Low Doc Home Loans
Low Doc Home Loans Comparison
When undergoing the process, you can often feel as though you are being interrogated to uncover your entire life story and family history.
For most people providing evidence of their employment and income is as simple as having their boss print off income statements.
However if you are a non-conforming home loan applicant and you are your own boss for example if you apply for a standard home loan you often need much more documentation. That is why low doc home loans are especially popular with Australian homebuyers who are self-employed, and those who for any reason cannot supply sufficient evidence of their income to their lender.
Featured Low Doc Home Loan
Apply for a UBank UHomeLoan (Variable Rate) and secure a low interest rate and borrow up to 80% of the property value.
- Interest Rate of 6.14%
- Comparison Rate of 6.14%
- Application Fee of $0
- Maximum LVR With LMI: 80%
- Minimum Borrowing: $100,000
- Maximum Borrowing: $1,000,000
Featured Low Doc Home Loans
| Home Loan | Details | Interest Rate (p.a.) | Comp Rate^ (p.a.) | App Fee / Ongoing Fee | Max LVR | Min & Max Borrowing | |
|---|---|---|---|---|---|---|---|
 UBank UHomeLoan (Variable Rate) |
One of the low variable interest rates with a low application fee | 6.14% | 6.14% | $0 / $0 | 80% | $100,000 / $1,000,000 |
 
|
 Fox Symes Fixed Rate Home Loan – 3 Year Fixed Rate |
A low interest rate home loan with no ongoing fee and free online redraws. | 6.20% | 6.40% | $Varies / $0 | 95% | $0 / $2,000,000 |
|
 Resi Home Loans – Flexi Fix |
Fix up to 50% of your home loan at a low fixed rate and the other 50% at a low variable rate. | 5.75% | 6.69% | $0 / $0 | 95% | $50,000 / $2,000,000 |
|
 State Custodians Mortgage Company Standard Variable Offset Loan |
A flexible home loan offer with one of the lowest available home loan interest rates in the market. Plus no application and ongoing fees | 6.22% | 6.45% | $0 / $345 | 95% | $150,000 / $2,500,000 |
|
 MyRate Low Doc Loan |
A loan tailored for the self employed with no application fee. | 7.75% | 7.75% | $0 / $0 | 60% | $100,000 / $1,500,000 |
|
State Custodians Mortgage Company Lo Doc Loan |
Flexible options matched by a great interest rate | 7.47% | 7.40% | $0 / $0 | 80% | $0 / $1,000,000 |
|
 St George Low Doc Home Loan <$500k |
Interest only repayment option and redraw facility offered. | 7.95% | 8.14% | $850 / $12 | 80% | $50,000 / $1,500,000 |
|
 NAB National Choice Package ($250,000 and above) |
A lo doc loan with 100% offset, redraw facility and additional repayments | 6.52% | 6.88% | $0 / $395 | 95% | $250,000 / $10,000,000 |
|
St George Portfolio – Home Equity Loan (Advantage Package $250K plus) |
Choose up to 10 separate sub-accounts and choose how you would like to repay the loan. | 7.20% | $0 / $395 | 90% | $250,000 / $1,500,000 |
|
Low Doc Loans: What Are They?
Low documentation loans, also know as low doc loans, are flexible lending solutions for self-employed people. These are great for freelancers, contractors and other people who don’t work regular jobs. A low doc loan is specifically designed with those borrowers in mind who have assets as well as income, but cannot provide a financial statement or tax return as documented evidence of income.
These types of loans use a type of self-verification system where you can state what you make on a declaration document and the lender won’t verify your income by using documentation. While this does mean that you won’t have to give any actual proof of your income, the lender will still do their usual credit scoring as well as confirm that you will be able to pay for your loan with the income which you have stated on your form.
How To Apply For Low Doc Home Loan
While you don’t have to show as much evidence, or in some cases any evidence at all, of your income you still need to complete the loan application process to be approved as a low doc borrower. A low doc home loan application will require:
- You don’t have to show evidence of savings or income. The low doc part of a low doc home loan is the fact that you don’t have to show a lot, and in some cases you don’t have to show any, documentation to have your loan approved. The lender will usually not require you to show a savings history or produce payslips to verify your income amounts.
- Your credit history will be checked. While the lender won’t ask you to verify how much you have earned, they will verify your credit history by checking your credit report. Even though you don’t have to provide documentation on your income you still need to be a good, responsible home loan candidate.
- You can only have a maximum 60% LVR without having to show BAS. Even the requirements of a low doc home loan have changed since the GFC and if your loan to value ratio exceeds 60% you will need to provide recent BAS to prove your income and earnings.
- Self verify your income. Where you don’t need to provide payslips or tax returns with a low doc loan, you simply need to sign a statement verifying that you earn the amount you say that you earn.
- At least a 20% deposit. Even though you are verifying your own income and the bank has checked your credit rating a low doc loan is still a risky option for the bank. Therefore they will require that you provide more substantial deposit for a more secure loan.
Uses Of Low Doc Home Loans
A low doc home loan may seem like a simpler option if you can’t prove to the bank that you earn enough to be eligible for the loan amount you need. However with a higher deposit requirement and the lower loan to value ratio requirement a low doc loan is not possible for every borrower. Instead load of home loans are best suited to you if you are:
- Self-employed. If you are self-employed your business income may fluctuate significantly from month to month or year to year and on your tax returns your income may be reflected as much lower than it is, and much lower than you know you will be in the future. Also if you are self-employed you may only pay yourself a standard wage and run your business in a way which means you fall into a lower tax bracket to avoid income tax, and this does not always reflect your true income amount and what you can afford to spend on your home loan.
