What is low-doc home loan?

A low-documentation (low-doc) home loan accepts alternative income evidence in place of the standard payslips + tax returns lenders require. Typical low-doc evidence includes 12 months of BAS statements, an accountant's letter confirming income, 6 months of business bank statements, or trust distributions.

Low-doc products are designed for self-employed borrowers, contractors, and small business owners whose taxable income is genuinely lower than their actual cashflow (because they expense aggressively). They're not a no-doc loan — lenders still verify income, just through different documents.

Pricing: low-doc rates run 0.30-1.00% above the equivalent full-doc rate, LVRs cap at 60-80% (typically with LMI above 60%), and post-application review is heavier. Most low-doc loans are offered by non-bank lenders rather than the Big 4.

low doc loan · self employed home loan · alt-doc loan