Low doc and alt doc loans
A low doc (or alternative documentation) loan assesses a self-employed borrower's income from documents other than two years of tax returns, such as BAS, business bank statements or an accountant's declaration; it is never a loan without an assessment.
Low doc and alt doc loans, explained.
Low doc suits businesses whose latest returns are not yet lodged, whose income has grown since the last return, or whose accounts do not reflect the cash the business now earns. The lender still verifies the income; it uses different evidence to do so.
Alt doc loans usually carry a higher rate, a lower maximum LVR, and sometimes a risk fee, because the lender is relying on less history. Moving to a full doc loan once two years of returns exist is often the second step.
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The Learn section is general information about lending in Australia. It does not take account of your objectives, financial situation or needs, is not credit assistance, and is not tax, legal or financial advice. Lender policies, government schedules and regulations change; check the current position with the relevant body or with us before relying on it.
