What is the difference between low doc and no doc?

Low doc, more accurately alt doc, verifies income with BAS, business bank statements and an accountant’s declaration instead of tax returns. No doc, meaning lending on an unverified declaration alone, does not exist in regulated Australian home lending. Anyone offering it is either misdescribing an alt doc product or is not operating within the rules.

How much can I borrow on a low doc loan?

Most alt doc lenders cap the loan at or below 80 per cent of the property value, and some sit lower. Capacity is assessed on the income you declare and evidence, with the same expense benchmarks and buffers a full doc lender applies. It is generally a smaller ceiling than a full doc equivalent.

Do I need an accountant’s letter?

Most alt doc lenders require one, signed by a registered tax agent or qualified accountant who is independent of you. Some accountants are reluctant to sign, because they are attesting that the declared income is reasonable. Where yours will not, there are lenders that accept BAS and business bank statements instead.

How long do I need to have had an ABN?

Commonly twelve to twenty-four months depending on the lender, with GST registration usually held for at least twelve months where turnover requires it. A newly registered ABN narrows the panel considerably, though a longer trading history under a previous structure sometimes helps.

Can I get a low doc loan with tax debt?

Sometimes. Lenders will want lodgements current, the balance evidenced, and an explanation of how the arrears arose. Where the tax debt is the real problem, consolidating it into the loan is often the better structure than borrowing around it. Our debt consolidation home loan page covers how that assessment runs.

Is a low doc loan more expensive?

Yes, generally. The premium reflects the verification method and the risk profile rather than anything about you personally. We do not quote rates. The useful question is whether the premium is worth the timing, and whether there is a credible path back to full doc pricing within a couple of years.

Can I refinance from low doc to a normal loan later?

That is the point of doing it properly. Once you have two years of lodged returns, twelve months of clean repayment history and an LVR below 80 per cent, a mainstream refinance is usually available. We diarise the review rather than leaving the loan to sit at specialist pricing indefinitely.

Will a low doc loan affect my credit file differently?

No. It appears as a mortgage like any other, with the same repayment history reporting. What matters afterwards is conduct. Twelve to twenty-four months of clean repayments on an alt doc loan is one of the strongest arguments for moving to a mainstream lender.

Can I use a low doc loan to buy an investment property?

Yes, with most alt doc lenders, though LVR ceilings tend to be tighter again and cash-out policy is more restricted. Rental income is shaded in the same way it is on a full doc investment loan.

ALT DOC LENDING

Low Doc Home Loans

For business owners whose returns are not lodged, not current, or do not show what the business really earns. Verified differently, assessed just as carefully.

Check my alt doc options 1300 015 267

Verification
BAS, statements, declaration
Typical LVR
80% or below
Lender panel
40+
Assessment
Full responsible lending

Is this you?

If any of these are true, we can help.

Talk it through

Business owners whose most recent return is not yet lodged.
Traders whose last financial year does not reflect current turnover.
Sole traders and contractors between accountants or mid-restructure.
Business owners with tax debt whose lodgements are current but whose returns look poor.
Borrowers with strong equity and strong cash flow whose paperwork does not line up neatly.

How it works

Three moves, in plain words.

01
Settle the alt doc loan
Get the transaction done on terms you can carry, at an LVR that leaves room.
02
Bring lodgements current
Work with your accountant to get returns and BAS lodged and up to date. Nothing else on this list matters until that is done.
03
Keep twelve months of clean conduct
No missed repayments, no dishonours, no new defaults. Repayment history is visible for twenty-four months and it is read closely.

Bring what you have, not what you wish you had

Check my alt doc options 1300 015 267

What low doc means now

Low doc does not mean no doc, and it has not since responsible lending obligations came in. There is no lender in Australia that will write a home loan on your word alone, and any offer suggesting otherwise deserves suspicion rather than interest.

What low doc, or alt doc, actually means is a different route to the same conclusion. Instead of proving income with two years of lodged tax returns, the lender proves it with other documents that show money moving through a real business. The scrutiny is not lighter. It is aimed elsewhere.

Alt doc: The accurate name for low doc. Income verified by documents other than lodged tax returns, under the same responsible lending obligations.
Income declaration: Your own signed statement of what you earn, in the lender’s format. It supports the other evidence rather than replacing it.
Accountant’s declaration: A signed letter from a registered tax agent or qualified accountant, independent of you, confirming the declared income is reasonable.
BAS: Business activity statement. Lodged with the ATO, and used by lenders to cross-check declared income against reported turnover.
Notice of assessment: The ATO’s confirmation of an assessed return. Its absence is what usually pushes a self-employed file from full doc to alt doc.

The detail

How income is verified instead

Alt doc lenders typically accept a combination of the following, and most want at least two of them rather than one.

