If you’re self-employed, a small business owner, or a contractor in Australia, securing finance can feel harder than it should. Traditional lenders often require years of tax returns, payslips, and extensive paperwork, things not all borrowers can provide easily.
This is where low documentation (low doc) loans come in. Whether you’re looking to buy a home, purchase a car, or fund your business, low doc loans can be a practical and flexible solution.
Let’s take a closer look at what low doc loans are, who they’re for, and how they work across different types of lending.
What is a Low Doc Loan?
A low doc loan is a type of finance that allows you to borrow money without having to provide the full suite of traditional income verification documents.
Instead of tax returns and payslips, you might use:
- An accountant’s letter
- Business Activity Statements (BAS)
- Bank statements
Low doc loans are commonly used by:
- Sole traders and self-employed individuals
- Small business owners
- Freelancers and gig workers
- Borrowers with irregular income
1. Low Doc Home Loans
Buying a home is a big step, but for self-employed Australians, the documentation hurdles can be steep. A low doc home loan helps bridge that gap.
How it works:
- You still need to meet credit and deposit requirements.
- Instead of full income verification, you provide alternative evidence like bank statements or BAS.
- Loan amounts and interest rates may vary depending on your risk profile and deposit size.
Best for:
- Self-employed buyers
- Borrowers who have been trading for at least 6 months
Some lenders may also offer low doc refinancing options if you’re looking to restructure your current home loan.
2. Low Doc Car Loans
If you need a vehicle for business or personal use and don’t have standard financial documents ready, a low doc car loan could be the answer.
Key features:
- Fast approvals
- Flexible eligibility for ABN holders
- May require minimal or no upfront deposit
Documents you may need:
- Proof of ABN (active for 6–12 months)
- Income declaration or BAS statements
This type of finance can cover cars, utes, vans, or even light trucks, depending on your business needs.
3. Low Doc Business Loans
Running a business takes capital and not every growing business has the time or resources to prepare complex financial statements. A low doc business loan gives you access to funds when you need them most.
You might use the funds for:
- Buying stock or equipment
- Covering cash flow shortfalls
- Hiring staff or expanding operations
Eligibility often depends on:
- Time in business (usually 6–12 months minimum)
- Business turnover
- Evidence of income from bank statements or BAS
Key Benefits of Low Doc Loans
✔️ Less paperwork
✔️ Faster approval times
✔️ Tailored for self-employed and small business borrowers
✔️ Access to finance even without full tax documentation
While interest rates may be slightly higher than full-doc loans, many borrowers find the trade-off worthwhile for the convenience and flexibility.
Need Help Finding the Right Low Doc Loan?
Low doc loans aren’t one-size-fits-all. Your situation is unique, and the right finance solution will depend on your goals, income, and business history.
If you’re ready to explore your options, get in touch for a no-obligation chat. We will help you make sense of the paperwork (or lack of it) and find a loan that suits your needs.