Low doc home loans are for borrowers who are self employed or unable to prove their income through traditional means.

This is the only way that you can borrow without recent tax returns or financial statements.

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

Our popular articles on low doc loans


What is a low doc loan?

Is a low doc loan suitable for me?


Alternative income verification

There are other ways to prove your business income.


Accountant’s letter

Your accountant can verify your income.


BAS statements

How do banks calculate my income?


Bank statements

Can my bank statements prove my income?


Low doc loan calculator

Are you eligible for a low doc?


Low doc lenders

Which lenders offer low doc loans?


No doc loans

Are they still available?


Interest rates

We’ve compared rates for you!

Choosing a loan

Is there anything I should watch out for?

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

As it stands, there are very few lenders that offer low doc solutions while others have significantly increased the interest rates they are applying.

Below is a list of potential issues to look out for:

  • Higher interest rates: This will mainly depend on the lender and what sort of verification or supporting documentation that you are able to provide. Some of our lenders offer the same low rates as they do for full documentation home loans.
  • Larger deposit: 20% of the purchase price is normally required although some lenders require less.
  • LMI: Mortgage insurance is normally applicable if you borrow over 60% LVR (60% of the property value).

Don’t get caught out by these potential restrictions.

Speak to one of our specialist mortgage brokers by calling 1300 889 743 or enquiring online.

How do I get approved for a low doc mortgage?

Getting approval for your loan isn’t as easy as it used to be.

We use the following three step process to help you to find a lender:

  1. Find out which documents you can provide, what your needs are and which lenders you can qualify with.
  2. Select the lender with the lowest interest rate, fees and LMI premium, as well as the loan features that you require.
  3. Present your application in a way to make sure it is seen favourably by the lender.

Did you know that if you provide partial proof of your income (e.g. an old tax return) that some lenders are now required to ask you for full financial statements and tax returns for all entities?

A lender cannot ignore a document he sees when completing their assessment. To avoid this issue, only provide the documents requested by the lender, nothing more!

Apply for a low doc home loan today!

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

Our mortgage brokers specialise in low doc mortgages. They can quickly assess your situation and get back to you with the best options.

Please call us on 1300 889 743 or enquire online to go through your situation with an expert.

Qualifying criteria

Do I need to prove my income?

For modern day low doc loans, you are required to provide supporting documents to verify the income that you have declared to the lender.

Each lender has their own requirements and will accept different document types to prove your income.

The main documents that can be used to verify your income are:

  • 12 months’ BAS statements showing a high turnover.
  • An accountant’s letter verifying your income.
  • Business bank statements showing a high turnover.
  • Old tax returns (over 24 months).
  • Interim financial statements.

Under the National Consumer Credit Protection Act (NCCP) Act lenders are required to have some kind of income verification from you before they can approve your mortgage.

If you can’t provide one of these documents then it is unlikely that you can get approval for a low doc loan. However, you may qualify for a no doc loan.

Please call us on 1300 889 743 or enquire online for more information.

Accountant’s letter versus accountant’s declaration

An accountant’s letter is on the accountant’s letterhead and is signed and dated by the accountant and may have a disclaimer.

An accountant’s declaration is a form you get from the lender and has figures that need to be completed by your accountant.

Which is most suitable for you depends on what your accountant is willing to sign.

Each lender has their own requirement and their own acceptable format.

Some require a declared income from the accountant whereas others just need confirmation that you can afford the mortgage repayments.

Some lenders require the accountant to state your income in your tax return for the last financial year, which means it isn’t really a low doc loan.

Some lenders will not allow a disclaimer to be added by the accountant.

The goal is to go with a lender that has a method that your accountant is comfortable with and that has great pricing and policy.

Loan to value ratio (LVR)

Most lenders will accept loans for up to 60% of the value of your property (60% LVR). Some will consider lending up to 80% LVR. One of our lenders will consider a 90% low doc loan.

The higher the percentage of your property value that you are borrowing, the higher your interest rates and fees will be.

