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Compare low doc home loans in April 2024

Low, or alt doc, home loans are for self-employed borrowers who can't prove their income via regular pay slips. Compare low doc home loans from 7.24% and apply today.

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1 - 8 of 8
Name Interest Rate p.a. Comparison Rate p.a. Fees Monthly Payment
Principal & Interest30% min. depositOwner-occupierOffset account
Interest Rate
7.24%
Comparison Rate
7.27%
Fees
Application: $0
Ongoing: $0 p.a.
Monthly Payment
$1,024
More Info
Principal & InterestInterest only15% min. depositOwner-occupierOffset account
Interest Rate
7.39%
Comparison Rate
7.66%
Fees
Application: $0
Ongoing: $0 p.a.
Monthly Payment
$1,039
Principal & Interest35% min. depositOwner-occupierOffset account
Interest Rate
7.54%
Comparison Rate
7.80%
Fees
Application: $995
Ongoing: $15 per month
Monthly Payment
$1,054
Principal & Interest20% min. depositOwner-occupierOffset account
Interest Rate
7.44%
Comparison Rate
7.47%
Fees
Application: $0
Ongoing: $0 p.a.
Monthly Payment
$1,044
More Info
Principal & Interest20% min. depositOwner-occupierOffset account
Interest Rate
7.29%
Comparison Rate
7.35%
Fees
Application: $495
Ongoing: $0 p.a.
Monthly Payment
$1,029
More Info
Principal & Interest30% min. depositOffset account
Interest Rate
7.54%
Comparison Rate
7.80%
Fees
Application: $599
Ongoing: $0 p.a.
Monthly Payment
$1,054
Principal & Interest30% min. depositOwner-occupierOffset account
Interest Rate
7.69%
Comparison Rate
7.75%
Fees
Application: $0
Ongoing: $0 p.a.
Monthly Payment
$1,070
More Info
20% min. depositOwner-occupierOffset account
Interest Rate
7.49%
Comparison Rate
7.55%
Fees
Application: $495
Ongoing: $0 p.a.
Monthly Payment
$1,049
More Info
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Showing 8 of 8 results

How to compare low doc home loans

Like any other home loan, you can make sure you're getting a good deal on a low doc loan by looking at:

Percentage sign

The interest rate

A lower interest rate makes the loan cheaper. It's the most important factor when comparing home loans.

Features

The loan features

Some low doc home loans let you make extra repayments so you can pay it off faster. A redraw facility lets you access those extra repayments to spend if needed. And a loan with an offset account lets you save money while reducing your overall interest charges.

Fee

The loan fees

Weigh up the loan's overall fees, including application, settlement and ongoing fees. The fewer the fees, the cheaper the loan.

Money bag

The minimum deposit

Some lenders let you borrow up to 80% of a property's value. That means a 20% minimum deposit. For alt or low doc loans lenders often require much higher deposits, but not always.

What are the differences between low-doc loans and regular home loans?

Compared to regular home loans for borrowers with monthly pay slips, low doc loans usually have:

  • A lower maximum loan-to-value ratio (LVR). You can usually only borrow up to 80% with a low doc loan, but some lenders may only lend you 60% – 70% of the property's value.
  • A higher interest rate. This is because low doc borrowers are higher risk.
  • Higher fees. Low doc loans may have higher fees than other loans.
  • Easier approval for self-employed borrowers. If you can't demonstrate you have a regular income via PAYG statements or regular payslips, a low doc loan can be your best chance of getting a home loan.

Am I eligible for a low doc loan?

Low doc home loans suit the following borrowers:

  • Business owners.
  • Self-employed people.
  • Investors.
  • Sole traders.
  • Contract workers and freelancers.

Eligibility requirements differ from lender to lender but you will need an ABN and a good credit history.

You may be eligible for a traditional home loan

If your business is well-established or you've been operating in the same industry for many years, with steady cashflow, and you're able to prove it, some lenders may approve a regular home loan.

Make sure you check with a lender before submitting a full application, or talk to a mortgage broker.

What documents will I need when applying for a low doc home loan?

  • Note: Every lender's policies surrounding low doc loans, including their lending criteria, is different. It is important to read the eligibility criteria for a loan before you apply.

A low doc home loan application will require one or more of the following.

  • Business Activity Statements (BAS). In most cases you'll be required to submit 12 months' worth of statements, which will help your lender decide whether or not you're able to afford the loan.
  • Registered business name and ABN. Your lender will want information about your business, including your registered business name and Australian Business Number (ABN).
  • Self-verified income declaration. Lenders may ask you to sign a statement verifying that you earn the amount you say that you earn, and that you can afford the loan.
  • A letter from your accountant. Similar to the signed income declaration, your lender might also require an income form signed by your accountant.
  • Business bank statements. Depending on what lender you opt for, they may want to see statements from your primary business bank account. These are usually requested for as far back as six months.
  • GST registration information.

Which lenders offer low doc home loans?

Lenders often use different names for low doc loans, including "business home loans" or alternative (alt) doc loans. This is just a small list of some lenders who provide loans for low doc or similar borrowers.

