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Guide for Self-Employed Borrowers: Low Doc Home Loans

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Entering the finance world, particularly as a self-employed person, can be overwhelming. With numerous loan choices and complex jargon, it’s challenging to know where to start. Luckily, this guide is here to help. With clear explanations and simple comparisons, this article explains the low or alt doc home loan market in Australia, making it easy to understand.

Understanding Low or Alt Doc Home Loans

Suppose you’re a chef without some essential ingredients for your signature dish. In the financial world, this situation can occur when you lack traditional income proof to secure a standard loan. But fear not! There’s a recipe devised specifically for you – the low or alt doc home loans. These loans are tailored for self-employed borrowers, those with irregular income, or those with less-than-perfect credit history. It’s a flexible alternative that necessitates fewer documents than standard loans.

Key Considerations for Lenders

Even though low doc loans offer flexibility, lenders still require certain “ingredients” to assess your loan application. Here are some key aspects that Australian banks and lenders concentrate on:

Income and Assets

While low doc loans demand less income documentation, you must still provide evidence of your income and assets. Items like bank statements, tax returns, and profit and loss statements prove your financial stability. Additionally, your assets – like property, shares, or savings – are analysed to determine your repayment capability.

Credit History

Imagine lenders as historians, meticulously studying your credit history. They’ll examine your credit report, noting any missed payments, defaults, or bankruptcies. A blot on your credit history might not be an absolute deal-breaker, but it could influence the interest rate you’re offered.

Loan-to-Value Ratio (LVR)

Think of LVR as the size of your safety net. For low doc loans, lenders usually prefer a lower LVR to minimise their risk. Generally, an LVR limit of 80% applies, which means you’ll need at least a 20% deposit at hand.

Loan Purpose

The purpose of your loan also falls under the lender’s microscope. Whether purchasing a home, refinancing or investing in property, each purpose may have its specific lending criteria. For example, if you’re eyeing an investment property, you might need to demonstrate potential rental income.


Like any proficient captain, a lender wants to secure the voyage (or loan). Typically, the property you’re purchasing or refinancing serves as this security. Factors like the property’s value, location, and condition will be scrutinised to ensure sufficient security for the loan.

Pro Tip – Charting Your Path to Low Doc Loan Approval

Consider your broker as your financial chef, assisting you in cooking up a winning loan application. Their expertise is crucial in compiling all necessary documentation and ensuring your submission meets the lender’s expectations. A well-prepared submission greatly enhances your chances of a thumbs-up from the lender.


Navigating the process of securing a low or alt doc home loan in Australia may seem daunting. However, by having a clear understanding of lender requirements, gathering the necessary documentation, and seeking the guidance of an experienced broker, you can successfully navigate the process.

Contact us at Unconditional Finance, your expert Sydney-based mortgage brokers, to discuss your unique circumstances. We’re here to craft a solution that perfectly fits your needs.


How can a broker aid my low doc home loan application?

A seasoned broker understands the lender’s expectations and can help prepare a quality submission, ensuring your loan application is accurate and compelling. Their expertise significantly increases your chances of approval.

Are low doc home loans only for those with poor credit history?

No, low doc loans are not exclusively for those with a poor credit history. They cater to anyone who cannot provide traditional income documentation, such as self-employed individuals or those with irregular income sources. They offer flexibility to those who might find standard loans inaccessible.