BankSA Low Doc Home Loan

A home loan suitable for the self-employed and business owners with an irregular income flow.

A BankSA Low Doc home loan offers a range of features for those who are self-employed, including a discount of up to 0.70% p.a off of the variable interest rate if eligible. Many self-employed borrowers do not have the requisite proof of PAYG to apply for standard home loans; so this loan is a way around the problem.

Self-employed people and business owners can choose a fixed interest rate, variable interest rate or a combination of the two with the BankSA Low Doc home loan.

Things to consider about the BankSA Low Doc home loan.

The BankSA Low Doc Home Loan is suitable if you’re in charge of your own income such as business owners and those who are self-employed. The loan is suitable for the purchase of property and vacant land and can also be used for building purposes.

It can be used for up to 80% of the value of the property secured on the variable or fixed interest rate Low Doc home loan. Borrowers are required to obtain Lender’s Mortgage Insurance (LMI) if they borrow more than 60% of the full value of the property.

Features of the BankSA Low Doc home loan

Simplified application documentation. Unlike other loans that require PAYG proof of income, this type of loan only requires that you provide the last 12 months of Business Activity Statements, or loan statements for the last six months if an existing loan is being refinanced. You can also use your latest account statements on any other debt loans that are not being refinanced.

Ability to split your loan. Borrowers can set part of the loan at a fixed interest rate and the other part can have a variable interest rate using Flexible Choice over periods of 1, 3 or 5 years.

Lock in a fixed rate. By using rate lock you can set a fixed rate for up to three months before the loan settles.

Full interest offset or partial interest offset account. By using a full interest offset for a variable rate loan, the borrower can save interest by offsetting any funds into a linked BankSA Complete Freedom account. If you opt for a fixed rate loan, you can choose a partial interest offset account.

Additional repayments. You can make additional repayments on this loan. With a fixed rate loan this is limited up to $10,000 per year before break costs are applicable.

Redraw facility. You can access any extra payments made by requesting a redraw, as long as it is in compliance with the variable interest rate of your Low Doc Home Loan. The maximum amount you are able to redraw on a fixed rate loan is $10,000 per year before incurring break costs.

Deposit protect bond. You can use this feature as an alternative method to an immediate cash deposit on your property. That way you can keep earning interest on deposit money until the settlement of your loan. This method can also be used when utilising equity in existing properties to help finance any purchases.

Loan amount and changing options. You can apply to borrow up to 80% of the value of the property with variable or fixed interest rate BankSA Low Doc home loan. LMI is required if you borrow more than 60% of the value of the secured property.


Fees you can avoid

  • LMI is waived if you borrow 60% or less of the property’s value.
Fees you can’t avoid

  • An establishment fee of $750.
  • A settlement fee of $100 is charged to cover the cost of settling funds.
  • The monthly administration fee of $12 per month is mandatory.
  • A valuation fee is charged, although the exact amount of this will depend on where your property is and some other factors.

How to apply for the BankSA Low Doc home loan

  • Step 1. Go to the BankSA enquiry page. The first part of the application process involves you providing some general identification details and communicating the type of loan you are applying for.
  • Step 2. Confirmed approval will be given as and when BankSA have reviewed the information you have supplied in your application. Confirmation is carried out quickly in order to let you know if you are eligible for the loan you have applied for.
  • Step 3. Verification will be requested and you will need to send supporting documents that back up and verify your claims and prove that the provided information is legitimate. These documents will include savings history and proof of income; such as the last two consecutive pay slips or your most recent employment contract with salary details. You will also need to provide details of borrowing purposes and any other loans you may have.
  • Step 4. Valuing your home is the next part of the process. An independent property valuer will visit your home to evaluate your property to ensure the value of your home is right for the loan details.
  • Step 5. Assessment will be carried out with reference to all of the information provided in order to make a final decision as whether or not you qualify for the loan.
  • Step 6. Approval. If you meet the full requirements for the loan you will be sent full details of the loan agreement, terms and conditions and the contract for you to check, sign and send back.
  • Step 7. Agreed Settlement. Once the contract has been signed, the agreement is settled and the loan is officially yours.
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