Low doc home loans are for those who are self employed and are unable to prove their income through traditional means. This is the only way that you can borrow without recent tax returns or financial statements. A Low Doc Loan is an otherwise normal home or investment loan that does not require the normal income verification such as tax returns, financial statements or payslips.

Instead of providing these documents the lender will ask you to sign a form called an income declaration on which you state your income. The lender then uses your stated income in their assessment.

Low doc loans are a higher risk to financial institutions so they tend to place greater restrictions on this type of loan.

You may have already found that choosing the right low doc home loan can be difficult as lenders have different requirements and interest rates.

1) Are low-doc loans only for the self employed?

2) Who should apply for a low doc loan?

3) Potential issues to look out for

4) How do I get approved?

5) Why you should only provide documents asked for?

6) Do I need to tell my lender about my assets & liabilities?

7) What is the difference between a low -doc and a no-doc?

8) What does LVR mean and how does it affect the price of my loan?

9) How much can I borrow?

10) Which banks have low-doc loans?

11) Why should I use a mortgage broker for a low doc?

12) Can I switch from a low doc to a full-doc later on?

13) Finding the lowest interest rates, fees and charges.

14) Clear credit history results in good interest rate

15) Provide the right evidence type of income.

Low-Doc with Bank Statements

Modern day low doc loans require you to provide additional documents to verify your income.

One of the simplest methods is to provide the bank statements for your main business account.

However this method isn’t accepted by every lender. Read on to find out how your home loan will be assessed and how to get approved.

1) What are the qualifying criteria?

2) What if you cannot meet the above criteria?

3) How do they calculate my income?

4) Can a major bank accept bank statements?

5) Who is this type of loan suitable for?

Low Doc With BAS

1) Why do lenders ask for BAS?

2) Do I qualify?

3) How is my income calculated from my BAS?

4) My sales and income on the BAS vary.

5) Are hand written BAS statements acceptable?


No BAS Low Doc

Not all lenders need BAS statements.In early 2009, only a few lenders required some kind of proof of income for low documentation loans.

Unfortunately due to the Global Financial Crisis (GFC) and the introduction of the National Consumer Credit Protection Act (NCCP), lenders began to ask for Business Activity Statements (BAS) to support the borrower’s declared income.

By January 2011, almost all Australian lenders had tightened their low doc loan lending policies by requesting BAS to support the income declared by the borrowers.

At present, most lenders now require a minimum of 12 months BAS statements from new loan applicants as part of their updated ‘responsible lending’ requirements.

1) Lender’s requirements for low doc loans without BAS

2) Is Low Doc without any Income Evidence Available?

3) Borrowing with NO income evidence?


Low Doc and LMI

1) Why do banks charge LMI?

2) Will I have to pay LMI?

3) LMI or Risk Fee?


No ABN Low Doc Loans

1) Why do most lenders look for an ABN?

2) What if I don't have an ABN?

3) What is an ABN?

4) What do most lenders require me to provide?

5) Are there any exceptions to ABN policy?

6) How can I find out what my ABN is or if I have one?

7) How can I apply for an ABN?

8) What if I lie about being self employed to get a loan?

9) Will I pay a higher interest rate if I don't have an ABN?

10) How can I apply for a no ABN low doc loan?

11) Why does each lender have different requirements?

12) What if I'm not GST registered?

13) What if my ABN is not 2 years old?

14) What if I apply with a lender that needs BAS statements?

15) Do I need a deposit?

16) Do I need genuine savings?

17) Low-doc loan with family guarantee

18) Are low-doc loans available for First Time buyers

19) Which types of properties are acceptable as security?


Refinancing With A Low-Doc Loan

Most major lenders will no longer approve low-doc loans that are used to refinance an existing home loan.This leaves many people in a difficult position when they need money the most (as they can’t draw equity out) and leaves others stuck in older loans at much higher interest rates. However, there are some lenders will still refinance a low- doc loan.

1) Can I refinance using a low doc loan?
2) What are the other qualifying criteria?


Vacant Land Low Doc

Vacant land is a riskier type of security than a normal house or unit. There are less people who want to buy vacant land, so blocks of land tend to have extended selling periods or have fluctuating values.

Lenders are already conservative when assessing low doc loans, so when you tell them that you are buying land, that may cause your loan to be rejected.

As a general rule, normal sized blocks of land in metropolitan areas are fine for most of our lenders.

Regional, rural and remote locations that can be difficult to finance. especially on a low doc loan.

1) How much can I borrow?

2) Does the size of my land matter?