Accepted verification methods
Method	What it usually involves
Accountant’s declaration	A signed letter from your registered accountant or tax agent confirming the declared income is reasonable. The accountant must be independent of you and appropriately qualified
Business activity statements	Commonly six to twelve months of lodged BAS, with turnover cross-checked against the declared income
Business bank statements	Commonly six to twelve months, showing consistent trading deposits rather than transfers between your own accounts
Self-certified income declaration	Your own signed statement of income, which supports the other evidence rather than replacing it
Interim or management financials	Where the current year is materially different from the last lodged one

What each route asks you to produce

	Full doc	One-year full doc	Alt doc
Two years of returns and notices of assessment	Yes	No	No
One recent lodged return	Yes	Yes	No
Business activity statements	No	Sometimes	Yes
Business bank statements	Sometimes	Sometimes	Yes
Accountant’s declaration	No	Sometimes	Yes
Lodgements up to date	Yes	Yes	Yes
Available above 80 per cent LVR	Yes	Yes	No

Three ways to reach the same approval, and the order matters. Full doc first, then a single-year lender, then alt doc — because every step down usually costs something, and the last one is the easiest to package rather than the cheapest to carry.

General lender practice. Requirements vary by lender.

View as a table

	Full doc	One-year full doc	Alt doc
Two years of returns and notices of assessment	Yes	No	No
One recent lodged return	Yes	Yes	No
Business activity statements	No	Sometimes	Yes
Business bank statements	Sometimes	Sometimes	Yes
Accountant’s declaration	No	Sometimes	Yes
Lodgements up to date	Yes	Yes	Yes
Available above 80 per cent LVR	Yes	Yes	No

The cross-check is where files succeed or fail. If the declared income, the BAS turnover and the deposits in the business account tell three different stories, the assessor stops reading and starts questioning. Consistency matters more than size.

The eligibility basics

An active ABN, usually registered for at least twelve to twenty-four months depending on the lender.
GST registration where turnover requires it, commonly held for at least twelve months.
A clean or explainable credit file. Alt doc and adverse credit together push the file into specialist territory.
Genuine equity. Alt doc lending is generally capped at or below 80 per cent LVR, and some lenders sit lower again.
A security property that is standard residential stock in a location the lender is comfortable with.

Where lodgements are behind, that is the first thing to fix rather than the thing to work around. Most alt doc lenders will want to see that BAS is lodged, even where the balance is unpaid, and an unlodged return blocks the full doc route entirely.

Usual LVR ceiling: 80%
ABN history: 12–24 months
BAS required: 6–12 months
Lodgements: Must be current

What it costs, and why

Alt doc lending prices above full doc lending. We do not quote rates, but the shape of the difference is worth understanding so you can judge whether the trade is worth making.

Where alt doc differs from full doc
Dimension	Full doc	Alt doc
Income evidence	Two years of returns and notices of assessment	BAS, business statements and an accountant’s declaration
Maximum LVR	Up to 95 per cent with LMI	Commonly 80 per cent, sometimes lower
Pricing	Standard	A premium, reflecting the verification method
Mortgage insurance	Standard policy	Restricted, and some lenders self-insure at a fee instead
Cash-out	Standard policy	Often restricted, with tighter purpose rules
Assessment time	Standard	Usually longer, with more questions

The right way to think about the premium is as a cost of timing. If it is the difference between settling now and waiting eighteen months for two years of returns, it is often worth paying, provided there is a plan to move back.

Business records doing the work a tax return has not yet caught up to. — Assessors read these three sources together. Where the declaration, the BAS turnover and the deposits in the trading account tell the same story, the size of the number matters far less than its consistency.

Who low doc genuinely suits

Alt doc is a solution to a documentation problem, not to an affordability problem. It works when the business is genuinely earning and the paperwork has not caught up.

A business trading well this year after a poor prior year, where the last return understates current capacity.
An owner mid-restructure, where entities have changed and the historical returns sit in the wrong name.
A borrower whose accountant is behind on lodgements for reasons that are being fixed.
A business with substantial legitimate add-backs that a full doc lender will not fully recognise.
A borrower with strong equity who needs to settle on a timeline the full doc route cannot meet.

It does not suit a business whose real cash flow cannot carry the repayment. That is not a paperwork problem, and alt doc will not solve it. Where tax debt or trading arrears are the underlying issue, the more useful conversation is usually about consolidating that debt first.

A documentation problem

The business is trading and the cash is arriving. The paperwork is behind, or in the wrong name, or understates the current year.
Deposits in the trading account support the income being declared.
There is equity, and the repayment is comfortable against real cash flow.
Alt doc solves this, and there is a credible path back to full doc pricing within a couple of years.

