Not quite, and the name causes plenty of confusion. "Low doc" means fewer of the usual documents, not none. Instead of two years of tax returns and payslips, lenders may accept other proof that your business is earning, such as BAS statements, six to twelve months of bank statements or a letter from your accountant. You still need ID, proof of your deposit, details of your debts and the property itself, and the lender will check what you've told them. Anyone promising a loan with no paperwork at all is worth walking away from. The aim is to match the proof to how your income actually works, not to skip the checking.

Most low doc loans lend up to around 80% of the property's value, so plan on a deposit of about 20%, plus costs like stamp duty. Rates are usually a little higher than on a standard home loan, because the lender is taking on more uncertainty. How much higher depends on the lender, your deposit and how clean your credit history is. It doesn't have to be permanent, either. Many borrowers use a low doc loan to get started, then move to a cheaper standard loan once they've lodged a couple of years of tax returns. We map that path out from the start, so you know when switching is worth it.

It varies by lender, but six to twelve months is the usual range, and some want longer. Many also ask that you're registered for GST, since the BAS statements they rely on come with that. If your business is only a few months old, you're not necessarily shut out. Occasionally, a lender will take into account years spent in the same line of work as an employee before you went out on your own. Others won't budge until you've hit their minimum. That's why it's worth checking before you apply, because each declined application leaves an enquiry on your credit file.

Possibly, but deal with it early. Low doc lenders exist partly for situations where the returns aren't ready, and an accountant's letter or your BAS can fill the gap. A long run of unlodged returns, or a debt owing to the ATO, raises questions though. Some lenders will want an ATO account statement, or proof you're keeping up a payment plan. Don't try to hide it, because it comes out in the checks anyway. Talk to your accountant, get the lodgements moving, and then talk to us. A mortgage broker in Sydney who deals with these lenders regularly can usually tell you in one conversation whether to apply now or tidy things up first.

Yes, in the right circumstances. If your income is hard to document in the usual way, some lenders offer easy refinance options with minimal documentation, using an accountant's letter or BAS instead of a full financial pack. They'll still look at how you've handled your current loan, so a clean repayment history helps. Whether it's worth doing is a separate question. Mortgage refinancing makes sense when the new rate is clearly lower or you want to release equity, once the fees are counted. We run switching costs against savings, and if staying put is the better move, we'll tell you.

Not always. A lot of contractors assume they do and don't. If you've got two years of tax returns showing steady income, or a long-running day-rate contract, a standard loan from the right lender might work at a better rate. Low doc earns its place when the paperwork doesn't reflect your real earnings. That could be a new business, big deductions, a gap in lodgements or income that swings. It applies to loans for self-employed borrowers and to professionals who've gone out on their own. Consultants and IT contractors, for example, can sometimes qualify for professional home loan packages using their contract terms. We test whether a standard loan is possible first, and only move to low doc if it isn't.