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Best Low Doc Home Loan Rates

  • Compare low doc home loans, rates and eligibility criteria from 18 Australian lenders
  • Get expert tips on the application process

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Low doc home loans

Compare low doc home loan providers and interest rates

The table below shows a selection of the lenders in Australia offering low doc home loans and alt doc options for self-employed people and other eligible borrowers, based on Money.com.au’s analysis. The table is sorted by lowest comparison rate. Where rates are shown, these are the lowest advertised by the lender. Actual rates may be higher depending on your situation.

Interest rates starting fromDocumentation/eligibility requirementsMax loan amount Max LVR

St.George Bank

5.94% variable (5.95% p.a comparison rate^) Max LVR 70%

  • Fast Track application only requires two most recent personal ATO Notices of Assessment.
  • Self-employed borrowers get the same residential loans, interest rates and features as salary-earners, as long as the loan is in their name.

Not specified

70%

ANZ

6.19% p.a. Basic variable (6.19% p.a. comparison rate^) Max LVR 60%

  • Company director and shareholders paying themselves a regular company wage for 6 months+ may qualify for streamlined application, in which case you’ll need...
  • A valid ABN/ACN which has been registered for 18 months.
  • One payslip dated within 60 days.
  • Your most recent ATO income statement showing your year-to-date salary.

Not specified

95%

Westpac

6.09% p.a. variable 2-year intro rate (6.42% p.a comparison rate^)

‘Fast Track’ application available if you:

  • Can provide your last two years of personal ATO Notices of Assessment.
  • Have been self-employed for more than 2 years.
  • Do not rely on any other source of income to afford your home loan repayments, other than income shown in your Notices of Assessment.

Not specified

70%

Commbank

6.24% p.a. variable (6.62% p.a. comparison rate^) on Wealth Package Home Loan

  • Designed for self-employed business owners.
  • Simplified income verification process.

Not specified

60%

NAB

6.59% p.a. variable (6.63% p.a. comparison rate^) Basic Variable Home Loan

  • NAB says each application is treated individually including eligibility (income details, length of time trading and other requirements).

Not specified

95%

Pepper Money

6.49% p.a. variable (6.67% p.a. comparison rate^) for LVRs up to 65% – higher rates apply for higher LVRs

  • Apply with just 6 months GST & ABN registration.

$2.5m

95%

Bluestone

6.94% p.a. variable (7.00% p.a. comparison rate^)

  • Income verification methods include customer declaration and either 6 months business bank statements or 6 months BAS OR Accountants Letter.
  • No credit score check.

$3m

90%

ORDE Financial (apply through broker only)

6.94% p.a. (7.02% p.a. comparison rate^)

  • Suitable for loans where one or multiple applicants are self-employed and unable to fully verify their income with the most recent years tax returns.

$2m

80%

Resimac

6.99% p.a. variable (7.02% p.a. comparison rate^) Resimac Prime Alt Doc 70% max LVR

Choice of income verification options, such as:

  • Financial Declaration supported by one of the following:
  • Accountant’s Verification (provided the accountant has acted for the applicant(s) for 12 months or greater); or 6 months Business Activity Statements; or 3 months Business Bank Statements.

$2m (70% max LVR) $1.5m (80% max LVR)

80%

Reduce Home Loans

6.99% p.a. variable (7.06% p.a. comparison rate^) on Capitalizer Home Loan) (max LVR 70%)

  • Suitable for for self-employed applicants.

$1m or up to $1.75m with a higher interest rate (+0.30%) and lower max LVR (65%)

80% (higher interest rate applies)

La Trobe Financial

7.34% p.a. variable (7.61%* p.a. comparison rate^) Self-Employed Lite Doc Loan

  • Income verification options include BAS and accountant’s letter.

$25m (70% LVR); $5m (75% LVR); $2m (80% LVR)

80%

Liberty Financial

7.39% p.a. variable (7.66% p.a. comparison rate^)

  • Suitable for self-employed.
  • Flexible income verification.

$2m

85%

Axis Lending

Rates not advertised

  • State what you currently earn and provide your Business Activity Statements and/or your recent business bank accounts to support your stated income, without the need to provide your financial statements or tax returns.

