Low Doc Loan

What is a low doc loan?

A low doc loan is a type of loan that requires less documentation than your typical application. It's often used by investors or self-employed borrowers. 

When would I take out a low-doc loan? 

It’s most ideal to take out a low doc loan if you're unable to provide the standard paperwork typically required for a traditional loan, such as tax returns or PAYG statements. 

This type of loan is often suitable for self-employed individuals or business owners who may not have these documents readily available. To apply for a low doc loan, you may need to provide documents such as your: 

• Business Activity Statements (BAS)
• Australian Business Number (ABN)
• Evidence of at least 12 months of employment in the same industry
• Bank statements
• GST registration information

Do you have to pay higher interest with low-doc loans? 

Low doc loans typically have slightly higher interest rates compared to traditional loans due to the increased risk they pose for lenders. With less documentation required to verify income and financial stability, lenders may perceive borrowers as riskier propositions.

Additionally, because low doc loans are considered niche products, with not all lenders offering them, there's less pressure to offer competitive interest rates.