Low doc and alt doc
Low Doc Home Loans for the Self-Employed
Tax returns not lodged yet, or not showing how your business is going now? Some lenders may verify your income in other ways. We compare low doc options from a panel of 40+ lenders and explain the costs and trade-offs.
We don’t charge you for our service. Lenders pay us a commission if you go ahead with a loan.
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- 40+ lenders, banks to specialists
- Phone or video, evenings included
We start by understanding
- How long you’ve traded and the documents you have.
- Which lenders may accept them, before anything is submitted.
- The rates, fees and longer-term costs of each option.
What low doc means now
Less paperwork, not less checking.
“Low doc” is the name people still search for. Many lenders now call these alternative documentation, or alt doc, loans. They’re for self-employed people whose tax returns aren’t lodged yet, or don’t show how the business is going now.
Alt doc doesn’t mean the lender ignores your income or ability to repay. The lender uses other evidence of your income, and still assesses your expenses, debts, credit history and the property.
Self-employed? Lenders ask for different proof of income. Most want two years of tax returns. Some may accept one year. Others may use an accountant’s declaration, BAS or business bank statements instead. Options with less paperwork usually cost more. The route you take affects the loan, the deposit and the cost, so we’ll look at which one suits your situation.
Your options
Ways lenders may verify self-employed income.
Which documents a lender accepts, over what period, and on what terms, varies between lenders.
Two years of tax returns
The standard route, often called full doc. Most lenders ask for it, and it opens up the widest choice of lenders.
One year of tax returns
Had a strong year in business? Some lenders may assess your income on your most recent tax return, rather than two years. Conditions apply, and the loan may cost more than a standard one. We’ll check what fits.
An accountant’s declaration
Some lenders may accept a letter or declaration from your accountant confirming your income, usually alongside other checks.
BAS or business bank statements
Some lenders may use recent Business Activity Statements or business bank statements to show your income. The period they look at varies.
New in business
Recently gone out on your own?
Recently gone out on your own? Some specialist lenders may consider you once your ABN has been registered for around six months, with alternative documents instead of full tax returns. Specialist loans usually cost more, so we’ll compare the options with you.
A shorter trading history narrows the field. Some lenders may also consider your work history before you started the business.
Want a quick feel for your income so far this financial year? Try our year-to-date income calculator. It’s an estimate only.
The cost
What alt doc costs, and how to move on later.
Alt doc loans usually cost more than full doc loans. The rate may be higher, extra fees may apply, and some lenders may ask for a bigger deposit or lend less against the property. We compare comparison rates, fees, repayments and total expected cost, not just the headline rate.
Moving to a full doc loan later
An alt doc loan doesn’t have to be your loan forever. Once your tax returns are lodged and show your income, you may be able to refinance to a full doc loan, subject to the lending criteria at the time. Switching has costs too, so we compare them with the potential saving first.
Worth having ready
Your ABN details, recent BAS, business bank statements and your accountant’s contact details. We’ll go through what the lender is likely to ask for once we’ve talked.
30-second check
Is your situation one some lenders look at differently?
Lenders count income and costs differently. See if your situation is one some lenders treat differently. Tick any that apply. No numbers needed, and your ticked answers stay on this page unless you ask for a call back and choose to include them.
How it works
How we check which route fits.
Tell us where you’re at
How long you’ve traded, and which documents you have or can get.
Compare lenders
We compare what each lender on our panel accepts, and the cost of each route.
Prepare the application
With your permission, we work with your accountant on any business information the lender asks for.
Settle and review
We see it through to settlement, then check when a full doc loan may be worth a look.
Questions
Common questions, straight answers.
What is a low doc home loan?
It’s the name many people still use for an alternative documentation (alt doc) loan. Self-employed borrowers can verify income with documents such as BAS, business bank statements or an accountant’s declaration instead of two years of tax returns, where the lender’s policy allows.
Does low doc mean the lender doesn’t check my income?
No. The lender still assesses your income, expenses, debts, credit history and ability to repay. It just accepts different evidence of your income.
Are low doc home loan rates higher?
Usually. Pricing depends on the lender, the documents you provide, your deposit and the overall application. We compare the total cost.
How long do I need to have had my ABN?
It depends on the lender. Some specialist lenders may consider you from around six months of ABN registration. Mainstream lenders often want a longer trading history.
Can I refinance to a full doc loan later?
Possibly. Once your tax returns are lodged and show your income, more lenders may consider you. You’ll still need to meet the new lender’s requirements at the time.
Will applying affect my credit report?
A credit application can be recorded on your credit report and stay visible for several years. That’s why we compare lenders before an application goes in.
Talk through your documents.
No obligation. No pressure. Just honest answers.
We don’t charge you for our service. Lenders pay us a commission if you go ahead with a loan. Lending criteria, fees and charges apply.