WHAT IS A LOW-DOC LOAN?

The ‘doc’ in low-doc loan, stands for ‘documentation’. A low-doc loan does not require the same amount of paperwork that is traditionally needed to take out a home loan.

In place of an up-to-date tax return or pay slip, low-doc applicants can get letters from their accountant, or make what is called a ‘statement of earnings’ – among other things. Because of their relatively ‘high-risk’ status, low-doc loans can have tougher serviceability requirements and higher interest rates.

WHY DO I WANT LOW-DOC LOAN?

A low-doc loan is for when you don’t quite have all of your paperwork together.

WHO WOULD BENEFIT FROM A LOW-DOC LOAN?

A low-doc loan is best suited to self-employed, small businesses and sole traders who don’t have the traditional paperwork required to take out a loan.