Length of ABN / GST registration

The majority of lenders require you to have an ABN that has been GST registered for two years but this varies between lenders.

One of our lenders will accept someone who has had an ABN for just one day. This is usually for start up businesses.

Reasonable income for age and occupation

Does the declared income make sense? For example, an 18 year old apprentice would be declined if they declared an income of $200,000.

The banks are still required to meet responsible lending legislation and so they will take a common sense approach to your declared occupation and income.

Asset to income ratio

Borrowers should have a good asset to income ratio. One of our lenders likes to see that you have a net asset position that is equal to two times your annual gross income.

For example, if you earn $100,000 a year then you would be expected to have around $200,000 in net assets.

This is a very strict policy for younger applicants and is a little lenient for older borrowers.

For this reason, we usually help young people to apply with a lender that does not have this policy.

Credit history

Lenders look particularly closely at your credit file and the repayment history of your debts because they cannot fully verify your income.

The major banks are far less forgiving of any problems with your credit history.

We do have options with some of our specialist lenders if you have a bad credit history.

Please enquire online or call us on 1300 889 743 to discuss your situation with one of our brokers.

Security property

Lenders prefer prime security properties in high demand locations like capital cities or regional centres. Properties that are unique, in disrepair or difficult to sell are not accepted by many lenders.

You can refer to our list of low doc property types for more information.

Total exposure

Most lenders prefer low doc borrowers with total debts under $1 million.

A few select lenders allow loans of up to $2.5m per borrower group (e.g. a husband and wife’s total borrowings together).

On a case by case basis we can help investors to borrow more than $2.5m with some of our lenders but they would need to have significant assets and be borrowing a low percentage of the property value.

Equity releases

Lenders normally require proof of how the loan funds will be used if any money is released directly to the borrower.

Lenders are concerned that the borrower may not actually have an income and is using the money to make the repayments or that equity is being released to be used as a deposit to buy further properties.


Some lenders will not refinance an existing low document home loan or existing investment loan but will allow you to purchase a property with a low doc loan.

Refinances are known to be a higher risk than loans used to purchase a property.

Unfortunately, many people are caught out by this if they buy vacant land and then later refinance when they decide to build.

What is a low doc loan?

Learn the low doc mortgage basics

Certain types of low doc loans are much more difficult to obtain than others including loans to refinance existing mortgages or home loans without BAS statements to back up declared income.

  • : Find out the basics of borrowing money without proving your income.
  • : Many lenders now require BAS statements to prove your income but there are lenders out there that don’t have this requirement! Find out which lenders can help.
  • : Many people have PAYG (pay as you go) jobs but cannot prove their income with payslips. There are alternatives to a standard loan that allow you to borrow without evidence of your income.
  • : Are you stuck on a high rate low doc loan? Although many lenders will not approve refinance, there are still some that are willing to consider these applications.
  • : Do you qualify for a low documentation home loan? This calculator will tell you!

How has low doc lending changed?

In the past, you would have been able to obtain a self-certified low doc home loan and, if you had an ABN that had been registered for over two years, it was easy to get approved for a low doc loan.

However, after the Global Financial Crisis (GFC) and introduction of the NCCP Act by the Australian Government, the banks have tightened their lending criteria.

This means that the banks now require proof of income, and in particular, several types of home loans are now very difficult to finance:

  • Low doc Loans for companies and trusts.
  • Equity releases, known in the industry as “cash out” loans.
  • Construction loans.
  • Refinances, particularly existing low doc loans or loans from non-conforming lenders.
  • Asset lends / no doc home loans.
  • Applicants with a bad credit history.

However, we do have lenders that can assist with most of the above loan types.

Please enquire online or call 1300 889 743 to discuss your situation with one of our mortgage brokers.

How many low doc lenders are left?

RAMS accountant’s declaration product was the leading low doc loan product on the market until they stopped low doc loans in April 2019.

The interest rate was really sharp for a low doc offer and the policy was quite flexible.

Luckily, there are some other specialist lenders that have stepped in to fill the space RAMS left behind.

