Not sure about low doc home loans? Qualifying for any loan can be a challenge when you don’t receive a monthly pay check. It’s a nightmare for those looking to get on the property ladder because they often aren’t eligible for traditional home loans. Of course, lenders want low-risk borrowers, so they take a very close look at your income. Unfortunately, when you’re a casual worker, contractor or self-employed, that often means your financial documents won’t meet the lender’s strict criteria.  

So, could a low documentation or self-employed home loan be the answer to your problems? 

Understanding the Low Doc Home Loan 

Low doc home loans are loans that were designed for contractors and self-employed individuals. So, if you have a job that doesn’t offer proof of regular income, low documentation loans can be a godsend. Of course, while documentation can be somewhat less exhausting, proof of income is required. Typically, lenders will accept alternative evidence to prove your income. This has allowed more to get on the property ladder for the first time.  

What Evidence Do You Need to Provide for a Low Documentation Loan? 

Lenders will typically need to see proof borrowers have the means and abilities to repay the loan. For example, some lenders may require your latest tax return and your Australian business number. Others may want additional information, such as your personal and business bank statements for the last twelve months. This gives lenders an idea of the type of funds you have available and whether you’re stretching beyond your limits. It might seem intrusive but it’s far less scrutiny than with full-doc home loans. Check out to find out more.  

It’s Best to Save for a Sizeable Deposit 

There is much confusion over deposits with a low doc home loan. The reality is that there is no set limit on deposits as each lender sets the criteria. For example, some lenders will require a 20% deposit. Some, however, will require substantially more. It typically depends on the lender and your credit score and history.  

What Can You Do to Improve Your Chances? 

Every borrower has a risk attached to them. Lenders know about these risks and look for ways to reduce theirs – typically by setting the approval bar high. A low doc home loan lender will look for good risks which means they take an interest in your finances. So, your current and past finances must be in good shape. You need to make sure your credit report reflects positively on you too.  

For example, you have defaulted on two loans in the past two years. This is a red flag to any lender, even low doc ones. So, you need to do what you can to rectify the situation – pay the loans off. It’s the same with savings. The more savings you have, the less risky you are in the eyes of the lender. To find out more, check out 

Low Documentation Home Loans are Perfect for Your Needs 

A lot of people dislike the notion of low doc loans and it’s understandable. Like everything in life, they have good and bad points. You shouldn’t dismiss a low documentation home loan until you know more about it. Low doc and self-employed home loans are viable on so many levels and can enable you to get on the property ladder for the first time. Low doc home loans can help those who don’t qualify for traditional lenders.  Red more: