Low Doc & Alt Doc Loans: Flexible Lending for Self-Employed and Non-Traditional Borrowers
Christian Stevens, Mortgage Broker
Published January 31, 2025, 2:10 p.m ET
If you’re self-employed, newly in business, or your income doesn’t fit neatly into a bank’s standard boxes — low doc and alt doc loans can be a lifeline. These loans are designed to support capable, creditworthy borrowers who may not have the standard paperwork but still have the financial strength to repay a home loan.
Here’s how these flexible lending options work, who they’re best suited for, and how to approach them with clarity and confidence.
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🔑 Key Facts
- Low doc and alt doc loans offer flexible options for borrowers without traditional income documentation.
- Common among self-employed, small business owners, freelancers, and contractors.
- Lenders accept BAS, accountant letters, bank statements, or declared income as alternatives to full tax returns.
- Flint works with lenders who specialise in low doc lending — and helps structure your application for success.
What Are Low Doc and Alt Doc Loans?
Low Doc (Low Documentation) Loans are home loans for borrowers who can’t provide traditional income documentation, such as two years of full tax returns or financial statements.
Alt Doc (Alternative Documentation) Loans are a step up in flexibility, allowing borrowers to prove their income using alternative forms of verification such as:
- Business Activity Statements (BAS)
- Accountant’s declarations
- Business bank account statements
- Rental income summaries or investment earnings
These loans are most commonly used by:
- Sole traders and small business owners
- Independent contractors and gig economy workers
- Freelancers and creatives with seasonal income
- Start-up founders or early-stage entrepreneurs
How Lenders Assess Low Doc & Alt Doc Applications
Instead of relying on tax returns, lenders will review:
- Consistency of income over recent months
- How long the business has been operating (usually at least 12 months)
- The borrower’s overall asset position and savings buffer
- Clean credit conduct and current debt levels
Tips to improve your chances:
- Show stable or growing cash flow over 6–12 months
- Aim for a deposit of 20% or more
- Separate personal and business financial records
- Work with a broker who understands alternative lending policies
Common Use Cases for Low Doc and Alt Doc Loans
These loans provide flexibility in scenarios such as:
- Buying your own home while running your business
- Refinancing out of high-interest private loans
- Accessing equity to grow your business or invest in property
- Purchasing through a trust, company, or other structure
Although rates may be higher than standard loans, the flexibility offered can make it the right move for borrowers with complex financial profiles.
Things to Watch Out For
- Lender policies vary widely — not all accept the same documents
- Loan-to-Value Ratios (LVRs) may be capped at 60–80%
- Interest rates and fees can be higher due to increased risk
- Some features (like redraw or offset) may be limited
Smart strategy: Treat low doc loans as a transitional step. Once your income and documentation are more established, you may be able to refinance to a more competitive loan.
📞 Need a Home Loan That Matches Your Income Story?
- At Flint, we specialise in helping entrepreneurs, freelancers and self-employed Australians access the finance they deserve:
- Access to alt doc and low doc lenders who assess you fairly
- Strategies to structure your application for better approval odds
- Expert advice to help you refinance when the time is right
Let’s turn your real-world income into a home loan that works for you. Talk to Flint today. Talk to Flint today.
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