Some of these lenders operate exclusively via third party channels like mortgage brokers, not directly with the general public.

Which loan features are available?

You can get almost all of the normal home loan features with your low doc loan:

  • Interest only.
  • Extra repayments.
  • 100% offset.
  • Line of credit.
  • Fixed interest rates.
  • Split loans (multiple loan accounts).

The following are generally not available with a low doc mortgage:

  • Third party guarantees (e.g. parents guaranteeing your loan)
  • Introductory interest rates
  • Repayment breaks
  • In some instances, security substitution

In most cases, you would need to lodge a new application so that the lender’s credit department could review your situation at the time that a repayment break or new security property was required.

Who can benefit from a low documentation loan?

Low doc home loans are designed to assist those who have a deposit saved or who have existing equity in a property but are self employed and have difficultly showing proof of their income.

In particular, business owners like sole traders, people in partnerships, or company owners who cannot provide full financials due to complications in their business structure.

Similarly, businesses that have grown significantly in the most recent financial year compared to the previous financial year, hence, their current income evidence does not reflect their actual earnings.

They can also be of use to professional investors, people with fluctuating incomes or people who have had a low income in the last financial year.

A low doc loan may be the best fit for the self employed as minimal documentation is required to qualify for this type of loan.

You may be able to borrow up to 80% LVR (80% of the property value) by providing alternative income verification documents such as financial statements, business bank statements, BAS statements or an accountant’s letter.

To see if you will qualify with a lender for a low doc loan, try out our low doc calculator, submit an online enquiry or call us on 1300 889 743 today!

Should I provide full financials if I can?

Generally speaking, if you can provide up-to-date business income evidence, you should.

The reason is that it drastically increases your chances of approval and your opportunity to qualify for a much sharper interest rate than the rates usually applied to low doc mortgages.

The purpose of a low doc solution is to more accurately demonstrate your actual business earnings.

You cannot present misleading financial information for the purposes of home loan approval and we will not assist you to do so.

When can I refinance from low doc to full doc?

You can refinance out of your current low loc loan when you owe less than 80% of the property value on your mortgage, you are outside of a fixed term and you can provide the following business financials:

  • Two years personal tax returns.
  • Two years personal tax assessment notices.
  • Two years company/partnership/trust tax returns.
  • Two years financial statements (if available).
  • Cameroon

    I’m an IT consultant. I’m applying for a low-doc loan, and I can manage almost 30-40% required deposit. Can I obtain lower rates as full-doc loans?

  • Hi Cameroon,

    It is great that you have 30-40% available for your deposit. If you can provide necessary documents to prove your income, you could apply for a full doc loan. If we could go full doc, the interest rates will be same as a normal PAYG employee home loan. In fact, due to our relationship with most lenders, we could potentially request a special discount for you, if we are able to meet their requirements.

  • MiaB

    Hi, I’m self employed, have a few personal loans (car) and around $3K in savings. I want to buy a property in Queensland which is around $330K and use my parents as my guarantor although they’re not working.

  • Hey MiaB,

    If this is your first home loan, you may qualify for the First Home Owners Grant (FHOG), which can be a big help. Lenders can also be more flexible depending on how you’ve been managing your debts and whether or not you’ve had any defaults or delayed payments. Guarantor owning 20% of security and cross securitising can be an option if your loan application is strong and your rental and car history is great. We will still need to discuss the details so please call 1300 889 743 to speak with an expert low doc mortgage broker.

  • Ryder

    I’ve just recently started up my business venture and so it’s been only around 4 months since I got my ABN. This was the major reason why the bank I applied with earlier rejected my loan application. Isn’t there any way I can get a home loan?

  • Hello Ryder,

    The majority of lenders require you to have an ABN that has been GST registered for two years but this varies between lenders. One of our lenders can accept someone who has had an ABN for less than two years, usually for start up businesses, so please call 1300 889 743 if you want to discuss this with one of our low doc loan specialists.

