Low-Doc Home Loans

Looking for a low-doc home loan?

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What Are Low-Doc Home Loans?

Low-doc home loans refer to loans that require fewer documentary requirements than typical home loans. Because these loans pose a higher risk to banks and lenders, they tend to have more restrictions.

Only a few lenders in Australia offer low-doc home loans, while those that do offer them at higher interest rates and in most cases will require at least 20% of the property price as a deposit.

Speak with our mortgage brokers at 1300 312 712 or fill out our assessment form to get started.

How Low Doc Home Loans differ from other loan types

Low-doc home loans typically have more flexible terms and are often designed for non-conventional borrowers. Business owners and self-employed applicants may prefer low-doc options if they cannot provide traditional income verification documents.

These are some of the key distinctions of a low-doc loan:

More flexible income verification options: Instead of tax returns and payslips, low-doc lenders accept alternatives like Business Activity Statements (BAS), bank statements, and accountant’s letters.
Higher interest rates: Since borrowers have a higher perceived risk, low-doc home loans often have higher interest rates than typical home loans
Lower Loan-to-Value Ratio (LVR): Lenders may also offer lower LVRs for low doc options, requiring you to make a larger deposit.
Limited Loan Features: Features, like offset accounts, fixed rates, and redraw facilities, may be unavailable
Additional fees: Many lenders charge higher fees for low-doc options

How do I get approved for a low-doc home loan?

Our senior mortgage brokers will go through the process of getting approved by following these three steps to ensure we help you find the right lender:

Determine which documents you can submit, your finance goals, and which lenders offer low-doc options you qualify for.
Choose the right lender with the lowest fees, interest rates, and LMI premiums.
We’ll present your loan application to your chosen lender and leverage strong points to maximise your chances of approval.

Do I qualify for a low-doc loan?

Like other types of home loans, you need to demonstrate strong borrowing power and a stable income when applying for a low-doc loan, albeit with fewer documents required.

Generally, you must have been self-employed in one industry for at least one year, with your ABN and GST active and registered for at least six months.

Some banks and non-bank lenders offering low-doc options have varying requirements and policies. The maximum LVR you can apply for without paying LMI will be determined on a case-to-case basis, depending on your borrowing power and financial circumstances.

What Documents Do I Need To Provide?

Each lender has varying requirements to verify your income with alternative documents. Nonetheless, you must provide supporting documents such as:

6-12 months BAS statement reflecting a decent turnover (for self-employed applicants)
An accountant’s letter verifying your latest income. Note that the lender may call your accountant to validate the letter.
Business bank statements indicating excellent turnover
Interim financial statements
Verified ABN registration

But before you submit your loan application, it’s best to have an experienced mortgage broker review your documents and address all pain points to ensure a smooth process.

Our Lenders

Low-Doc Home Loan FAQs

Yes. Since low-doc loan applicants are perceived as riskier than those with a typical home loan with complete requirements, banks tend to offer higher rates to compensate for this risk.

The biggest difference between a standard home loan and a low-doc loan is the required financial documentation.

Moreover, because they require less paperwork, low-doc loans are perceived as higher risk; hence, they often have higher rates than standard home loans. Nonetheless, they’re suitable for self-employed applicants with fluctuating income streams and incomplete financial documents.

Choosing the most suitable lender and the right financial solution will depend on your financial circumstances, income stability, and ability to provide complete financial documentation.

Low-doc loans typically offer a lower LVR than professional and standard home loans—mostly 60-90%. The amount of LVR you can take will affect the deposit required, interest rate offered, and the overall cost of the loan.

Because of the risk associated with low-doc options, they often have lower borrowing capacity than standard home loans. Speak with our mortgage brokers at 1300 312 712 to discover how much you can borrow with a low-doc home loan.

Partnering with Zenith Financial gives you access to a wide range of low-doc options from both bank and non-bank lenders. With over 1,000 loans approved and over 50 lenders on our panel, we bring valuable experience to every loan application.

Save time and effort by having all your options managed by one dedicated team. We understand what lenders seek and can identify those most likely to approve your application while negotiating favourable rates on your behalf.

Contact us at 1300 312 712 or fill out our assessment form, and we’ll discuss low-doc options that are suitable for your financial circumstances and long-term goals

Where experience counts

Having encountered thousands of different scenarios, our team is well equipped to find you suitable solutions. Having the right mortgage broker by your side is essential to ensure you are getting the absolute best deal for your unique situation.

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Your success is our success

We understand everyone’s circumstances are different and we take the time to understand you and your goals. We value forming lifelong relationships with all our clients and we are fully committed to adding value every step of the way.

We know that mortgages can sometimes be complex and hard to understand. We focus on simplifying the process for you and we treat your loan as if it were our very own. Let us do what we do best so there’s one less thing for you to worry about.