Traditionally, a low doc mortgage is designed for borrowers who do not have enough personal documentation to qualify for a standard home loan.

If you are self-employed, employed as a seasonal worker, or receive irregular income, you may not have sufficient documentation to prove your income.  You may simply not want to disclose your full income.  In any of these cases, you can apply for a low doc or no doc home loan.  These loans normally come with higher interest rates but you can renegotiate a lower rate further down the track should you be able to show the traditional required forms of documentation.

Low-doc home loans still require some documentation but not as much as a standard home loan.  You may have some bank statements, tax returns or other financial accounts that you can use to back up your application. Unfortunately, because these loans are seen as a bigger risk for the lender, you pay a higher interest rate on the loan.  Low doc home loans are sometimes referred to as a non-conforming loan, which come with higher rates.
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And, major lenders will usually insist on a Loan to Value Ratio (LVR) of at least 80 per cent, however some specialist lenders may accept an LVR of up to 95 per cent.  Most lenders will require you to take out Lenders Mortgage Insurance (LMI) for a low-doc loan with an LVR greater than 60 per cent.  So, a low doc home loan can end up costing a lot more than a regular loan.

However, a good mortgage broker will be able to assess your needs and find you a low doc mortgage that doesn't cost you an arm and a leg.  You can choose whether to take a variable rate home loan or a fixed rate loan, and many also come with added features, just like a standard home loan.  Ask your local mortgage broker to explain a range of home loan options, so you can be sure that you are choosing the right one for you.

We are independent and are not influenced by commissions paid be any lender.  We search, compare and select home loans based upon their availability and suitability to you.  Everyone's needs and situation is different so we accept that you will need a unique approach.  Finding you the best home loan possible is our job, and we take pride in succeeding.  Your local mortgage broker will be there every step of the way, from beginning to end.  From finding a great low doc home loan, putting together a winning application, getting home loan approval, through to settlement.


Talk to your Local Mortgage Broker and find out the facts before making your decision.  Our mortgage advisors are all experienced and understand the mortgage market so we are the best resource for you when it comes to selecting a home loan.  We can help you choose the right home loan. Call us on 1300 787 665 or submit your details using our on line form.