An affordability problem

The business is not generating enough to carry the repayment, whichever way the income is evidenced.
Trading arrears or a growing tax balance are the reason the figures do not work.
Equity is thin, so a higher-cost structure removes the last of the buffer.
Alt doc does not solve this. Restructuring the debt, or a frank conversation with your accountant, comes first.

Document checklist

What to assemble for an alt doc application
Document	Notes
Identification	For each applicant
ABN and GST registration details	Confirming registration dates
Signed income declaration	Your stated income, in the lender’s format
Accountant’s declaration	Signed by a registered tax agent or qualified accountant
Business activity statements	Six to twelve months, lodged
Business bank statements	Six to twelve months, showing trading deposits
Personal bank statements	Three to six months
Liability statements	Every card, loan and asset finance contract
Rates notice or contract of sale	For the security property
ATO account statement	Where there is a tax balance, with the payment plan status

The plan back to full doc

Alt doc should be a bridge, not a destination. Every alt doc file we write is written with a review date attached to it.

01
Settle the alt doc loan
Get the transaction done on terms you can carry, at an LVR that leaves room.
02
Bring lodgements current
Work with your accountant to get returns and BAS lodged and up to date. Nothing else on this list matters until that is done.
03
Keep twelve months of clean conduct
No missed repayments, no dishonours, no new defaults. Repayment history is visible for twenty-four months and it is read closely.
04
Let the LVR fall
Through repayments, through value, or both. Full doc refinances are easiest below 80 per cent.
05
Refinance to a mainstream lender
Once two years of returns exist and the file is clean, the premium is no longer necessary. We diarise this rather than leaving it to memory.

Run the numbers

See it with your own figures.

Indicative only. Change anything — the defaults are starting points, not quotes.

Who is applying

Applicant

Two applicants are assessed together, with each income taxed on its own.

Gross annual income

Before tax, before super.

Other annual income

Rent, bonuses, overtime, commission. Lenders count only part of it — see the shading field below.

Dependants

Children or others you support financially. Each one lifts the expense floor a lender will apply.

What goes out each month

Living expenses

Groceries, utilities, transport, insurance, schooling, subscriptions. Not rent you will stop paying, and not the new loan.

Existing loan and lease commitments

Car loans, personal loans, buy-now-pay-later, equipment finance, other mortgages.

Total credit card limits

The limit, not the balance. A card you never use still costs you borrowing power.

The assumptions — change these

Other income counted

Lenders shade variable income. Some count 80% of rent, some 70%, some less again for commission. This is a starting point, not a lender's policy.

Monthly charge on credit card limits

A share of your total limits treated as a monthly commitment. Lenders set their own figure. This one is a placeholder.

Surplus held back as a safety margin

Lenders will not let you commit every spare dollar. The rest goes to the loan repayment.

Assessment rate

A lender tests you at its product rate plus its own buffer, not at the rate you would pay. The figure here is an editable placeholder — it is not a rate we are quoting and it is not anyone's current rate.

Loan term

Read this before the number

Every lender assesses differently. Each one uses its own household expenditure benchmark for living costs, its own shading on variable income, and its own rate buffer. Two lenders looking at the same payslips can land more than a hundred thousand dollars apart. This tool is a rough indication built on the assumptions above. It is not a pre-approval, it is not a conditional approval, and no lender has seen your file.

Assumptions

Exactly what this calculator does with your figures:

Income tax is estimated on the resident individual scale applied here: nil to $18,200, then 15% to $45,000, 30% to $135,000, 37% to $190,000, and 45% above that. Rates and thresholds change each financial year — confirm the current scale with the ATO or your accountant.
The Medicare levy is applied at 2% of gross income once income passes the tax-free threshold. The low-income phase-in, the levy surcharge, HELP and HECS repayments, salary packaging, offsets and deductions are all ignored.
Each applicant is taxed on their own income. Other income is split evenly between applicants, then 80% of the after-tax portion is counted.
A minimum monthly expense floor of $1,500 per adult plus $450 per dependant is applied, and the higher of that floor and your own figure is used. On your inputs the floor is $1,500. This floor is a rough stand-in only. It is not any lender’s HEM benchmark — those are not published, and they vary by postcode, income and household.
Credit card limits are charged at 3.8% of the total limit per month, whatever the balance.
20% of the monthly surplus is held back, and the remainder is treated as the repayment a lender would allow.
The loan amount is back-solved from that repayment at 8.50% over 30 years, principal and interest, then rounded down to the nearest thousand.
Not included: lenders mortgage insurance, deposit size, loan-to-value limits, stamp duty, credit history, employment stability, self-employed income assessment, business or tax debt, and any lender-specific policy. Any one of these can change the answer entirely.

