With a low doc loan, you sign a declaration stating your income. This declaration must be supported by at least one form of alternative evidence. The most common supporting documents are BAS statements (showing turnover), business bank statements (showing regular deposits) or an accountant's letter confirming your income.
The lender uses this alternative evidence to verify that your declared income is reasonable. They are not accepting your word alone - they are cross-referencing your declaration against real financial records.
Low doc rates are typically 0.3-1.5% higher than standard full doc rates, reflecting the additional risk the lender takes on with reduced documentation. The LVR is usually capped at 80%, meaning you need at least a 20% deposit. Some lenders restrict to 60-70% depending on the documentation type and property purpose.
Lendology has access to 60+ lenders including low doc specialists, and we compare the options to find the most competitive rate for your documentation type.
Jason and Steve are Adelaide mortgage brokers who give honest advice at no cost to you. No obligation.
The information on this page is general in nature and does not constitute financial advice. Given Finance Pty Ltd (t/a Lendology) ACN 624 144 501 is authorised under LMG Broker Services Pty Ltd ACL 517192.