Low Doc Loans Explained
Low documentation home loans let self-employed Australians, contractors, and small business owners verify income through bank statements, BAS, or accountant letters instead of full tax returns. This guide covers acceptable alternative documentation, LVR limits, and which lenders specialise in low doc lending.
What Is a Low Doc Loan?
A low doc (low documentation) loan is a home loan that accepts alternative forms of income verification instead of the standard two years of tax returns and ATO Notice of Assessment that mainstream lenders require. These products serve self-employed borrowers who have genuine, verifiable income but whose tax returns — often minimised through legitimate deductions — do not accurately reflect their earning capacity.
Modern low doc and alt doc loans still require meaningful income evidence; they simply accept different types of evidence than a standard full doc loan. If you also have credit issues, see our bad credit home loans guide for information on how these factors interact.
Low Doc vs Alt Doc: What's the Difference?
- Low doc loans traditionally required minimal documentation — in some cases, just a signed self-declaration of income. Today, very few lenders offer true low doc products.
- Alt doc (alternative documentation) loans require more documentation than a self-declaration but less than a full doc loan. Typical requirements include 12 months of business bank statements, BAS statements, or an accountant's declaration.
Who Qualifies for a Low Doc Loan?
- Have been self-employed for at least 12 months (most lenders prefer 24 months)
- Have an ABN registered for at least 12 months
- Be registered for GST if annual turnover exceeds $75,000
- Be able to demonstrate consistent business income through bank statements, BAS, or accountant's declaration
- Meet the lender's minimum 1 requirements
The ATO's guide to business and self-employment income is a useful reference.
What Documents Are Accepted?
| Document Type | What It Shows | Typical Requirement |
|---|---|---|
| Accountant's declaration | Your accountant certifies your income | Letter on letterhead, signed by a registered accountant |
| Business bank statements | Cash flow in and out of your business account | 6–12 months, most recent |
| BAS statements | GST turnover reported to the ATO | 4–8 quarters, most recent |
| Self-declaration | Borrower signs a statutory declaration of income | Accepted by fewer lenders; usually requires supporting evidence |
Rates, LVR, and Costs
- Rate premium: typically 0.5% to 1.5% above equivalent full doc rates
- Maximum LVR: most lenders cap at 80% for low doc loans (20% deposit required)
- LMI: may apply at higher LVRs; some lenders charge a low doc loading fee
Use our LMI Estimator and Cost of Delay Calculator to model your scenario.
Which Lenders Offer Low Doc Loans?
Low doc and alt doc products are primarily offered by specialist non-bank lenders, including Pepper Money, Liberty Financial, Bluestone Mortgages, La Trobe Financial, and Resimac. These lenders work primarily through mortgage brokers.
Why a Specialist Broker Matters
A specialist broker who works regularly with self-employed borrowers will:
- Know which lenders accept which documentation types for your income structure
- Know which lenders have the most competitive rates for your LVR and credit profile
- Know how to present your application to give it the best chance of approval
- Advise on whether to wait for more documentation history to access better rates
- Proactively contact you when eligible to refinance to a better product
Use our Eligibility Checker to get started, or send us an enquiry directly.
Frequently Asked Questions
Can I get a low doc loan if I have only been self-employed for 12 months?
Some lenders will consider applications from borrowers with as little as 12 months, but options are more limited. Most prefer 24 months.
Do I need to have my tax returns up to date?
For alt doc loans, you don't need to provide tax returns as primary income evidence. However, some lenders will ask whether returns are lodged.
Can I use a low doc loan for an investment property?
Yes. Low doc and alt doc loans are available for both owner-occupied and investment properties.
What is the minimum credit score for a low doc loan?
This varies by lender. Some specialists consider scores below 500 (Equifax), but the rate premium will be higher.