Indicative borrowing power

$519,000

A rough shape based on the assumptions you set. Not a pre-approval, and not a figure any lender has agreed to.

Assessed income, monthly: $7,590
Living expenses used: $2,600
Loan and lease commitments: $0
Charge on card limits: $0
Monthly surplus: $4,990
Treated as an affordable repayment: $3,992

Assessed income$7,590

Living expenses$2,600

Commitments and card limits$0

Left for a loan repayment$3,992

The only number that counts is the one a lender puts in writing. Bring us your payslips and your commitments and we will tell you where you actually stand, including which lenders read income like yours the way you need them to.

Get a real number

Open the full calculator

“Tell me the number. I have almost certainly seen worse.”

Dave Pham · Head Broker

Talk to Dave1300 015 267

FAQ

Questions people actually ask

If yours is not here, ask it. We would rather answer the awkward one early than have you find out later.

1300 015 267

What is the difference between low doc and no doc?: Low doc, more accurately alt doc, verifies income with BAS, business bank statements and an accountant’s declaration instead of tax returns. No doc, meaning lending on an unverified declaration alone, does not exist in regulated Australian home lending. Anyone offering it is either misdescribing an alt doc product or is not operating within the rules.
How much can I borrow on a low doc loan?: Most alt doc lenders cap the loan at or below 80 per cent of the property value, and some sit lower. Capacity is assessed on the income you declare and evidence, with the same expense benchmarks and buffers a full doc lender applies. It is generally a smaller ceiling than a full doc equivalent.
Do I need an accountant’s letter?: Most alt doc lenders require one, signed by a registered tax agent or qualified accountant who is independent of you. Some accountants are reluctant to sign, because they are attesting that the declared income is reasonable. Where yours will not, there are lenders that accept BAS and business bank statements instead.
How long do I need to have had an ABN?: Commonly twelve to twenty-four months depending on the lender, with GST registration usually held for at least twelve months where turnover requires it. A newly registered ABN narrows the panel considerably, though a longer trading history under a previous structure sometimes helps.
Can I get a low doc loan with tax debt?: Sometimes. Lenders will want lodgements current, the balance evidenced, and an explanation of how the arrears arose. Where the tax debt is the real problem, consolidating it into the loan is often the better structure than borrowing around it. Our debt consolidation home loan page covers how that assessment runs.
Is a low doc loan more expensive?: Yes, generally. The premium reflects the verification method and the risk profile rather than anything about you personally. We do not quote rates. The useful question is whether the premium is worth the timing, and whether there is a credible path back to full doc pricing within a couple of years.
Can I refinance from low doc to a normal loan later?: That is the point of doing it properly. Once you have two years of lodged returns, twelve months of clean repayment history and an LVR below 80 per cent, a mainstream refinance is usually available. We diarise the review rather than leaving the loan to sit at specialist pricing indefinitely.
Will a low doc loan affect my credit file differently?: No. It appears as a mortgage like any other, with the same repayment history reporting. What matters afterwards is conduct. Twelve to twenty-four months of clean repayments on an alt doc loan is one of the strongest arguments for moving to a mainstream lender.
Can I use a low doc loan to buy an investment property?: Yes, with most alt doc lenders, though LVR ceilings tend to be tighter again and cash-out policy is more restricted. Rental income is shaded in the same way it is on a full doc investment loan.

Credentials

Credit Representative 554029
ABN 20 672 801 651
FBAA member
AFCA external dispute resolution

Other ways we can help

Reading

Worth understanding first

All of home loans

Where we work

Bring what you have, not what you wish you had

Send us the BAS, the business statements and the position on lodgements. We will tell you which lenders can work with it and what the path back to full doc looks like.

Or call us

1300 015 267

Monday – Friday, 09:00 to 17:30

“Tell me the number. I have almost certainly seen worse.”

Dave Pham · Head Broker

Talk to Dave1300 015 267

Low Doc Home Loans

If any of these are true, we can help.

Three moves, in plain words.

Settle the alt doc loan

Bring lodgements current

Keep twelve months of clean conduct

What low doc means now

The detail

How income is verified instead

What each route asks you to produce

The eligibility basics

What it costs, and why

Who low doc genuinely suits

A documentation problem

An affordability problem

Document checklist

The plan back to full doc

Settle the alt doc loan

Bring lodgements current

Keep twelve months of clean conduct

Let the LVR fall

Refinance to a mainstream lender

See it with your own figures.

Questions people actually ask

Other ways we can help

Self-Employed Home Loans

Debt Consolidation Home Loan

Self-Employed Debt Consolidation

Worth understanding first

Low Doc Loans Explained

What Lenders Ask Self-Employed Borrowers For

What Documents Lenders Ask For

Bring what you have, not what you wish you had