$2m

80%

Connective Home Loans

Rates not advertised

  • Quick doc loan approval based on self-certification of personal and business income.
  • Mid doc loan approval based on self-certification of personal and business income plus one of: last two BAS statements; last six months of business bank statements, or supporting accountant’s letter.

$2m

65% (quick doc); 70% (mid doc)

MA Money

Rates not advertised

  • Self-employed applicants with a business registered in the last 6-12 months have a variety of income verification options.

$2m (MA Money Near Prime)

80% (MA Money Near Prime)

Red Rock

Rates not advertised

  • Choice of supporting documents including accountant’s letter, business bank statement, BAS.
  • ABNs from 6 months
  • No tax returns required

No maximum advertised

80%

Red Zed

Rates not advertised

Borrowers require:

  • 15% equity for Residential Loans
  • 30% equity for Commercial Loans
  • A suitable property to offer as security for your loan
  • A good credit profile
  • A good income

$1.75m

85%

Resi

Rates not advertised

  • Multiple income streams considered.
  • Choice of Income verification options.

$2m (prime alt doc)

95%

Vast Capital

Rates not advertised

  • One accountant letter accepted.
  • Short term ABN accepted.
  • Vacant land accepted.

$5m (for VE Residential Alt Doc Variable Product)

95% (for VE Residential Alt Doc Variable Product)

Rates are current as of 14 November 2023. ^Warning: Comparison rates are calculated based on a loan amount of $150,000 repaid over a 25-year term with monthly repayments. Different loan amounts and terms will result in different comparison rates. Check with the provider for full loan details, including rates, fees, eligibility and terms and conditions to make sure the product is right for you. While this is an extensive list of the low and alt doc home loan providers in Australia, we can't guarantee that all providers available in the market are shown.

What is a low doc home loan?

Low doc (or low documentation) home loans don’t require the standard proof of income and employment that regular home loans do. They are designed for self-employed individuals, contractors, business owners, and other ABN holders who don’t earn a fixed salary.

Low doc loans offer a solution in cases where the borrower cannot provide payslips, tax returns or employment contracts to prove they can afford a home loan.

While low doc loans can be suitable for certain borrowers, there are drawbacks including higher rates interest and fees than the average home loan. This is on account of the higher level of risk for the lender when offering a low doc home loan.

In other ways, low doc home loans are the same as any other loan. For example, there are:

While Australia’s major banks offer low doc home loans to eligible self-employed borrowers, their requirements still tend to be stricter than those of smaller, specialist non-bank lenders.

Low doc vs alt doc vs no doc home loan

The terms 'low doc', 'alt doc' and 'no doc' are sometimes used interchangeably, but they generally refer to different document requirements when applying for a home loan:

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Low doc home loan

Requires a reduced amount of proof to demonstrate to the lender that you can afford the repayments on the loan.

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Alt doc home loan

An alt doc loan offers flexibility in which kind of documentation you can provide when applying for the loan, but there could still be strict eligibility criteria.

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No doc home loan

These are home loans that require the absolute bare minimum of proof. For example, a borrower might only need to provide a statement of income signed by themselves and their accountant.

According to Money’s home loans expert, Mansour Soltani, the less documentation you provide with your application, the more your loan will cost.

Mansour Soltani home loan expert

Mansour Soltani , Money's home loan expert

“There's a product out there for every need. Every borrower will be in a different scenario in terms of what they can and can’t show the lender, and there are some low doc lenders who will ask you for next to no documentation. But they'll charge you for the privilege.”

Mansour Soltani , Money's home loan expert

Who uses low doc home loans?

Low doc home loans are designed for ABN holders who are registered for GST. Some lenders require a minimum trading duration, e.g. 6-12 months.

Here are some examples of borrowers who commonly seek out low doc home loans.

1

Self-employed people and contractors

Particularly for borrowers who have only recently become self-employed, chances are a low doc loan will be required. Some lenders are more likely to accept an applicant if they have previously been a PAYG employee in the same industry.

2

Small-business owners

It’s common for businesses to have volatile income and profit levels, making it difficult for the owner to demonstrate a reliable income to a lender. For example, if revenue was lower than usual in the past 12 months (or expenditure was higher than usual), a business owner may need to prove they can afford a home loan through other means.