- A new Australian. If you are a new Australian then you may not have payslips or tax returns from the work you have been doing since you arrived in Australia. However if you can self verify your income then you can apply for a home loan to really start putting down roots in your new home.
- A property investor. Just as self-employed Australians’ tax returns may not reflect their actual income if you are a property investor you may have a varied income from month to month and from year to year. You may also be more asset rich and this doesn’t always show up on your payslips.
What Lenders Will Offer A Low Doc Loan?
There are quite a few different lenders who will approve your low doc loan, and the home loan requirements will vary from one lender to the next. Here is a short list of some of the lenders who offer low doc loans, as well as some of the products that they can offer you:
- CBA -This bank features the following loan packages: A MAV packages with a standard variable rate, a MAV package low doc loaned line of credit, a low doc MAV package using the standard variable rate – and more.
- Rams- Rams offers their line of credit loan, the SE professional pack, the SmartWay low documentation loan, their low documentation 500 plus (at 80% of the price) and a low documentation line of credit loan.
- Westpac – With Westpac, you can get their low doc Premier Advantage Rocket Repay loan, a low documentation variable investment Premier Advantage, low doc Premium Option home loan and an Equity Access low doc loan
- St.George – St.George features these excellent loans: the low documentation Professional Benefits portfolio, a low documentation Professional Benefits, a variable rate low doc Portfolio Loan, and a low documentation loan with a variable rate.
- Suncorp Bank – Suncorp Bank can offer you these fine choices: Back to Basics variable rate low documentation loan, the Asset Line low document loan, and a standard low document loan with the standard variable rate.
- ANZ – You can get these from ANZ: their Professional Benefits Loan with a standard variable for residential land, the Breakfree Equity Manager loan, the low document Equity Manager 60, a low document standard variable loan.
Who Is Eligible For These Loans?
How do you know if you meet low doc home loan requirements? You will find that these types of loans are normally offered as a way as a way of meeting the requirements of small business owners, freelancers and other people who hold an ABN. They are designed for self-employed people who otherwise wouldn’t be able to get a home loan due to their inability to show how much they earn using traditional methods. You can find low doc loans available for those who have normal jobs, though they aren’t quite as easily available. In order to find the right low doc loan for your, it’s best to speak with a reliable mortgage broker.
Who Reaps Low Doc Loan Benefits?
Low doc loan benefits are much more suited for those who will have saved up a sizable deposit or who already have some equity existing somewhere, but have problems proving their income. You will need to have a deposit equal to at least 20 percent of the price of the property that you are looking into buying.
Many self-employed people turn to low doc home loans to avoid the masses of documentation otherwise required, including tax returns for the past two years, BAS statements and more.
Resorting to low doc bank loans is more than just a matter of simplicity, though, especially when it comes to the real earnings of someone who is self-employed. This is because a tax return will rarely show your real income since there are many expenses, such as depreciation, that are tax deductible but appear only on paper, while you actually get to keep the cash. In other words, your take-home pay can often be a lot higher than what your tax return says, and with low doc loans, you have a better chance of getting your application approved.
The Costs of Low Doc Home Loans
As previously mentioned, the conditions for low doc home loans are more restrictive than standard residential bank loans since they present a higher level of risk for the lender. Thus, you cannot borrow more than 80% of the property’s value and any loan with an LVR higher than 60% will incur an lenders mortgage insurance premium. The latter also tend to be higher on low doc loans than on regular home loans.
To access a low doc loan with an LVR of 60% or below, your ABN needs to have been registered for more than 1 day, to prove your status as a self-employed professional. If you are declaring earnings in excess of $75,000 per year, your ABN must be GST registered. Your credit history also needs to be perfect.
The only difference for low doc home loans with an LVR over 60% is that your ABN needs to have been registered for a minimum of 2 years. You will also be required to pay an LMI premium, which is why you should use a loan calculator to accurately calculate your LVR as this premium can practically double with the increase of the LVR.
Finding the Real Low Doc Home Loans
Due to Genworth Financial’s policy changes in 2009, the number of lenders willing to offer low doc loans with no additional documentation has dropped significantly. Genworth Financial is a mortgage insurer and generally has the final say in the approval of low doc home loans over 60%. As a result, many lenders now require at least a BAS for the past 12 months. However, finding true low doc bank loans, that don’t require BAS statements, is not impossible but the easiest way to do so is with the help of a mortgage broker who knows the market well.
Low doc home loans are a great option for the self-employed, but since they often carry higher costs, borrowers should take the time to work all the figures out using a loan calculator to ensure they can really afford such bank loans. Additionally, it is often a better strategy to wait until you have a 40% deposit so you don’t have to pay the high LMI premiums such high-risk loans incur.
Low Doc Home Loans for Those with Bad Credit Histories
Fox Symes Low Doc Home Loans
Been rejected by too many home loan lenders due to a bad credit rating? Fox Symes can help you find the best home loan in the market regardless of your credit history. Simply fill out a free home loan consultation online and you will be assisted in finding the best home loan and interest rate in the market.
Features:
- Find the best home loan regardless of your credit history
- Compare more than 100 different home loans
- Find the most competitive interest rates in the market
- Ideal for borrowers who have a bad credit history
- 10 minute over the phone pre-approval
- You can borrow from $20,000 to $3 million
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