Confused about low-doc loans? Your questions answered!

It is often said that less is more. Today in Australia, small businesses account for over 35% of the GDP (Gross Domestic Product) and employ over 44% of the workforce. But when it comes to doing something simple like getting a mortgage, if you don’t fit that tick-box profile it’s not quite as simple. That’s where low-doc loans can help. Here’s how.

What are they?

Low-doc loans are a way of borrowing money for people that don’t have access to the traditional levels of documentation. Once a niche market, these types of loans are now firmly in the mainstream and widely available.

Who are they for?

These loans are well suited to small business owners and the self-employed. Lenders look at the whole financial picture – rather than just your ability to tick off a document check list. Up until this point, fluctuating incomes or financial irregularities made home ownership or any type of borrowing a real challenge for the self-employed.

How can you use them?

Any way you like! Low doc loans can be used for business or personal means ranging from mortgages and cars, to debt consolidation and equity release.

Is there a catch?

Banks face a greater amount of risk the less documentation they are able to certify, so it makes sense that low-doc loans have slightly higher interest rates and deposit requirements. Treat this loan as you would any other and be sure to check for terms and conditions around features and benefits, as well as early repayment and exit fees.

What will I need?

The requirements differ by lender with some only requiring 2 forms of verification – usually a signed borrower’s income declaration and BAS statements for the past year. Other lenders may require slightly more such as your ABN and a clean credit history.

Here at MoneyQuest, we can help you find the right loan for your needs.



This article is written to provide a summary and general overview of the subject matter covered for your information only. Every effort has been made to ensure the information in the article is current, accurate and reliable. This article has been prepared without taking into account your objectives, personal circumstances, financial situation or needs. You should consider whether it is appropriate for your circumstances. You should seek your own independent legal, financial and taxation advice before acting or relying on any of the content contained in the articles and review any relevant Product Disclosure Statement (PDS), Terms and Conditions (T&C) or Financial Services Guide (FSG).

Please consult your financial advisor, solicitor or accountant before acting on information contained in this publication.