About low doc home loans

A low doc loan or low-documentation loan is for someone, generally the self-employed, who has difficulty coming up with the necessary documentation required to apply for a traditional home loan. This may include those with a poor credit history or who don’t work full time.

Low doc loans traditionally have higher rates of interest than traditional loans, as they represent greater risk to the lender. As a result borrowers applying for a low doc loan may be required to secure the loan with assets such as vehicles, homes you own or other investments.

These types of loans generally require a larger deposit than most traditional loans do, with loan to value ratios (LVR) typically ranging from 60 to 80 percent. By comparison, at the time of writing most traditional home loans had an LVR of around 95 percent, meaning just 5 percent deposit is required.

How to apply for a low doc loan

If you think a low doc loan would be suitable for you, check out our low doc loans options and start comparing now.

Using the site you can compare low doc loan options, by rate, fees and repayments. Or click on a specific product you may be interested in and you’ll be able to find out even more about the details and features of the product.

Tips to help you compare home loans

• Do your homework – use a comparison site to make the job simpler
• Compare at least three products when looking for a home loan
• Crunch the numbers: compare more than simply the rate – fees and features shouldn’t be overlooked
• Consider using the “comparison rate” rather than “advertised rate” for a better indication of the real costs of taking out the loan – the comparison rate factors in costs such as some fees
• Keep an eye on the market and compare again down the track to make sure it is still the best option for you.
• Use a home loan repayment calculator to estimate your monthly repayments and total interest payable for each home loan you are considering.

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