Low-Doc / Alt-Doc Home Loans

Home Loan Solutions for
Self-Employed Australians

Traditional loans rely heavily on payslips and standard income verification. But if you are self-employed, a contractor, or run your own business — Low-Doc and Alt-Doc loans provide flexible alternatives that reflect how you actually earn.

80% LVRMaximum LVR for most Low Doc loans
60% LVRSweet spot — LMI often waived
2 yrsPreferred ABN active history
2:1Asset-to-debt ratio lenders look for
Income verification

How income is verified in a Low Doc loan

Since you are not providing full tax returns, lenders use a combination of the following to verify your ability to repay the loan.

Business Activity Statements (BAS)

Usually the last 6 to 12 months of BAS to show consistent business turnover and trading activity.

Business bank statements

3 to 6 months of statements showing regular trading and a healthy, consistent cash flow.

Accountant's declaration

A signed letter from your qualified accountant certifying that your declared income is true and the business can comfortably service the debt.

Self-declaration (income declaration form)

A formal Income Declaration form where you state your annual earnings, cross-referenced against BAS and bank statements.

Instead of standard income documents, lenders may accept

Business Activity Statements (BAS)
Accountant declarations
Business bank statements
Alternative financial records
Essential requirements

What lenders require for a Low Doc loan

Because lenders are taking on higher perceived risk without full tax documentation, they tighten requirements in other areas. Here is what they look for.

01

ABN & GST registration

Most lenders require your ABN to be active for at least 2 years. Some specialist lenders may consider 6–12 months. If your business turns over more than $75,000, GST registration is required — lenders will verify your registration history on the ABR.

02

Substantial deposit (equity)

Most Low Doc loans are capped at 80% LVR — meaning you need a 20% deposit. The 60% 'sweet spot': if you have a 40% deposit (60% LVR), many lenders will waive LMI and offer much more competitive interest rates.

03

Clean credit history

Low Doc lenders are very strict about credit health. Because they have less paperwork to rely on, they rely heavily on Comprehensive Credit Reporting (CCR). Even small defaults on utility bills or late credit card payments can lead to an automatic decline.

04

Asset-to-debt ratio

Lenders like to see 'asset wealth.' If you are claiming a high income, they expect to see that reflected in your assets — equity in property, healthy superannuation, or business equipment. A common benchmark is a 2:1 ratio of assets to the loan amount.

Deposit guide

How deposit size affects your Low Doc loan

Your deposit is one of the most powerful levers in a Low Doc application. A larger deposit reduces risk for the lender — and unlocks significantly better terms for you.

20% deposit(80% LVR)

The typical threshold for most Low Doc products. LMI may apply.

✓ Recommended sweet spot
40% deposit(60% LVR)

LMI often waived. Faster approvals, lower rates, and a much smoother application process.

The 60% LVR advantage

At 60% LVR (40% deposit), many lenders will waive Lenders Mortgage Insurance entirely and offer interest rates that are very close to standard market rates. This is the single biggest lever for improving your Low Doc loan outcome.

Why it matters

Why Low-Doc loans matter for self-employed borrowers

You should not miss out on property ownership simply because your income structure is different from a salaried employee.

Opportunity for self-employed borrowers

You should not miss out on property ownership simply because your income structure is different from a traditional salaried employee.

Flexible lending assessment

These loans are designed to reflect real business income rather than traditional employment structures — meeting you where you are.

Things to consider

Low-doc loans may have slightly higher interest rates and stricter lending conditions — which is why expert guidance is essential.

Why self-employed clients choose Kubaer Finance

We specialise in presenting complex financial profiles clearly and professionally to lenders — improving your approval chances and ensuring there are no surprises at settlement.

Lender panel

Lenders we work with

We compare Low Doc products across specialist non-bank lenders and major banks to find the right fit for your business profile and deposit size.

Specialist non-bank lenders

Liberty FinancialPepper MoneyLa Trobe FinancialRedZedResimacBluestone MortgagesRate MoneyMA MoneyFirstmacGranite Home Loans

Major & second-tier banks

Commonwealth Bank (CBA)WestpacSt.George BankBankSABank of MelbourneMacquarie BankAMP Bank
Compare

Low Doc vs Full Doc — key differences

Understanding the key differences helps you know which product applies to your situation — and what to work towards.

Feature

Low Doc

Full Doc

Income proof
BAS, accountant letter, bank statements
2 years personal & business tax returns
ABN requirement
Active 6–24 months (2 yrs preferred)
Usually 2+ years
Max LVR
Typically 80% (60% sweet spot)
Up to 95% with LMI
Interest rates
Slightly higher (risk premium)
Most competitive rates
LMI
May be waived at 60% LVR
Standard LMI rules apply
Best for
Self-employed, contractors, new businesses
Salaried employees & established businesses
Can convert later
Yes — refinance to Full Doc after 1–2 yrs
N/A

Strategy: convert to Full Doc later

Once you have 1–2 years of consistent tax returns showing your income, we can help you refinance your Low Doc loan into a standard Full Doc product at a lower rate. This is a common and effective strategy for new business owners who could not wait for tax assessments to be finalised.

FAQs

Common questions

Everything self-employed borrowers ask about Low-Doc and Alt-Doc home loans.

What is a "Low Doc" loan vs. a "Full Doc" loan?
Do I need an ABN to get a low doc loan?
What is an "Accountant's Letter" and what does it say?
Are low doc interest rates higher?
How much deposit do I really need?
Can I use a low doc loan for an investment property?
What exactly is a "Borrower's Income Declaration"?
Can I switch to a "Full Doc" loan later to get a lower rate?
Is Lenders Mortgage Insurance (LMI) different for low doc?
What happens if I have "bad credit" and need a low doc loan?

Ready to Buy Your Property?

Whether you are purchasing your first home or upgrading to your dream property, we are here to guide you at every step. Enjoy a smooth and transparent loan experience tailored to your goals.