeking.

Most low doc loans also offer the same popular additional features of standard home loans, such as an interest-only repayment option, the ability to make extra repayments or fix your interest rate, offset facilities and lines of credit.

It’s important to be aware that they’re harder to secure than they were a decade ago. Many lenders have tightened their lending practices in line with increased regulatory pressure, and some lenders no longer offer alt doc loans.

As with all consumer finance, the responsible lending provisions of Australian credit law apply. The lender must assess that the borrower has the capacity to make their repayments before they approve a loan application. The difference here is that the documentation required to establish income is more flexible.

Frequently Asked Questions

We go through a number of frequently asked questions about low doc home loans below. If you have any further queries or would like assistance in organising a low doc loan, please get in touch for an obligation-free conversation about your needs.

We’re Here to Help

As you can see, low doc loans are an option if you’re self-employed or in any other situation where your income fluctuates. We’re experienced in this form of home loan financing and can advise you if it’s suitable for your circumstances. We’ll save you time by advising which lenders may be more likely to approve your application based on the documentation you can provide. We can also help you negotiate the best possible home loan deal with a lender. Even slight variations in interest rates and other loan terms and conditions can make a massive difference to the amount you’ll repay over the life of a home loan.