3) Do I have to build on the land?

4) What happens when I decide to build on my land?


Land with bad access

Lenders will not lend a cent against a property unless it has good access. If you have to go through a neighbour’s land to get to your property, then no lender can help you unless there is some sort of legal right of access to your property.

From a lender’s point of view, nobody would want to buy a block of land that can’t be accessed!

Some properties which are remote and only accessible by forest track through crown land, such as a state forest, are more difficult to finance.

However, if there is legal access that does not rely on a lease that could theoretically be cancelled, then we can arrange a low doc loan for most self employed borrowers.

If your property can only be accessed by a dirt road that is poorly maintained, then during bad weather your land may become completely inaccessible! The majority of banks will decline home and investment loans with these properties as security.

1) Does the zoning of the land matter?

2) Is there a higher interest rate for vacant land?

3) Common problems

Vacant Land low-doc loan using old tax returns

As a general rule you must meet the following criteria:

  • Your old tax returns must show a high income.
  • You must show two years returns & financial statements.
  • Your tax return must be no more than two years old (see below).
  • You can borrow up to 90% of the property value.

1) How old can my tax returns be?

2) What if my old tax returns don’t show a good income?

3) Who can use this method?

4) How much of the value of the property can I borrow?

5) Which lender has the lowest interest rates? Which has the lowest LMI premium for their low doc loans? Which lenders do you qualify with?


Construction Low Doc Loan

In the past low-doc loans were not available for construction purposes.

However some major banks now have more flexible lending criteria.

This means that you may be able to obtain finance for your next big construction project.

1) How much can I borrow?

2) How can I get approval?

3) When should I apply for a construction home loan

Self-employed contractor

Are you a self employed contractor? This means that you meet the following criteria:

  • You do not provide materials, only your labour.
  • You do not have employees.
  • You work for one main company only.
  • You can provide invoices and bank statements to verify your income.
  • You are borrowing no more than 90% of the property value.

In this case then we may be able to accept your income with just your invoices and bank statements as evidence of your income. Please refer to our contractor loan page in Income Types for more information.

1) Just started your new business? You may be able to use the income from your most recent job.

2) Is this a low doc or full doc loan?

3) Who can use this method?

4) How much can I borrow?


High LVR Low Doc

Banks are limited by their mortgage insurers as to how much they can lend. As a general rule they  can’t approve loans over 80% of the value of your property.

Luckily banks are not the only lenders in Australia that can allow you to self certify your income without providing tax returns.

1) 90% Low Doc

2) 85% Low Doc

3) No deposit? Need a 100% loan?

4) LMI and lenders risk fees

Investor Low Doc

1) What is an investor low doc?

2) I can prove my investment income

3) Shall I use one or multiple banks for my portfolio?

4) My rental income covers all my repayments

5) Does location of the property matter?


Low Doc Loan Types

1) Basic Low-doc loan

2) Professional package low doc loan

3) Fixed rate low doc loan

4) Line of credit low doc

5) What features are available for low doc?

Low Doc Commercial Loan

1) Applying for a commercial loan if you don’t have the financial documents required by the banks?

2) How much can I borrow?

3) What documents do I need to provide?
4) Using forecasts and interim financials

5) Can I refinance with a low doc loan?

6) Accepted Commercial property types.

7) Are long-term loans available?

8) What do Commercial Low doc interest rates depend on?

9) Which banks/lenders do Commercial low doc?



No Doc Loans

1) What is a no doc loan?

2) Can I Qualify?

3) How much can I borrow with a no doc loan?
4) What are the qualifying criteria?

5) Exit strategy

6) Why do banks ask for payslips?

7) What if I don’t have payslips?

8) How can I prove my income?
9) How much can I borrow?

10) Will I pay a higher interest rate?

11) What if I don’t have a job?

12) What if you get paid in cash?

No Doc Commercial Loan

Buying or refinancing a commercial property without providing any income evidence

There are fewer regulations for commercial loans which means the banks are not required by law to verify your income. This allows people with a complex or outside of the box situation to invest in commercial property without any hassles.

1) How much can I borrow?

2) How does a no doc commercial loan work?

3) Does my credit history matter?

4) Which properties are acceptable as loan security?

5) Loan term

6) Commercial no doc interest rates

7) Which lenders can help?

8) Exit Fees

Bad Credit Commercial Loan

There are a couple of specialist commercial lenders that can look past your credit file, focus on the future and assess you on your merits rather than a set of guidelines.

1) Are bad credit WITH low doc available?

2) What is considered a bad credit history?