3

Bad credit borrowers

“Some low doc lenders don't check your credit rating,” Mansour explains. “They look at other things, such as whether your accountant is willing to sign off on your loan through an accounts declaration.” For this reason, a low doc application is a common option for those seeking a bad credit home loan (aka, ‘near prime’ loan).

The following low doc borrower examples are based on Mansour’s clients who required assistance with their application.

Low doc home loan examples

"A client of mine who runs a funeral parlour just bought another site for his business and he spent $300,000 renovating it. This hammered his borrowing capacity when applying for a home loan.

"If you're a business owner and you've had a lot of capital expenditure that year, a low doc loan can be worth looking at. It means you have flexibility over how you can demonstrate that you can afford the loan. What your business was doing in any given year becomes less of a determining factor."

"For some borrowers I work with, a reason why they don't want to show documentation to the lender is they've been minimising their income to reduce their tax bill.

"So their accountant’s been really creative with their accounting and pushed their income right down.

"The problem is when you then go to the bank and you say 'here's my income tax return', they’ll say that’s not enough for us to give you the loan you want.

"In that case, a low doc loan means the borrower might not need to show tax returns. Instead their accountant can sign a document stating they can afford the loan."

Low doc home loans vs standard home loans

Income requirements

Low doc home loan

Flexible (fewer) income verification requirements.

Standard home loan

Full documentation required to prove your income.

Low doc home loan

Usually up to 85% but varies by lender.

Standard home loan

Usually 95% (with lender’s mortgage insurance).

Interest rates

Low doc home loan

Depends on the application but generally high compared to standard loans.

Standard home loan

Lower than low doc rates but vary based on the LVR and other factors.

Fees

Low doc home loan

Usually higher than standard loans. Additional ‘risk fees’ may apply based on a percentage of the loan amount.

Standard home loan

Application

Low doc home loan

Some lenders only allow applications through a mortgage broker.

Standard home loan

You can usually apply directly with a lender or through a broker.

Low doc home loanStandard home loan

Income requirements

Flexible (fewer) income verification requirements.

Full documentation required to prove your income.

Usually up to 85% but varies by lender.

Usually 95% (with lender’s mortgage insurance).

Interest rates

Depends on the application but generally high compared to standard loans.

Lower than low doc rates but vary based on the LVR and other factors.

Fees

Usually higher than standard loans. Additional ‘risk fees’ may apply based on a percentage of the loan amount.

Application

Some lenders only allow applications through a mortgage broker.

You can usually apply directly with a lender or through a broker.

The table above highlights a few key differences between low doc home loans and regular home loans that are important to understand before making an application.

How to apply for a low doc home loan

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1. Book a consultation with a home loan specialist or mortgage broker

This step isn’t always necessary with a standard home loan, but almost always is with a low doc application. This will allow your lender or your broker to understand your situation and, based on that, which loans you’re likely to be eligible for. At this stage they will also let you know what documentation you will be able to apply with.

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2. Submit an application form

This will include information about yourself (plus any joint applicants), your business, assets you own, other debts and dependents you have, plus details about the loan you’re applying for (e.g. loan amount and duration).

receipt

3. Provide supporting documents

You’ll also need to submit any documents you discussed with the home loan specialist or your broker. This often means speaking to your accountant to request documents or signed declarations.

home

4. Property valuation and contract of sale

As a final step in the application process, the lender will arrange a valuation of the property you’re buying to ensure its value is high enough relative to the loan amount. You’ll also need to provide a contract of sale for the property. If the lender is satisfied, your loan will be approved and the funds released to the seller (a process known as settlement).

Documents needed for a low doc home loan

The documents you’ll need to submit will vary based on the lender and your situation. The time frame covered by the documents can also range from 6 months - 2 years or longer.

Generally speaking, lenders may accept the following documents (or a combination of them) as proof of eligibility:

  • Proof of ID (passport, driver’s licence)
  • Most recent Personal Tax Return and Notice of Assessment (NOA)
  • Statement or Tax Return
  • Business bank account statements
  • Proof of ABN and GST registration
  • PAYG Payment Summary/'Tax ready' Income
  • Business Activity Statement(s) (BAS)
  • Financial statements executed by an accountant

Plus...

