Low doc home loans make it easier for self-employed and non-traditional earners to secure finance quickly for a home or investment property.
Applying for a home loan often comes with mountains of paperwork, especially if you don’t have the standard proof of income, like a PAYG employee. Providing payslips, tax returns, and other documents can feel overwhelming, particularly for sole traders, business owners, and contractors.
Gathering all this information can slow down or even prevent you from reaching your home loan or investment property goals. This is where a low doc home loan makes a real difference. It allows you to access financing without the traditional income proof, making it easier to achieve both your home ownership and investment property ambitions.
A low doc home loan (also known as an alt doc) is a type of mortgage designed for applicants who cannot provide standard proof of income that is easily verified through conventional channels.
Unlike traditional home loans that rely on payslips and tax returns, low doc loans accept alternative proof of income, such as:
Low doc loans are ideal for:
While low doc home loans are more flexible than traditional home loans, they still have requirements:
For those interested in purchasing an investment property, lenders may also assess potential rental income as part of the application. This makes it possible to secure a low doc loan that supports both owner-occupied homes and investment properties.
With 26 years of mortgage experience guiding him, our Head of Home Loans, Bill Robb, recently witnessed his team turn a complex challenge into a customer success story worth sharing.
“Recently, a couple come to us after finding their dream home, the perfect owner-occupied property they had been searching for. The catch? The home had a tight 7-day finance clause and a 30-day settlement, meaning they had to move fast or risk losing it.
As self-employed business owners, they hadn’t yet completed their financial statements for the year, which made a traditional bank loan impossible within the required timeframe. Waiting for their accountant to finalise everything would have meant missing out entirely.
To keep things moving, we asked for their two most recent lodged Business Activity Statements (BAS) to verify income and confirm they were up to date with their GST and tax obligations. With this documentation, they were able to declare their income confidently and meet the lender’s requirements.
We submitted the application to a lender experienced in working with self-employed clients using alternate documentation. Within just one day, their loan was approved. The clients were able to proceed with the purchase immediately and successfully settled within the 30-day period stated in the contract.
Although their low doc loan carried a slightly higher interest rate, around 0.70% more than a full documentation loan, there were no additional fees, and the difference was minimal compared to the benefit of securing their dream property on time.
In the end, they were able to move into their new home without delay, proving how a well-structured low doc loan can make all the difference when opportunity knocks, and time is short.”
Understanding the pros and cons of low doc home loans ensures you can make the best decision for your home loan goals:
Being aware of these factors allows you to plan responsibly and avoid surprises. Our team will make sure to go over all the details with you to ensure you are aware of everything involved in your low doc loan.
If mountains of paperwork have been holding you back from buying a home or expanding your investment portfolio, low doc home loans offer a practical solution.
Our experienced mortgage brokers on the Sunshine Coast team will do the heavy lifting for you, helping you achieve your home loan or investment property goals.
Give us a call today to explore your options and take the first step towards securing the right loan for your needs.
 Rowdie Lang |
Rowdie has been a part of our Team since 2020. He has witnessed firsthand the ongoing evolution of the finance industry as technology continues to change the way customers' access financial services. He has a passion for helping people and relishes the opportunity to work alongside our teams every day as they help our customers financial dreams come true.
|
 |
Reviewed by: Nathan Drew ✅ Fact checked 📅 Last updated: Dec 10, 2025 |
A “low doc” home loan is designed for people who can’t provide standard income proof, such as self-employed borrowers, contractors, and business owners with irregular income. It allows them to access finance without traditional payslips or recent tax returns.
Instead of payslips, lenders may accept alternative income evidence such as business activity statements (BAS), recent bank statements showing regular deposits, or an accountant’s declaration.
Low doc home loans reduce paperwork, making it easier for self-employed or irregular-income earners to access finance. They can speed up the purchase or investment process and enable homeownership or investment even without traditional income proof.
Borrowers may face higher interest rates, smaller loan amounts, stricter borrowing limits, and often a larger deposit requirement compared with standard home loans, reflecting higher lender risk.
Yes, low doc home loans can be used for both owner-occupied homes and investment properties, provided the borrower meets the lender’s criteria and can provide acceptable alternative income documentation.
