A low-doc home loan lets self-employed borrowers prove their income with alternatives to full tax returns – such as BAS, bank statements or an accountant’s letter.
They exist because many business owners, sole traders and contractors earn well but cannot show it the traditional way, perhaps because their tax returns are not yet finalised or understate current earnings.
As your Perth broker, The Finance Yogi knows exactly which lenders offer low-doc loans and on what terms.
With a low-doc loan, instead of two years of tax returns you provide alternative evidence of income. Common options are six to twelve months of Business Activity Statements, business bank statements showing turnover, or a signed declaration from your accountant.
The lender uses this to form a reasonable view of your income. Responsible lending rules mean you still have to demonstrate you can afford the loan – no-doc loans, with no income evidence at all, are no longer available in Australia.
Because the lender takes on a little more risk, low-doc loans usually cap borrowing at 80% of the property value.
Low-doc lending is not a loophole – it is a legitimate, responsible way for capable self-employed borrowers to buy.
We match you with a specialist low-doc lender and present your evidence so your application is assessed fairly and competitively.
If your latest tax return does not reflect how your business is performing now, a low-doc loan can bridge the gap.
Not sure which path suits you? Our self-employed home loan requirements guide compares full-doc and low-doc side by side.
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Most low-doc loans cap borrowing at 80% of the property’s value, so you generally need a deposit of at least 20% to avoid Lenders Mortgage Insurance.
Some lenders will go higher than 80% with LMI, but the premiums are steeper on low-doc loans, so a larger deposit usually pays off.
Plan your deposit: grants, gifts and genuine savings can all help. Our guide on how much deposit you need for a house in WA breaks it down.
Low-doc rates can be slightly higher than full-doc rates, because the lender has less income evidence to rely on. The gap has narrowed in recent years as more lenders compete for self-employed borrowers.
In many cases the small rate difference is far outweighed by simply being able to buy now rather than waiting another year for tax returns.
We compare low-doc lenders to find the sharpest rate for your situation. See the full service on our self-employed home loan Perth page.
Applying starts with gathering your income evidence – BAS, bank statements or an accountant’s declaration – and confirming your deposit position.
We then match you to a low-doc lender, package your evidence clearly, and manage the application so it is assessed on its merits.
Once approved, we guide you through valuation and settlement. For the full picture, read our complete self-employed home loan guide for WA, or explore our finance services.
Book a free, no-obligation chat and we will match you to a low-doc lender that fits your business.
Source: home loan and income-verification guidance from ASIC MoneySmart, and business income information from the ATO. Confirm lender policies before you apply.
