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Local Knowledge Finance
CPA and Registered Tax Agent · Credit Representative

What is a low doc loan?

A low doc loan is a home or investment loan for self-employed borrowers who can’t yet show income with recent tax returns. Instead, lenders assess other evidence, such as BAS statements, business bank statements or an accountant’s declaration. Pricing and lender choice are usually narrower than for a standard full doc loan.

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Who it suits

  • Sole traders, contractors and company directors whose latest tax returns are not yet lodged.
  • Business owners whose income has grown recently, so older returns understate what they earn now.
  • Borrowers with an established ABN who keep their BAS and business accounts up to date.
  • People who would qualify on full doc terms soon but need to act on a purchase or refinance now.

Documents lenders ask for

  • ABN and GST registration details, and how long the business has traded.
  • Recent BAS statements lodged with the ATO.
  • Business bank statements showing regular turnover.
  • An accountant’s letter or declaration confirming income, where the lender accepts one.
  • Identification, details of assets and debts, and personal bank statements.

Trade-offs and risks

  • Interest rates and fees are often higher than for a comparable full doc loan.
  • Fewer lenders offer low doc loans, and many cap how much of the property value they will lend.
  • Lenders may charge for lenders mortgage insurance or require a larger deposit.
  • You still have to show the loan is affordable. A low doc loan is not a way around responsible lending checks.
  • Once your tax returns are lodged, it may be worth reviewing whether a full doc loan now suits you better.

How we're paid

  • Lenders usually pay us a commission when a loan settles, and some also pay an ongoing trail commission while the loan stays open.
  • We tell you what we expect to receive, and from whom, in our credit quote and credit proposal before you apply.
  • If a fee from you applies to your situation, it is set out in writing before you go ahead. There is no obligation to proceed.
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Related guides

Common questions

Low doc loans FAQs

No. Australian lenders still need evidence that you can afford the loan. A low doc loan simply accepts other evidence, such as BAS statements, business bank statements or an accountant’s declaration, instead of recent tax returns.
It depends on the lender. Most want your ABN to have been registered and trading for a minimum period, and some want GST registration too. We can check which lenders’ policies fit how long you have been trading.
Usually, yes. Because the lender relies on less documentation, interest rates and fees tend to be higher than on comparable full doc loans. The difference varies by lender and by your situation, so compare the total cost in writing.
Lenders that accept one usually want your accountant to confirm your business income and that your tax affairs are up to date. Each lender has its own form. Because James is a CPA and Registered Tax Agent, we can explain what lenders look for.

General information only. It does not take your objectives, financial situation or needs into account and is not financial product, tax or legal advice. Lending criteria, fees and charges apply. Super, Centrelink and aged-care fee advice is referred to a licensed financial adviser. Ding Financial Pty Ltd t/a Local Knowledge Finance is a Corporate Authorised Credit Representative 517980 of Global Mutual Funds Pty Ltd (ACL 222640).

Talk to a broker about low doc options

Tell us how your business is set up and what documents you have. We will explain which lender policies may fit.

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