  • Pepper. Pepper offers a range of home loans for self-employed borrowers, which also includes those who have credit impairment.
  • Resimac. Resimac is a non-bank lender that offers alt doc loans.
  • CBA. The Commonwealth Bank lends to business borrowers or self-employed people who are able to pay themselves a regular salary.
  • RAMS. RAMS is a non-bank lender which offers low doc home loans for self-employed borrowers.
  • Liberty Financial. This lender offers alternate documentation loans for self-employed borrowers.

Who offers the best low doc loans?

There's no one best home loan for any borrower. It's all about comparing the rates, fees and loan features.

And the best home loan is often the one you can get when you need it. For some low doc borrowers, an existing business banking relationship with a bank makes it easier to get a loan approved.

If you're starting from scratch, have very limited paperwork or past credit troubles, then a specialist lender like Pepper or Resimac might be better placed to help you.

Other options

  • Talk to a mortgage broker. Brokers are experts who help borrowers find home loans. A good broker can guide you towards a suitable lender that is more willing lend to a self-employed borrower.
  • Standard home loans. Many self-employed borrowers or small business owners may be able to get a standard home loan from a big bank or smaller lender. This is especially true if you've been in business for a while and pay yourself a salary.

Can I refinance my low doc home loan?

Yes, low doc loans can be refinanced. But before you start considering refinancing your low doc loan to get a better deal, keep in mind that you will need to essentially reapply for a new loan. You may be subject to stricter eligibility and documentation requirements.

If you're refinancing to a new home loan for a better rate, remember that sometimes the easiest thing to do is let your lender know you're thinking of refinancing and ask for a better rate.

Looking for a cheap home loan? Compare loans here

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18 Responses

    Default Gravatar
    RichardJuly 18, 2022

    I would like to do a review of my loan and enquire about business opportunities. Can I make an appointment to see a loan manager.

      AvatarFinder
      RichardJuly 30, 2022Finder

      Hi Richard,

      At Finder, we do not offer loans. We just provide general information. You can get in touch with a mortgage broker or contact your chosen lender for assistance.

      I hope this helps

      Kind regards,
      Richard

    Default Gravatar
    MarcusOctober 16, 2021

    I would like to borrow 90-95% for an investment property with my current home equity as warrantor for the new loan. Please let me know if you could help

      AvatarFinder
      RichardOctober 21, 2021Finder

      Hi Marcus,

      Low deposit home loans typically allow you to borrow up to 95% of the property value. If this is the type of loan you’re looking for, you can view available lenders here.

      Please note that this loan program has more rigid application criteria and often comes with additional costs.

      Hope this helps!

      Cheers,
      Richard

    Default Gravatar
    LaraJuly 13, 2017

    I would like to know if there is any possibility of getting a home loan in my situation. My husband and I are both self employed with only 5% deposit. We have no debts. My parents want to guarantee for us.

      Default Gravatar
      JonathanJuly 15, 2017

      Hello Lara,

      Thank you for your inquiry today. :)

      You may consider the low-deposit loans we have featured on our website. It gives you the full-guide on how to apply and which lenders may consider you. Moreover, some lenders may consider giving 100% loan considering that you have your parents’ equity for guarantee. You can read about guarantor loans as your alternative option.

      Hope this helps.

      Cheers,
      Jonathan

    Default Gravatar
    JennyFebruary 24, 2016

    Hi there. Can a person on newstart or disability payment obtain a low doc or no doc loan. I have 70% deposit and would therefore only require a loan of 30%. Thank you, Jenny.

      Default Gravatar
      BelindaFebruary 24, 2016

      Hi Jenny,

      Thanks for reaching out.

      You can learn more about home loans for Centrelink recipientsand how it works. You can also enquire with a mortgage broker to explore your options. A licensed mortgage broker can help you understand your borrowing power and they can recommend products that will be most suitable for you.

      Before applying, please ensure that you meet all the eligibility criteria and read through the details of the needed requirements as well as the relevant Product Disclosure Statements/Terms and Conditions when comparing your options before making a decision on whether it is right for you.

      Your ability to qualify for a home loan will depend on the lender’s individual criteria, the amount of your benefit that you’re using to service the loan, as well as any other income sources or assets that could be used to repay the loan.

      However, if you have a 70% deposit then this may help your chance of being approved but lenders will treat these applications on a case-by-case basis.

      All the best,
      Belinda

    Default Gravatar
    JulieAugust 10, 2015

    HELLO,
    My house is worth $700000 with a $200000 mortgage, which I have been paying off for 5 years without missing a payment. I have recently come in some money, $200000, so I would like to invest in an investment property or 2 if possible.
    My thoughts are that instead of paying off my mortgage, I can buy investment property which will pay my mortgage off when the market rises, and I would still have investment property.
    I can then refinance and pay off my mortgage.
    I am self employed and I have recently had a gap year. Can my financial info be given for the 5 years before my gap year? Can I borrow even though my income on paper has only been $35000?

    thanks
    Julie

      AvatarFinder
      MarcAugust 10, 2015Finder

      Hi Julie,
      thanks for the question.

      The answers to these questions will differ depending on the lender you approach, so it might be a good idea to contact a lender for a loan you’re interested in directly to see what their policies are regarding your income and history.

      Cheers,
      Marc.

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