Looking to purchase a home as a self-employed individual? A low doc home loan can help you meet the challenges of having limited financial documentation.

Low doc home loans are a specialised financial product that differs from standard home loans in the type of required documentation that applicants need to submit for approval.

Despite their title, low doc loans do not require less documentation from applicants to demonstrate their financial ability and history — this type of evidence that is accepted by lenders is simply different under a low doc loan.

Low doc loans are typically suitable for borrowers who can’t provide the standard paperwork (i.e. tax returns or PAYG) that more standard loans require.

Business owners, entrepreneurs, and self-employed individuals are examples of the type of applicants that low doc loans would be ideal for, as these groups generally do not have the usual type of financial receipts that employed applicants would, such as monthly payslips.

The main value of low doc home loans is that they provide potential borrowers with an easier way to access funds for a home purchase by simplifying the documentation requirements.

Naturally, this results in slightly more perceived risk for lenders, which is why low doc loans can come with higher interest rates or even stricter loan terms such as a higher deposit requirement (up to 40%).

What Type of Documents Are Required for Low Doc Home Loans?

Most lenders of low doc home loans will generally require applicants to provide:

  • Business Activity Statements (BAS)
  • Australian Business Number (ABN)
  • Evidence of a minimum of 12 months of employment in the same industry
  • Bank statements
  • GST registration information
  • A letter from a legal accountant confirming your finances
  • An income declaration form with self-verification

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