Low Doc Home Loans

Complete Guide

Low Doc Home Loans in Australia — Everything Self-Employed Borrowers Need to Know

A low doc home loan (also called a lo doc loan or alt doc loan) is a mortgage designed for self-employed Australians who cannot produce the full two years of personal and company tax returns most lenders require. Instead of full documentation, you verify your income with simpler evidence: BAS statements, an accountant letter, or six to twelve months of business bank statements. Low doc lending has been mainstream in Australia for more than 20 years and is offered by both major banks and specialist non-bank lenders.

If you are a sole trader, contractor, company director, or partner in a partnership, low doc lending may be the difference between buying the home you want now and waiting another year or two for your tax returns to catch up to your current income. Our brokers place low doc home loans every week — the trick is matching your specific income shape to the right lender on the right terms.

Who is eligible for a low doc home loan?

Low doc home loans are designed for borrowers who can demonstrate they are running an established business but cannot easily provide full tax documentation. Typical eligibility includes:

• You are a sole trader, partnership, company director, or trustee of a business-owning trust.
• Your ABN has been registered for at least 12 months (24 months is preferred by some lenders).
• You are GST-registered (where applicable) and have been for at least 12 months.
• You can produce at least one of: 6–12 months of BAS statements, an accountant letter declaring your income, or 6–12 months of business bank statements.
• Your credit history is clean — defaults, judgements and discharged bankruptcies significantly limit the lender pool but do not always disqualify you (talk to us).

What documents do you need for a low doc loan?

Every lender has its own preferred evidence path. Most low doc lenders will accept one or more of the following alternative income verification documents:

• BAS statements — typically the last 6 or 12 months. The lender estimates your annual turnover and applies an industry-appropriate margin to calculate your income.
• Accountant letter (also called a declaration of income) — your accountant signs a statement confirming your net income for the past financial year. Most lenders accept this if the accountant is a member of CPA Australia, CA ANZ, or IPA.
• Business bank statements — 6 or 12 months showing deposits into your business account. The lender uses gross deposits as a proxy for revenue and applies a margin.
• Personal ID, deposit evidence, and a list of existing debts — standard for any home loan, low doc or not.

Full doc vs low doc home loans — side by side

Low doc home loan interest rates and fees

Low doc loans typically price between 0.30% and 1.00% above the equivalent full doc loan, reflecting the reduced income verification. The exact premium depends on the lender, your LVR, your credit history and the size of the loan. As of 2026, low doc rates from mainstream and non-bank lenders generally fall in the 7.0%–8.5% range for owner-occupier loans and 7.5%–9.0% for investment loans, with comparison rates around 0.20%–0.40% higher to account for application and ongoing fees. For real current rates on the lender panel we work with, see our current rates and fees page.

LVR limits and deposit requirements

Most low doc lenders cap LVR at 80% — meaning you need at least a 20% deposit (plus stamp duty and costs). A small group of specialist lenders go to 85% LVR with Lenders Mortgage Insurance (LMI), and a couple of mainstream lenders will go to 90% for established borrowers with very strong credit history. If you are working with a smaller deposit, a guarantor arrangement can effectively get you to 100% borrowing on a low doc structure as well — the guarantor equity covers the high-LVR portion and you avoid LMI altogether.

Real-world examples — borrowers we have placed on low doc loans

Tradesman, 18 months self-employed. Left his PAYG job to run a residential plumbing business. Wanted to buy a $720,000 home in Sydney south-west. His most recent tax return showed only 6 months of business income at a lower run-rate than his current monthly turnover. We used 6 months of BAS statements with a non-bank lender to evidence current income, settled at 80% LVR with rate 0.45% above the equivalent full doc loan.

Consultant restructured to a Pty Ltd in the last year. Long-term IT consultant who moved from contracting personally to operating through a company. No company tax return yet because the entity was new. We used an accountant letter detailing 12 months of forecast income (supported by historical contracting income), combined with 12 months of business bank statement deposits. Approved at 80% LVR with a mainstream lender at competitive pricing.

Cafe owner refinancing after a slow tax year. Couple running a successful cafe whose most recent tax return showed lower-than-current income due to a one-off equipment purchase that depressed net profit. Full-doc lenders kept declining or approving at half the loan size needed. We used 6 months BAS statements showing actual current revenue, and refinanced their $480,000 mortgage from a major bank to a non-bank low doc lender at a lower effective monthly repayment.

Are you self-employed and looking for a home loan?

We work with self-employed borrowers across Australia every week. If you would like to talk through whether a low doc loan is right for you — or whether a full doc lender might actually approve at better terms for your situation — book a free consultation. We will look at your income, your credit, your deposit and your target property, and tell you honestly which path works best.

Talk to a low doc broker — free assessment

Related services: Self-Employed Borrowers · First Home Buyers · Bad Credit Home Loans · Guarantor Home Loans · Commercial Property Loans · Refinancing