The low-down on 'Low Doc' home loans
If you’re self-employed or a small business owner and don’t have the required documents for a standard home loan application, then you may have heard about low doc and alt doc home loans.
What is a low doc home loan?
A low doc, or low documentation home loan could be taken out using fewer proof-of-income documents than what’s required for a traditional home loan.
However, due to requiring less documentation, low doc home loans didn’t allow lenders to meet their consumer credit obligations and are no longer widely available.
Tip: Alt doc loans serve a similar purpose in allowing borrowers who don’t have all the traditional documentation available. However, they still allow lenders to meet their credit obligations.
Does Pepper Money offer a ‘No Doc’ home loan?
No, we don’t. We do offer alt doc loans which can allow you to apply for a home loan with as little as 6 months ABN and GST registration. Talk to one of our specialists to discuss what could work for you.
Low Doc vs Alt Doc home loans
While alt doc loans still require a full credit assessment and the need for borrowers to undergo serviceability and credit assessments, alt doc loans allow borrowers to prove their income in other ways. Quite often a borrower’s ABN activity and business account statements will be used to validate income, rather than PAYG and tax return statements.
Tip: With Pepper Money, you can apply for an alt doc loan with as little as 6 months ABN and GST registration. Meaning that once you’ve got your business setup, there’s no need to delay your property ambitions.
What documents can I use for Alt Doc home loans?
Our alt doc home loans are grounded in flexibility and allow for your to prove your income or business activity in a few different ways:
How an alt doc home loan may be able to help
Flexible loan options, like alt doc loans, allow self-employed and small business owners to buy their own home, invest in property or even grow their business. Our alt doc loan enables these borrowers to consolidate business debts, pay out tax debts, and pursue their property ambitions.
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Resources to help self-employed borrowers
Not sure if you can get a home loan while running your business? Our resources are here to help you get ahead.
Information provided is factual information only and is not intended to imply any recommendation about any financial product(s) or constitute tax advice. If you require financial or tax advice you should consult a licensed financial or tax adviser.
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