Low doc home loans

Average customer rating: 4.3/5
Written by James Hurwood
Reviewed by Stephen Zeller
Updated 27 June 2024

Why take out a low doc home loan?

For borrowers with a very specific set of circumstances and requirements, a low doc home loan can be a valuable solution offering:

  • Access to finance for borrowers who may otherwise have a hard time being approved for a home loan.
  • A pathway to a more conventional home loan for small business owners, contractors and self-employed individuals.

Choosing a low doc home loan

Low doc home loans typically aren’t particularly ‘competitive’ versus more conventional home loan types, but you can still find a home loan that offers you value. With that in mind, anyone considering a low doc home loan should remember the following when comparing their options:

  • Interest rates for low doc home loans will be higher on average compared against more conventional home loan types, but don’t let that stop you from finding a loan with a rate that’s competitive relative to other low doc home loan rates – be sure to check the comparison rate!
  • The same goes for fees – try and find a low doc mortgage product with fees lower than the competition if possible.
  • Some low doc home loans may stipulate a relatively high minimum deposit requirement, sometimes as high as 30% of the total loan.

Expert tips on low doc home loans

Our General Manager of Money, Stephen Zeller, wants to see borrowers choosing home loans which are appropriate for their needs. Subsequently, he has some tips for any borrowers considering a low doc home loan:

Stephen Zeller
General Manager – Money

Gather your essential documents

While low doc home loans require far less paperwork than a standard home loan, the lender will still require some information from you for identification and financial purposes.

Understand the interest rates and fees

Owing to their riskier nature, low doc home loans often have higher rates and fees than more traditional home loans.

Check your credit score

Having a good credit score can improve your chances of approval and may even help you secure better terms for your low doc home loan.

Low doc home loans explained

What is a low doc home loan?

What features can a low doc home loan have?

What is an ‘alt doc’ home loan?

Applying for a low doc home loan

What do I need to be approved for a low doc home loan?

How big a deposit do I need for a low doc home loan?

Can I get a low doc loan for an investment property?

Important to know

What are the pros and cons of low doc home loans?

Can I refinance a low doc home loan?

Meet our home loans expert, Stephen Zeller

Stephen Zeller
General Manager – Money

Stephen has more than 30 years of experience in the financial services industry and holds a Certificate IV in Finance and Mortgage Broking. He’s also a member of both the Australian and New Zealand Institute of Insurance and Finance (ANZIIF) and the Mortgage and Finance Association of Australia (MFAA).

Stephen leads our team of Home Loan Specialists, and reviews and contributes to Compare the Market’s banking-relating content to ensure it’s as helpful and empowering as possible for our readers.