Low Doc Loans by Red Rock MortgagesLow Doc Loans

If you're interested in seeing what kind of mortgages are available for self employed individuals, one option to consider is called a low documentation loan - also known as a low doc loan. 

These are a simple type of loan for people who have an income and assets, but are unable to provide the required financial statements or tax returns. The basis of these loans is rooted in the applicant declaring their own income derived from their business, making these products the perfect option for people looking for self employed home loans.

The application process is different for low doc home loans due to the lack of normal documents being provided. If your self-employed you will be asked to supply either a letter from your accountant, a bank statement showing your business income and expenses or a business activity statement (BAS) as evidence of a reliable income.

We specialise in helping self employed people secure cost effective low doc home loans for  personal or investment purposes. We offer a wide range of products, providing solutions for all different walks of life - including low doc home loans worth up to 85 per cent of your property's value with a choice of flexible supporting documents.

Talk to one of our experts today and see how we can assist you.

Low Doc Loan Products

Max LVR Doc Requirements
Min ABN Features/Benefit
Low Doc Prime
 80% Self-Certification + ANY 2 of (Accountants Letter, 6 months BAS, 6 months business bank statements)
 2 yrs
Very low rate flexibility, purchase or refinance. Paid defaults up to $500 accepted.
Low Doc Ultra
 80% Self-Certification + ANY 2 of (Accountants Letter, 6 months BAS, 6 months business bank statements)
 2 yrs
Purchase or refinance, no mortgage insurance, unlimited cash-out to 80%. Clean credit only. Metro areas only.
Low Doc Express  80% Self-Certification + Accountants Letter OR 12 months business bank statements OR 12 months BAS.  1 yr
Purchase or refinance, no mortgage Insurance, some cash-out considered. Loans up to $2.5 million. All credit impairment considered.
Low Doc Easy
Self-Certification + 6mths business bank statements OR 6 months BAS OR Accountants Letter.
 2 yrs
Purchase up to 85% or refinance up to 80%, no mortgage insurance, paid or unpaid credit impaired > 24 months old ignored, minor defaults ignored.
Low Doc Advantage
Self-Certification + 6mths business bank statements OR 6 months BAS OR Accountants Letter.
 6 mths
Purchase up to 85% or refinance up to 80%, no mortgage insurance, unlimited defaults listed > 12 months old. Loans up to $2.5 million.

Minimum residential loan $250,000. Maximum low doc loan advance $2.5million. LVR means loan to value ratio. Self-Certification means declaration of income. Cash-out means equity release. No construction or vacant land loans.  Fees, charges and conditions vary for each product.

Our market leading self employed home loans are highly popular amongst business people seeking a flexible and fuss-free mortgage option. At Red Rock we have been obtaining low doc loan approvals for  self employed business owners for almost 10 years. We have access to a wide selection of low doc home loans that can accommodate a wide range of purposes and preferred supporting document criteria. Below is a table of our most popular residentially secured loan products, each with different features and benefits. 

For commercially secured low doc loan products see our  low doc commercial loans.

Low Doc Loan Options

We have a range of highly competitive lo doc home loans suitable for a variety of purposes including;

  • Loans for property purchases & transfers
  • Refinances with unlimited equity release.
  • Refinance & debt consolidation (inc credit cards, personal loans, car loans, etc)
  • Loans suitable for business expansion or  to replace costly overdrafts.
  • Loans suitable for companies and trust applicants.
  • Choice & flexibility in documents provided, including NO BAS, and NO bank statements options.
  • Loan products with no mortgage insurance.
  • Loans for the payment of tax debt.
  • Flexible self employed low doc loans for commercial purchases and refinances.
  • Specialist low doc loans for applicants with a less than perfect credit history.

Qualifying for a Low Doc Home Loan

There are three requirements that need to be fulfilled before you can consider applying for low doc home loans in Australia:

  1. You need to be self employed with an active Australian Business Number (minimum of six months old, preferably 12 months)
  2. You need to provide either an accountant's letter or a business banking statement or a business activity statement
  3. You need a minimum deposit or equity worth 20 per cent to put towards your home

How will my Low Doc Home Loan Application be Assessed?

Most lenders look for the following key attributes on your low doc home loan application to determine your eligibility for the loan. These key points are outlined below.

Self-Employed History – Your ABN is a key determinate lenders use to ascertain your length of self-employment. The longer your ABN and GST registration history the better, as it demonstrates your longevity and consistency as a self-employed business person.

Credit History - Your credit history is very important, the lender is relying on your past credit performance in ascertaining your eligibility for new credit. Whilst minor telco defaults and judgments can be accepted a clear or ‘clean credit’ history is the most favorable. In general the age of the default is considered, the older the default the better, as it is more favorable to the applicant if a long time period has passed since the default incident has occurred.

Deposit or Equity Contribution - generally a minimum of 20% is required from the applicant(s) for a purchase or refinance. The maximum loan to value ratio (LVR) is generally 80%, although we do have a low doc loan product that will allow up to 85% for a purchase transaction.

Net Asset Position – Your overall net asset position reflects the financial strength of your application. This is your gross asset values minus your current liabilities. The higher this figure the better.

Repayment History  – When you apply for a low doc loan you may be asked to provide a recent statement on any existing mortgages. This is to demonstrate that you are making the obligated payments on these debts and that they are being managed within your credit limits. For refinance transactions it is a standard requirement that you provide 6 months statements for your existing mortgage(s) to be refinanced and generally 3 months statements for any other debts you wish to consolidate (or pay out) from the proceeds of the loan.

Property Location – This is a key determinant when applying for a low doc loan. Lenders rely more heavily on the location of the property in assessing their risk when lending under a low doc arrangement as they are not relying as much of the applicants income evidence. Most metropolitan property will be considered up to maximum loan to value ratios, whilst regional property will often be considered at lower loan to value ratios.
Maximum Loan Exposure – Lenders have prescribed limits to limit their exposure and risk to what is considered a higher risk self employer borrower segment. The most common max exposure per borrower group is $2.5m (i.e a husband and wife’s total borrowings combined) or generally $1 million per loan.

Equity Release – Or ‘cash out’ as it is often referred is where an applicant is seeking to refinance an existing debt and obtain further funds ‘the cashout’ for personal or investment purposes. Some lenders limit of require evidence for the purpose of the cash out when applying under a low doc borrowing arrangement. Most of our products permit unlimited cashout.

Why Choose Red Rock for Low Doc Loans?

Red Rock Mortgages is a specialist in low doc home loan solutions.  Our market-leading, flexible low doc loan solutions are popular amongst many self-employed business people who are after a hassle-free and effective loan solution to help them get onto the property ladder without letting their past defaults hold them back. Low doc loans are one of Red Rock Mortgages' core offerings, making the team here specialists in providing funding for people that qualify. If you think that your situation might warrant a low doc loan, then make sure to get in touch.

Talk to us today about the best low doc loan option for your unique circumstance.

News & Articles on Low Doc Loans

Red Rock Mortgages are experts in low doc lending solutions, and if you're looking for more information about low doc loans that may help you understand your self-employed lending options more comprehensively, check out the articles on our blog

Contact us today for an individual discussion and tailored low doc home loan proposal.