What are low doc and alt doc home loans?
Low doc (low documentation) and alt doc (alternative documentation) home loans are designed for borrowers who can’t supply the standard payslips and PAYG records: the self-employed, contractors and business owners. Instead of regular income evidence, lenders accept alternative proof of income and ability to repay.
Who they are for
These loans are designed for people with genuine income that’s harder to document the conventional way: sole traders, company directors, freelancers and seasonal earners. They are still assessed for serviceability. The income just comes from different evidence. Where finances have since become straightforward, a full-doc loan is usually cheaper.
What documents you can use instead of payslips
Depending on the lender, acceptable evidence can include Business Activity Statements (BAS), business bank statements, an accountant’s declaration, or recent tax returns. The more verifiable your income, the closer your rate is likely to be to a standard loan.
How low doc home loans compare
Rates and fees usually sit a little above full-doc loans, and LVR limits are tighter, so the comparison rate matters. Many borrowers refinance to a standard loan once they can show one or two years of tax returns, depending on the lender. Loans can be compared side by side, and the full market is on the home loans hub.