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Low Doc/No Doc

For many self-employed people, the biggest barrier to buying a home is gathering all the documents necessary to qualify for a home loan. In most cases, self-employed applicants must provide several years of tax returns, financial reports and/or pay slips. This can be very time consuming and costly.

However, with a no-document home loan (or no-doc loan for short), applicants simply fill out an income declaration form stating their income and assets. This process is called self-verification.

Types of loans

There is a growing range of no-doc products on the market, with many lenders offering standard and premium no-doc loans with the choice of fixed or variable interest rates. Borrowers also get access to a range of loan features and new options not previously available.

However, most lenders require no-doc borrowers to take out lenders’ mortgage insurance when borrowing up to 80 per cent of the property value. Some lenders also charge a higher interest rate for these products. These rates may be reduced after a certain time period or when you are able to provide tax returns.

The challenge is to find the best loan with the best features for your particular circumstances. That’s where our team of experts can help.

At a Glance

less paperwork - requires self-certification instead of traditional proof of income
streamlined application process
can only borrow up to 80 per cent of property value
interest rate discounts may apply after specific time period
may be eligible for lower interest rate if able to supply tax returns at a later date
requires clean credit history
lenders may not lend in high risk areas such as inner city high-rises or large rural allotments
generally higher interest rates with less features than a traditional loan
may require lender’s mortgage insurance

Low Doc Loan

A low-doc or no-doc loan is ideally suited for investors or self-employed borrowers looking to refinance, purchase or renovate. No tax returns or financial reports are required.

At a Glance

Simple income declaration form
No tax return
No financial records
Fully serviceable loan options, redraws, line of credit, variable or fixed rates
P&I or interest only loans