  • An income statement signed by you and your accountant declaring your financial position and that you can afford the loan repayments.

Low doc approval based on income declaration

Mansour Soltani home loan expert

Mansour Soltani , Money's home loan expert

“I'm helping a client at the moment where he's going to sign an income declaration and his accountant is going to sign a declaration. The lender views that as two income verifications, but will charge a risk fee and a high interest rate. If you want a lower risk premium, you'll need to provide more verification, such as bank statements showing how much money is going into the account. Basically you can choose how much documentation you want to hand over – just remember the lender will choose an interest rate to match.”

Mansour Soltani , Money's home loan expert

Remember, if you need to apply for a home loan with minimum documentation initially, you can always refinance it to a better rate down the track when your business is more established or in a more stable financial position.

Low doc home loan features that can save you money

Low doc home loans are usually available with all the same features that regular loans have. And given rates and fees are usually higher on low doc loans, getting a loan with features that can minimise interest costs is usually a priority for borrowers.

  • Repayment flexibility: Many contractors, business owners and self-employed people have irregular income, sometimes with large one-off payments coming in at once. Having the flexibility to put these lump-sum payments towards your mortgage (without penalty fees applying) could help you pay it off quicker and reduce the amount of interest you pay.
  • Redraw facility: A redraw facility allows you to access any extra repayments you’ve made on your home loan if you need cash.
  • Offset account: A low doc home loan with an offset account reduces the amount of interest charged on the loan by linking a savings or transaction account to the loan. Interest is calculated on the loan by deducting your offset account balance from your home loan balance. If you’ve got savings or other cash sitting on the sidelines, an offset account could save you thousands of dollars over the life of the loan.

Learn more about how a home loan offset account and redraw facility differ.

Home loans guides & resources

What's the next step on your property journey? Our home loan guides will help you navigate the road ahead, whether you're buying, building or looking to save on an existing loan.

Low doc home loan FAQ

Because low doc home loans are considered risky by lenders, they often have a lower maximum LVR of 60%. In other words, low doc borrowers may require a deposit of at least 40%.

Some lenders will allow an LVR of up to 90% or even 95% if you can prove that your income can service the mortgage but you will usually have to pay lender’s mortgage insurance (LMI) if your LVR is above 80%.

LMI is a one-off cost charged by your lender to protect them against losses in the event that you can’t make mortgage repayments. It can cost several thousand dollars and can usually be rolled into your mortgage so that you don’t have to pay it upfront.

Yes, there are low doc home loan options available from some specialist lenders for borrowers with bad credit (near prime). These loans are generally more expensive than prime loans.

Low doc home loan interest rates are usually higher than regular home loan interest rates because lenders view low doc borrowers as being higher risk. However, if you have a deposit of 40% or more you may be able to secure interest rates that are comparable to those of standard home loans.

Each of Australia’s big four bank, as well as a range of specialist non-bank lenders in Australia offer low doc home loans for self employed business owners:

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  • ANZ
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  • Axis Lending
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  • Bluestone
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  • Commbank
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  • Connective Home Loans
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  • La Trobe Financial
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  • Liberty Financial
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  • MA Money
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  • NAB
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  • ORDE Financial
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  • Pepper Money
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  • Red Rock
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  • Red Zed
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  • Reduce Home Loans
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  • Resi
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  • Resimac
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  • St.George Bank
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  • Vast Capital
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  • Westpac
Sean Callery Editor Money.com.au

Written by

Sean Callery

Sean Callery is the Editor of Money.com.au. He has over 15 years of international experience. He is qualified with a Certificate IV in Finance and Mortgage Broking (FNS40821) and is compliant to provide general advice in Tier 1 General Insurance (RG 146) products.

Mansour Soltani home loan expert

Reviewed by

Mansour Soltani

Mansour Soltani is Money.com.au’s home loans expert. He’s a mortgage broker with more than 20 years of experience in the finance and real estate industry. Mansour is the Director of Soren Financial and has been featured in publications such as the ABC, Domain.com.au and Australian Broker.

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