What is a low doc home loan?

A low doc home loan is a type of mortgage designed for individuals who cannot provide the full range of financial documentation typically required for a standard home loan. They are often a good choice for self-employed, small business owners or contractors.

Are low doc and alt doc home loans different?

Low doc (low documentation) and alt doc (alternative documentation) home loans are similar in that both are designed for borrowers who cannot provide standard financial documentation. However, alt doc loans may offer more flexibility in the types of alternative documentation accepted, such as a combination of BAS, bank statements, and other forms of income verification.

Who can benefit from a low doc home loan?

Low doc home loans are ideal for self-employed individuals, small business owners, freelancers, and contractors with irregular income.

Can the self-employed apply for a low doc home loan?

Yes, self-employed individuals often use low doc home loans because they may not have regular income documentation or their payments may be inconsistent or irregular. Self-employed home loans are sometimes referred to as low doc home loans.

Who can apply for a low doc home loan with Rapid Finance?

Self-employed individuals, freelancers, contractors, and small business owners who may have irregular income and less traditional financial documentation are eligible for low doc home loans. In general: - Must be 18+ years old - Must earn over $700 per week (income and/ or benefits) - Must be Australian Citizen or Permanent Resident - No recent unpaid defaults, in the past few months - Under 5 recent dishonours, in the past few months

Can I apply for a low doc home loan with bad credit?

Yes, Rapid Finance specialises in helping individuals with bad credit secure their low doc home loans. We have over 20 years experience getting bad credit home loans approved with our panel of specialist lenders. We will review your situation, credit history and finances and present your application to lenders to highlight your strengths. This will help get your application approved and often with a better loan rate or terms than by applying direct.

What docs are required to apply for a low doc home loan?

You will need to provide alternative forms of income verification such as business activity statements (BAS), bank statements, or an accountant’s letter.

What is the minimum deposit required for a low doc home loan?

The minimum deposit required is typically 5% if you have good credit, and 10% if you have bad credit, when you apply through Rapid Finance. We work with a range of specialist lenders, some requiring only 5% deposit.

What types of properties can I purchase with a low doc home loan?

You could use a low doc home loan to purchase residential properties, including primary residences, investment properties, and holiday homes.

Do low doc home loans require Lender’s Mortgage Insurance (LMI)?

If your deposit is less than 20%, you may need to pay Lender’s Mortgage Insurance to protect the lender in case of default.

Low Doc Home Loans

Self-Employed Home Loan Options

Low doc home loans provide a way for self-employed, small business owners and contractors to get home loans, despite having difficulty obtaining all the documentation, such as payslips, that lenders typically require - and we could help!

Apply with us:

No 'hard' credit check on application
Low doc home loans with bad credit possible
First-time home loans are possible
Low deposit home loan options available
Approvals with Centrelink income possible
Fast home loan approvals possible
Personalised & FREE lending assessment
Affordable terms to suit your financial situation
We are experts in self-employed home loan solutions
Must earn over $700 per week (income and/ or benefits)

Free Financial Assessment

** It won't affect your credit score **

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What Are Low Doc Home Loans?

Low doc home loans, short for low documentation home loans, are designed for borrowers who may not have the full financial documentation required for a traditional home loan. These loans are particularly popular among the self-employed, small business owners, freelancers, and contractors who often have irregular income and may not have up-to-date tax returns or financial statements. They provide an alternative way to get home loans approved.

Key Features of Low Doc Home Loans:

Simplified Documentation: Unlike conventional home loans that require comprehensive financial records, low doc home loans typically need minimal paperwork. This might include a signed income declaration, business activity statements (BAS), or an accountant’s letter.
Flexible Income Verification: Instead of relying solely on traditional income verification methods, lenders may consider alternative forms of income proof, such as bank statements, to assess your borrowing capacity. Which is why these loans are also referred to as 'alt doc home loans'.
Increased Lender Risk: Due to the increased risk associated with lower documentation, low doc home loans may come with higher interest rates compared to standard home loans.
Larger Deposits: Lenders might require a larger deposit for low doc loans, typically starting from 20% of the property’s value. This helps mitigate the risk for the lender.
Lender's Mortgage Insurance (LMI): If your deposit is less than 20%, you may need to pay Lender’s Mortgage Insurance, which protects the lender in case you default on the loan.

