Work for Yourself? - Solutions that Work for You
//Low Doc or Alt Doc Loans
An ideal solution for the self-employed, freelancers, or Individuals with irregular income streams who may struggle to provide standard income verification.
What is a Low Doc Loan?
If you’re self-employed or a small business owner lacking the standard documentation for a traditional home loan, you may have heard of low doc home loans and minimal-paperwork options as a solution.
Before the 2008 Global Financial Crisis (GFC), the term “low doc home loan” described a mortgage requiring less documentation than a standard home loan to prove the applicant’s repayment ability.
Post-GFC, the National Consumer Credit Protection legislation determined that low doc loans failed to meet lending standards, leading to their discontinuation for consumers. But fear not, there is still a solution.
The Alt Doc Loan
Alternative documentation (Alt Doc) home loans still require supporting documentation and go through a full credit assessment, however the documentation asked for caters to a wider variety of financial circumstances and complies with today’s lending standards.
Alt Doc loans are a solution for the self-employed Australian worker who may not tick the usual loan application boxes or might not have the extensive ABN history and paperwork required by some mainstream lenders.
As Alt Doc loans have largely replaced Low Doc loans, these terms are sometimes used interchangeably amongst lenders.
Am I Disadvantaged as an Alt Doc Applicant?
Not necessarily. All qualifications will come down to your circumstances. And we have many lenders on our panel competing in this space, making for flexible and affordable options.
Typical Requirements
To be eligible for an Alt Doc Loan, applicants may be required to submit:
- Evidence of ABN and/or GST registration
- Business Activity Statements (BAS)
- Transaction statements for business accounts
- A letter from their accountant
- Personal tax returns
- Potential other documentation
