
What is a low doc/alt doc loan?
Low Documentation (Low Doc) Loans and Alternative Documentation (Alt Doc) Loans are designed for borrowers who may not meet the strict documentation requirements of traditional loans. These loans are ideal for self-employed individuals, freelancers, or those with irregular income streams who may find it challenging to provide standard proof of income.
Understanding Low Doc Loans
A common misconception is that Low Doc Loans require less evidence of income compared to traditional loans. Instead, they allow for different types of income evidence. These loans are perfect for those who:
- Have been in business for less than two years
- Have seasonal or irregular income
- Earn income from various sources, such as part-time employment, investments, rental properties, or running a business
- Recently switched industries or moved between full-time employment and self-employment
Eligibility Criteria
To qualify for a Low Doc Loan, self-employed borrowers may need to provide:
- Proof of ABN and/or GST registration
- Business Activity Statements (BAS)
- Business account transaction statements
- Accountant’s letter
- Personal tax returns