For individuals who are self-employed, managing intricate business structures, or facing overdue Tax Returns, a Low Doc Loan might offer an optimal solution for their financial requirements.

What documentation is necessary for a low-doc loan?

A low-doc home loan entails fewer prerequisites compared to a full doc home loan, although proof of income is still essential. The specific documents required may vary among lenders but could encompass:

• Business bank statements
• A letter from your accountant
• Your ABN
• GST registration
• BAS returns
• Tax returns if available

Some lenders may permit applying for a low-doc loan with a signed declaration affirming the ability to meet repayments. However, these loans typically carry higher interest rates and fees due to being perceived as higher risk.

Low doc home loans are suitable for individuals who:

• Have been self-employed for at least 6 months
• Have outdated tax returns and financial records
• Experience fluctuating income
• Prefer the convenience of providing an income declaration instead of 2 years of tax returns and financials
• Have faced rejection for a home loan from their bank

A self-employed borrower typically needs to provide proof of income using a combination of the following:

• Proof of ABN and/or GST registration
• Business activity statements (BAS)
• Business account transaction statements
• Letter from an accountant
• Business and personal tax returns