The landscape of financing has evolved significantly over the years, adapting to the changing needs and preferences of consumers. One notable trend that has gained traction is the rise of Low Doc Loans. These innovative financing options have emerged as a response to the changing dynamics of the modern workforce and the increasing demand for streamlined mortgage processes. In this article, we will delve into the concept of Low Doc Loans, explore their current trends, and speculate on their future role in the financing industry.

Low doc loans are specially designed for the Self Employed Australian who is not entitled to claim traditional loans for purchasing a property. A Self Employed person without  the latest two years of lodged tax returns would not qualify for a residential mortgage. However, low doc loans with low documentation provide such borrowers with a unique opportunity to purchase a property.

There are numerous lenders in the market that offer low doc loans at present. Low doc loans require applicants to verify their incomes in different ways, namely:

Self Declaration of Income plus one of the below documents to support your declaration:

  • An Accountants Letter verifying your income.
  • 6 months of Lodged BAS Statements from the ATO Portal.
  • 6 months of Business Bank Statements.

People who can benefit from the low doc loans include:

Self Employed Directors, Partners, Contract Workers or Sole Traders.

The best feature of the low doc loans is that the borrower gains access to a range of loan features and options that were previously unheard of or unavailable. There is an increasing range of low doc products in the market where lenders offer such loans with the choice of offset or redraw.

Basic guidelines that one should consider:

The applicant should ensure that he is using his business bank account regularly. This is very useful in putting across the point to the lenders that the candidate has an active source of income.

Loan seekers should avoid cash jobs as non-declared income and expenses can reduce borrowing capacity and could severely distort the true health of the business.

Low doc loans are also available for applicants with low credit scores and can no doubt be the best possible solution for any person with a bad credit history.


Low doc loans offer a valuable solution for businesses seeking quick and hassle-free access to funds. By cutting through the red tape of traditional lending processes, these loans empower entrepreneurs and self-employed individuals to secure financing on their terms. However, as with any financial decision, thorough research and careful consideration of the terms and conditions are essential to ensure that a alt doc loan aligns with your business’s goals and financial capacity.