  • EdwardsE

    I have a small business and I need to borrow to expand it a bit and buy new stock. My home is valued at $600k and it has a mortgage outstanding for $220k. I need $100k to modify the premises and $150k for new stock. My co-applicant actually has unpaid defaults totaling $10k but that’s due to debts accrued because he was following time off as he treated a life-threatening illness 2 years ago. Will that impact the mortgage?

  • Hey EdwardsE,

    That shouldn’t be a major problem. If you can meet the serviceability requirements of the loan by providing at least an accountant’s letter and an income declaration, we may be able to help you find a lender that can refinance the existing mortgage, have the defaults cleared and advance the funds at settlement to have it readily available for your business. Please call 1300 889 743 if you want to discuss in detail.

  • Johs

    What is the typical loan term for a no doc loan?

  • A typical no doc loan term is for up to 3 years interest only but if you’re borrowing at 80% LVR then it would be more expensive and for a shorter term.

  • Lacy

    I’ve been an hair stylist for years. I’ve always had good credit paid bills on time and have always been very responsible with my finances.. I want to buy a home, I run it to lots of trouble and questioning when it come to my taxes.. I have over 50k saved in the bank and im always being question by morgage lenders about my income so the turn me down.. so recently I’ve been filing out mortgage apps online and I’m getting pre approvals and conditional approvals from everywhere! Only beacuse I lied on the Apps and told them I was a nurse.. When they review my credit profile it shows a lot of stability so that why I’m being approved.. However I’m not a nurse but I notice as long as I told the lensers I was self employed they either denied me or ask for a tax forms which has tons of writ-offs on them and then they deny me for that too.. So now I’ve gone as far as now undercontract with this home I love, I have paid the appraisal fees, I have paid earnest money.. But I’m still not a nurse! I have no Docs or nothing to prove this.. but I have shown them my 50k in saving and have agreed to put 10,000 on the home.. I don’t know what to do.

  • Hi Lacy,
    An online preapproval is worthless unfortunately https://www.homeloanexperts.com.au/home-loan-articles/how-reliable-is-your-pre-approval/
    We can help you to borrow 80% of the property value with a low doc loan or 90% with a high lend low doc… at a much higher interest rate https://www.homeloanexperts.com.au/low-doc-loans/high-lend-low-doc/
    If you can then keep it to under 80%!
    Be careful with putting in lots of applications as this significantly lowers your credit score https://www.homeloanexperts.com.au/credit-score-home-loan/

  • Lacy

    Thanks someone emailed me their info.. could you have someone call me tonight?

  • Hi Lacy,
    We only lend in Australia sorry. We can assist you if you’re buying a property in Australia, otherwise you’d need to talk to a local mortgage broker.

  • Frances

    I have a guarantor who is ready to help me with my home loan. He has a property that he owns 100% outright. I actually have around $50k in savings but I don’t want to use them right now. The problem I think with my application is that I’ve recently transitioned into being self employed and my ABN is only 8 months old. I have a YTD income of $135k though so can I qualify for a mortgage?

  • Hi Frances,
    We can help you find a list of lenders that are willing to help but we may need to seek an exception with some of them. Most lenders require that you have an ABN that’s 2 years old so you’ll need to apply with the right lender. Please call 1300 889 743 to discuss your situation and loan needs in detail with a self employed mortgage specialist.

  • Cota

    I wanted to get a low doc loan but I just can’t do that because I can’t prove my income in any way. Is is possible to do a no doc owner occupied home loan?

  • Yes, it is possible to do in a company name though only a few lenders may accept this. It would be best if we have a look at your situation first because if you qualify for a low doc loan, it will be much cheaper than going no doc. Please call 1300 889 743 if you’d like to discuss with an expert low doc mortgage broker. Or simply enquire online:

  • Dickens

    How does a loan classify as a low doc or full doc loan?

