Are Low Doc Loans Still Available?

 Are Low Doc Loans Still Available?

Are you self-employed or a freelancer? Do you want to apply for a loan to buy a house but don’t have proof of salary documents like payslips or group certificates? Well, why don’t you try low doc home loans?

Low Doc doesn’t mean providing less evidence of your income but providing different documents than the regular ones. Low Doc stands for Low Documentation. It is a loan that can be taken using various income verification documentation instead of the traditional full doc loan that requires salary documents like payslips.

Eligibility Conditions

Every lender has requirements and conditions before giving out a low doc loan. Though most of these conditions don’t vary with lenders, some lenders may have their additional requirements. Following are some common conditions that you can expect from lenders:

  • You need to give some proof that you have been working in the same field or industry for one year or more.
  • Up to 6 months’ worth of personal and business bank statements.
  • An accountant’s declaration or BAS statements – up to 12 months’ worth.
  • A document confirming that your income has been registered for GTS for a minimum of 12 months.

Low Doc Loans After The Pandemic

Low Doc loans were quite common before the pandemic. But, what about now? Are they still as popular as before? Do lenders still provide low-doc loans? Well, yes. Low Doc loans are still available. However, due to the pandemic, lenders have adjusted their interest rates, credit policies, and general credit appetite.

Following Are Some Changes That Were Made In The Lending Policies Of Low Doc Loans:

  • Reduced Maximum Loan Size
  • A Limit On The Maximum Loan-To-Value Ratio
  • Increased Loan Servicing Ratio
  • 30 Days BBS, 72 Hours Before Settlement
  • Shorter Timeframe Of Business ABN


Low-doc loans are still available and quite popular too. You can easily qualify for a low-doc loan if you have a good credit score. But, it is also true that there is no free lunch in this world. Thus, if you cannot prove that you can repay the loan, the lenders are taking a high risk by lending money to you. Due to this, these loans’ interest is higher than full-doc loans.

You should think carefully, analyze all possibilities, and ensure your financial condition before making any decision. Make sure you contact a trustworthy lender and discuss the terms and conditions beforehand. So, if you are a freelancer, self-employed, or contract worker and want to get your own house, give low doc home loans a try!

Danny white