Self-employed and looking to build a property portfolio? Low doc investment property loans let you use BAS statements or bank statements to prove your income, giving you a path into investment lending without the standard two years of tax returns.
By Jason Given - August 2026 - 6 min read
Yes. Most alt doc and low doc lenders accept applications for investment properties as well as owner-occupied. The same alternative income verification methods apply - BAS statements, accountant declarations, and business bank statements can all be used to demonstrate your earning capacity.
However, investment property low doc loans typically have stricter LVR limits and slightly higher rates than owner-occupied low doc loans. Lenders view the combination of alternative documentation and investment purpose as carrying additional risk, and the loan terms reflect that.
The maximum loan-to-value ratio varies depending on the loan purpose and documentation type. Owner-occupied low doc loans can go up to 80% LVR with some lenders. Investment low doc loans are typically capped at 70-75%, and some lenders limit them to 60%.
This means you generally need a larger deposit or more equity for a low doc investment purchase than you would for an owner-occupied low doc loan. If you are buying a $600,000 investment property at 70% LVR, you need $180,000 in deposit or equity - compared to $120,000 at 80% LVR.
Some lenders apply the same LVR for both owner-occupied and investment low doc, so broker selection matters. Lendology knows which lenders offer the most competitive LVR for investment applications.
Investment loans already carry a small premium over owner-occupied rates - typically 0.2-0.5% higher. Add the low doc premium of 0.3-1.5% and you could be paying 0.5-2% above standard owner-occupied rates.
On a $500,000 investment loan, this can mean $5,000-$10,000 per year in additional interest compared to a standard owner-occupied loan. That is a significant cost, and it makes lender selection critical. Even a 0.2% difference across lenders adds up to $1,000 per year on a $500,000 loan.
Lendology compares across all lenders to minimise the combined investment and low doc premium, ensuring you are not paying more than necessary.
Some low doc lenders allow you to include estimated rental income in your serviceability calculation, which can increase your borrowing capacity. Others only assess your self-employed income and do not factor in rent at all.
If the property is already tenanted with a lease in place, this strengthens the application. Lenders that accept rental income typically discount it to around 80% of the gross rent when calculating serviceability, accounting for vacancy and management costs.
Lendology identifies which lenders treat rental income most favourably in their low doc assessments, giving you the best chance of approval at the borrowing amount you need.
Interest on investment loans is generally tax-deductible. The low doc premium is also deductible as it is part of your borrowing costs. This means the after-tax cost of the rate premium is lower than the headline figure suggests.
Depreciation on the investment property can further offset your taxable income, particularly on newer properties or those with recent renovations. Combined with interest deductions, the cash flow position of a low doc investment loan may be more favourable than the pre-tax numbers indicate.
However, always speak with your accountant about the tax implications specific to your situation. Tax laws change, and your individual circumstances determine what you can and cannot claim.
If you already own your home and are buying an investment property, the loan structure matters. Cross-collateralisation - using your home as additional security for the investment loan - can sometimes improve the LVR position on the investment property.
Standalone security may limit your LVR but keeps your properties independent. This means the lender cannot force a sale of your home if there is an issue with the investment property, and it gives you more flexibility to refinance or sell one property without affecting the other.
Lendology advises on the best structure based on your goals, existing equity position, and the specific lender policies that apply to your low doc application.
The same strategy that applies to owner-occupied low doc loans works for investment - once you have full documentation (typically after completing one or two years of tax returns), you can refinance the investment loan to full doc rates.
The interest saving on investment loans can be significant over time. If you are paying a combined premium of 1.5% on a $500,000 loan, refinancing to a standard investment rate saves you $7,500 per year. Over the remaining life of the loan, that adds up quickly.
Lendology plans this transition with you from the outset, so you know exactly what documentation you need to prepare and when the refinance makes sense.
Some lenders allow estimated or actual rental income to be included in serviceability. This is assessed at a discounted rate (typically 80% of gross rent). Whether rental income is accepted depends on the specific lender's low doc policy.
Generally yes. Most low doc investment loans cap at 70-75% LVR, meaning you need a 25-30% deposit or equivalent equity. Some lenders go to 80% for BAS-verified investment applications.
Yes, the full interest amount including any low doc premium is generally tax-deductible on investment loans. The premium is a borrowing cost. Speak with your accountant for specific advice.