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.

What are the qualifying criteria?

The specific criteria will vary depending on which lender we apply with. However, as a general rule the following criteria will apply:

  • Employment: You must be self employed.
  • ABN: Must have been registered for 12 months.
  • GST: Must have been registered for 6 months.
  • Statements: You must provide 3 – 6 months statements depending on the lender.
  • Loan amount: You can borrow up to 80% of the value of your property.
  • Credit history: Minor adverse credit history can be considered.
  • Property: The security property must be in a good location and good condition.

What if you cannot meet the above criteria? Consider providing BAS statements or an accountant’s letter as evidence of your income.

Please call us on 1300 889 743 or enquire online and one of our mortgage brokers will let you know if you qualify for a low doc loan.

How do they calculate my income?

The lender will print off your business account statements and then add up the credits from customers. Credits from your other accounts are normally excluded.

One of our lenders then uses 60% of the total turnover which is then annualised.

Another one of our lenders uses a different percentage of your income depending on the industry that you are in and the total expenses shown in your account.

In other words, different lenders will assess your income in different ways!

By approaching the right lender with the right documents we can help to get your loan approved.

Can a major bank accept bank statements?

Major banks do not accept bank statements as evidence of your income. This method can only be used with our specialist lenders.

Who is this type of loan suitable for?

This loan is suitable for self employed borrowers who cannot provide financials or tax returns as proof of their income.

Most people prefer to provide BAS statements as evidence of their income for a low doc loan as more lenders are available.

However if your BAS statements are not up to date or your bank account shows a higher turnover than your BAS then you have to consider using your trading account statements.

Apply for a mortgage

Do you need help applying for a low doc mortgage?

Please call us on 1300 889 743 or enquire online and one of our mortgage brokers will provide you with several options from our lenders that accept bank statements as evidence of your income.

  • Lincolnnn

    I don’t have 6 months statements, I have 3 months statements and I’d like to go with a lender that can accept them as I want to buy a property as soon as possible.

  • Hey Lincolnnn, we can help you apply with the right lender for your situation but we will need more information so please call us on 1300 889 743 to discuss this with one of our low doc loan specialists or enquire online and we will contact you instead.

  • Terry

    What do you actually mean when you say minor adverse credit history can be accepted?

  • Hi Terry,

    Minor adverse credit history is generally when the worst bad credit record you have is one to two non-financial institution defaults of less than $500 and no other bad credit records.

  • dudley d

    What if I don’t have an ABN yet? Can I still get a low doc loan?

  • It is possible to get a mortgage despite not having an ABN, however, most lenders that don’t require an ABN will charge you a higher interest rate. This will vary depending on why you don’t have an ABN and the lender itself that considers your application.

  • Un

    Hi, if I use my BAS then how will they calculate my assessable income?

  • Hey Un,
    Each quarter of your BAS’ turnover will be calculated to produce a gross annual turnover. Most lenders will then use 40% of your turnover as your income. However, some of our lenders can use 50% of your turnover, which will vastly increase your borrowing power. One of our lenders uses a different percentage of your turnover depending on the industry that you work in. You can use our BAS income calculator which will work out your income using the same method as three of our lenders:

  • Kyle

    I am not sure if I can qualify for a low doc loan. Can you help me with clarifying this?

  • Hi Kyle,
    If you’re not sure if you qualify for a low doc loan, you can, first, simply try out the low doc loan calculator. It’s designed to assess your situation and identify whether or not you’re eligible. If you’re still not sure or you have any queries, please feel free to contact us to discuss with a low doc loan specialist directly. Here’s the link to the calculator: