Low-doc home loans for the self-employed

What Moneysmart says

Moneysmart's glossary says a low-doc loan is "a loan that requires less financial documentation to prove income, assets and liabilities than a standard loan". It adds that these loans are "typically used by self-employed people and small business owners", are "usually offered at higher interest rates" and "may include terms that restrict borrowers". The page was last updated on 24 August 2019, so confirm current terms with the lender. We have not found an official source giving a typical rate premium or maximum LVR for low-doc loans, so this guide does not give one.

Responsible lending still applies

ASIC says credit licensees must not enter into a credit contract with a consumer, suggest one or assist with one if it is unsuitable for the consumer. The responsible lending obligations involve making reasonable inquiries about the consumer's financial situation, requirements and objectives, taking reasonable steps to verify their financial situation, and making an assessment about whether the contract is "not unsuitable". Less paperwork does not remove those duties. Each lender decides how it meets them, which is why the documents accepted differ. For how lenders weigh income and spending, see how lenders assess serviceability.

Records worth having ready

Which documents a lender accepts varies, so ask each one for its list. Records that self-employed borrowers commonly hold include:

• personal and business tax returns and notices of assessment;
• business activity statements (BAS), which the ATO explains how to complete, lodge and pay;
• business and personal bank statements;
• financial statements or an accountant's letter, if the lender accepts one;
• your ABN details and how long you have traded.

We have not verified an official list of what lenders require, so treat the above as a checklist for conversations, not a rule. The ATO is the source for how BAS and tax records work, and keeping them up to date makes any application easier.

Full-doc, low-doc and the price

Low-doc loans are priced separately from standard loans. RateSonar's board marks a loan as the lender states it, and we do not add or assume a low-doc premium. As a reference point only, the middle advertised standard variable rate for owner-occupier principal and interest loans is 6.74% as at 2 Nov 2026, with the lowest at 5.69%. That is not a low-doc rate. Ask lenders directly for their low-doc rate, any fees and the maximum loan to value ratio. See what is LVR and the standard rates for comparison.

What to ask

• Is this loan low-doc, alt-doc or full-doc, and what exactly will you accept as evidence?
• What is the rate, and what would it be on your standard loan?
• What is the maximum LVR, and is lenders mortgage insurance involved?
• Are there restrictions on extra repayments, offset or switching?
• What are the establishment, ongoing and discharge fees?
• If my income evidence changes, can I move to a standard loan later?

A mortgage broker can help you find lenders who deal with self-employed income. Ask how they are paid.

Mistakes to avoid

• Assuming low-doc means no checks. The lender must still make inquiries and verify your situation.
• Comparing against the wrong rate. Compare like with like, with fees.
• Leaving BAS and tax lodgments late. Missing lodgments can complicate any application.
• Ignoring the way a low-doc loan is flagged. Ask whether you can refinance once you have full records, using our refinancing guide.

RateSonar does not recommend lenders. Policies differ, so check your own lender.