What is a Low Doc Loan?
Low Documentation (Low Doc)
If you are self-employed and you do not possessed 2 years of tax return and financials to assess your income for a home loan, there are alternative ways to assess them such as using βLow Docβ. Money Smart defines a Low Doc loan as βa loan that requires less financial documentation to prove income, assets and liabilities than a standard loanβ.
Who is it for?
If you are self-employed, have your own ABN, and been running your own business for a minimum of 12 months, you may be eligible in using Low Doc to assess your income.
So rather than providing 2 years of tax returns, business and personal financial documents as evidence of income, you can provide the following documents.
![](https://i0.wp.com/www.aafinancesolutions.com.au/wp-content/uploads/2022/09/gst.jpg?resize=1024%2C576&ssl=1)
If your business is GST registered, you will need to submit your latest 2 BAS (business activity statement). A BAS statement reports how much you have made and how much GST you have paid for the period of your business activity.
![](https://i0.wp.com/www.aafinancesolutions.com.au/wp-content/uploads/2022/09/accountant.jpg?resize=1024%2C576&ssl=1)
The second way to obtain income would be to get your accountant to confirm how much you have earned for the year.
![](https://i0.wp.com/www.aafinancesolutions.com.au/wp-content/uploads/2022/09/businessstatement.jpg?resize=1024%2C576&ssl=1)
The last method would be to submit a 6-month business statement that shows your income and expenses. This statement will help to validate your businessβs cashflow.
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