Pros and Cons of Low Doc Home Loans

Pros

Accessibility for Self-Employed and Freelancers
- Low doc home loans are ideal for self-employed individuals, freelancers, contractors, and small business owners who may not have traditional income documentation.
Simplified Documentation
- These loans require less paperwork, typically needing only business activity statements (BAS), bank statements, or an accountant’s letter as proof of income.
Flexible Income Verification
- Lenders consider alternative forms of income verification, making it easier for those with irregular income to qualify.
Faster Approval Process
- With fewer documents to review, low doc home loans often have quicker approval times, usually within 24 to 48 hours.
Tailored Financial Solutions
- At Rapid Finance, we offer personalised service to help you find the right loan product for your unique financial situation, leveraging over 20 years of experience in the industry.

Cons

Higher Interest Rates
- Due to the increased risk for lenders, low doc home loans generally come with higher interest rates compared to traditional home loans. However, we could help get you a good deal.
Larger Deposit Requirements
- Borrowers typically need to provide a larger deposit. However, it is possible with deposits ranging from 5% (with good credit) to 10% (even with bad credit) of the property’s value - when you apply though Rapid Finance.
Potential for Lender’s Mortgage Insurance (LMI)
- If your deposit is less than 20%, you may be required to pay Lender’s Mortgage Insurance, which can add to the overall cost of the loan.
Eligibility Criteria
- While low doc loans are accessible to many, they still require a good credit history, a minimum income of $700 per week, and being an Australian citizen or permanent resident.
Higher Costs for Bad Credit
- Individuals with bad credit may face higher interest rates and stricter loan terms, though Rapid Finance specialises in assisting clients with bad credit to improve their credit rating and get loan terms and interest rates that work for them.

Understanding the pros and cons of low doc home loans can help you make an informed decision about whether this type of home loan is right for you. For personalised advice and to explore your options, contact Rapid Finance at 1300 467 274 or start by completing our "Free Financial Assessment" form above.

Is a Low Doc Home Loan Right for You?

Low doc home loans are often well suited to the self-employed, small business owners or contractors, who have difficulty meeting the strict documentation requirements of traditional home loans. Consulting with a specialist home finance broker can help you understand your options and find a loan that suits your needs and circumstances.

Explore your options with our experienced team at Rapid Finance. We specialise in assisting self-employed individuals (plus small business owners and contractors) and can guide you through the process of securing a low doc home loan that aligns with your financial goals.

We work with a range of specialist home loan lenders, who have a range of home loan products which are well suited to people with low docs. Through our relationship with them, our expertise and an understanding of your goals, we can often find a suitable home loan with terms and rates that work for you.

A low doc home loan is a type of mortgage designed for individuals who cannot provide the full range of financial documentation typically required for a standard home loan. They are often a good choice for self-employed, small business owners or contractors.
Low doc (low documentation) and alt doc (alternative documentation) home loans are similar in that both are designed for borrowers who cannot provide standard financial documentation. However, alt doc loans may offer more flexibility in the types of alternative documentation accepted, such as a combination of BAS, bank statements, and other forms of income verification.
Low doc home loans are ideal for self-employed individuals, small business owners, freelancers, and contractors with irregular income.
Yes, self-employed individuals often use low doc home loans because they may not have regular income documentation or their payments may be inconsistent or irregular. Self-employed home loans are sometimes referred to as low doc home loans.
Self-employed individuals, freelancers, contractors, and small business owners who may have irregular income and less traditional financial documentation are eligible for low doc home loans.

In general:
- Must be 18+ years old
- Must earn over $700 per week (income and/ or benefits)
- Must be Australian Citizen or Permanent Resident
- No recent unpaid defaults, in the past few months
- Under 5 recent dishonours, in the past few months
Yes, Rapid Finance specialises in helping individuals with bad credit secure their low doc home loans. We have over 20 years experience getting bad credit home loans approved with our panel of specialist lenders. We will review your situation, credit history and finances and present your application to lenders to highlight your strengths. This will help get your application approved and often with a better loan rate or terms than by applying direct.
You will need to provide alternative forms of income verification such as business activity statements (BAS), bank statements, or an accountant’s letter.
The minimum deposit required is typically 5% if you have good credit, and 10% if you have bad credit, when you apply through Rapid Finance. We work with a range of specialist lenders, some requiring only 5% deposit.
You could use a low doc home loan to purchase residential properties, including primary residences, investment properties, and holiday homes.
If your deposit is less than 20%, you may need to pay Lender’s Mortgage Insurance to protect the lender in case of default.