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Self‑Employed in Alexandria? Pick Full‑Doc, Alt‑Doc or Low‑Doc Safely
A blunt, decision‑grade guide for self‑employed Alexandria and Green Square borrowers choosing between full‑doc, alt‑doc and low‑doc home loans this week.
Key Takeaway
Self‑employed Alexandria borrowers should generally prioritise full‑doc home loans because they offer the sharpest rates and widest lender options, while alt‑doc suits borrowers whose true income is strong but whose tax returns lag reality. Indicatively, alt‑doc rates can sit 0.5–2.0 percentage points higher than comparable full‑doc loans, reflecting extra risk pricing. The actionable step is to map your current documentation, choose the least expensive viable path now, and set a clear 6–24 month plan to move toward full‑doc lending.
This topic is covered in full on Tailored Loans Sydney
A blunt, decision‑grade guide for self‑employed Alexandria and Green Square borrowers choosing between full‑doc, alt‑doc and low‑doc home loans this week.
Read the full guide on tailoredloans.sydneyMost self‑employed Alexandria borrowers should aim for full‑doc first, use alt‑doc as a stepping stone when needed, and treat true low‑doc as a niche, last‑resort tool.
The right pathway depends on your tax returns, BAS and bank statements right now, how fast you need to move, and how much extra you’re willing to pay in interest.
Organising your documents is the first step to choosing between full-doc, alt-doc and low-doc.
1. Quick definitions: what full‑doc, alt‑doc and low‑doc really mean
Full‑doc (mainstream lending)
You prove income with:
- 1–2 years’ personal and business tax returns and notices of assessment, plus
- Recent financial statements and possibly payslips/dividends.
Pros:
- Sharpest rates and fees
- Broad lender choice and policies
- Highest max LVRs in many cases
Cons:
- Must live with whatever income your returns actually show
- Slower if your returns or financials aren’t ready
Alt‑doc (alternative documentation)
You can’t (or don’t want to) rely on lodged tax returns, so income is evidenced with combinations of:
- BAS statements (usually last 12–24 months)
- Business and sometimes personal bank statements (6–12 months)
- Accountant’s declaration
Pros:
- Uses more current trading data when tax returns lag
- Often faster to arrange than full‑doc when accounts are messy
Cons:
- Higher rates than comparable full‑doc (often +0.5% to +2.0% p.a.)
- Tighter maximum LVR and stricter cash‑out rules
Low‑doc (true limited documentation)
Minimal income evidence. Often private/non‑bank only.
Pros:
- Can sometimes help where there’s a very short or unusual income history
Cons:
- Significantly higher rates and fees
- Lower LVRs and more risk of future refinancing issues
- Much narrower lender pool
For most inner‑south borrowers, low‑doc is something you use carefully and only with a very clear exit plan.
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