  • It’s simple. In cases of self-employed people, there are a lot of documents like individual tax returns, company tax returns and other company financial statements that are required by the banks for income verification. The reason is that the banks see business owners as a higher risk and tend to be more conservative when assessing their loan application.
    So, if you can provide all of the required documents listed above, then it’s considered a full-doc loan, or if few alt docs or an accountant’s letter then it’s a low-doc loan and if no documents at all, then it’s a no-doc loan.
    Please note that while there are low doc and no doc options, you’ll need a bigger deposit and may even be hit with a higher interest rate. If you can genuinely provide extra income evidence or you need to wait to get your latest tax return, we often advise you to do this. In that way, you can apply with a major lender and get a better deal.You could speak with one of our mortgage brokers and discuss further.

  • Dylan9

    I’m a self-employed tiler and have been in this business for the last 5 years. I haven’t lodged my tax returns for this year so I was wondering what alternate documents can I provide instead to apply for a home loan? I’m planning to buy a property for around $600,000 and have around $100,000 in savings.

  • Hi Dylan9,
    Alternate documents or alt docs apart from tax returns are accepted by some select lenders and they could possibly assist you in obtaining a home loan. You may be able to borrow up to 80% LVR (loan to Value Ratio) by providing alternative income verification documents such as financial statements, business bank statements, Business Activity Statements (BAS) or an accountant’s letter. We’re specialists at self-employed mortgages, call us on 1300 889 743 to discuss your situation with one of our mortgage brokers.

  • Alexander11

    I am a construction worker and I earn $1600 a week and collect my pay in cash. Can I get an approval without any payslips?

  • Hi Alexander,
    You can apply for a low doc home loan but the interest rates are generally 2 to 4 percentage points higher than a standard home loan. Can you ask your employer to transfer your pay into your bank account? Once you have more than 3 months history of payslips, you can apply for a standard home loan and avoid paying the excess interest rates.

  • Francois

    I heard CBA and BoQ are no longer offering low doc home loans. Is that true? Are there any lenders that can help me? I’m a self-employed contractor and my last two years tax returns don’t reflect my actual income. I had some personal issues a couple of years ago that saw my income take a hit. My BAS statements better show that I’ve been doing more business as a machine fitter in the last year.

  • Yes Francois, you heard it right. Commonwealth Bank and Bank of Queensland have recently stopped offering low doc home loans and have entirely removed the low doc products from sale. On the other hand, if you have other alternative documents such as BAS statements, business bank statements or accountant’s declaration to prove your income, other non-major banks are more lenient and could offer low-doc loans to you. Know more which banks still provide such products https://www.homeloanexperts.com.au/low-doc-loans/alternative-income-verification/.
    Call us on 1300 889 743 or enquire online https://www.homeloanexperts.com.au/free-quote/ and one of our mortgage brokers will go through the low doc options available to you.

  • Mel


    My husband and I are self employed and have been for 2 years (business has been registered for GST since 2014 but we didn’t start trading straight away).
    We have 1 years tax return and we will lodge last financial years in May next year but we do have all last years BAS statements.
    We were originally looking at options for rent as genuine savings as we pay far more in rent than a mortgage would be but my parents are willing to gift us $50,000 (which would be about 7% of the overall home loan) or go guarantor as they own their house outright. We are not first home owners as we sold our house 2 years ago and put the money into starting our business. Because we have a 2 year old business, we are only starting paying ourselves properly about 6 months ago so we do have payslips but no genuine savings yet – we are just at a point to start saving now. Would we qualify for a low doc loan with 7% or a guarantor or would we need to wait another 12-18 months to save “genuine savings” and then we would qualify for a normal loan as we would have 2 years tax returns?


  • Hi Mel,
    This sector low doc plus guarantor has been restricted nowadays. It may be possible to get around this if the guarantor takes out a loan on their property (as they own it completely now) and lends this to you for you to use as your deposit. Although this is not an ideal situation, it can work for some borrowers.

    Many lenders do not accept this method of financing so it’s wise to speak to a mortgage broker that understands this loan structure. Call us on 1300 889 743 or fill in our free assessment form https://www.homeloanexperts.com.au/free-quote/ and our low doc specialist mortgage brokers will help you.