Common questions
FAQs
What documents do I need for a low doc loan?
The minimum is typically a signed income declaration form supported by either 12 months of BAS statements, 6-12 months of business bank statements or an accountant's letter confirming your income. Some lenders accept a combination. Lendology identifies exactly what each lender requires and prepares your documentation accordingly.
Is a low doc loan more expensive?
Generally yes - most low doc loans carry an interest rate premium of 0.3-1.5% above standard full doc rates. The premium varies by lender, LVR and documentation type. BAS-verified applications often attract lower premiums than bank statement only. Lendology compares rates across all low doc lenders and also checks whether a full doc application with a specialist lender could avoid the premium entirely.
What is the maximum LVR for a low doc loan?
Most low doc lenders cap at 80% LVR, though some restrict to 60-70% depending on the income evidence provided. With BAS-supported applications some lenders will consider up to 80%. With bank statement only or accountant's letter, LVR limits are typically lower. Lendology matches you to the best LVR for your documentation.
What is the difference between low doc and alt doc?
The terms are largely interchangeable. Traditional low doc loans relied primarily on a signed income declaration. Alt doc is a newer term reflecting the broader range of accepted documentation - BAS statements, bank statements, accountant letters or combinations. Many lenders now use alt doc branding but the product is functionally the same. Lendology compares all options regardless of what the lender calls them.
Can I refinance a low doc loan later?
Yes - and this is often the strategy. Borrowers take a low doc loan to purchase or restructure, then refinance to a full doc loan once they have lodged tax returns covering the required period. Lendology can plan both stages from the outset.