What "low-doc" actually covers
Low-doc loans let self-employed borrowers verify income through alternative evidence — like BAS statements or an accountant's declaration — instead of two years of tax returns.
They are aimed at businesses too new, or too recently restructured, to show the standard income history most lenders ask for.
The trade-offs to weigh up
Low-doc loans often carry a higher interest rate and a lower maximum LVR than full-doc equivalents, reflecting the extra risk to the lender.
They can still be the right tool for the right situation — particularly for an established business that simply lacks two full years of tax returns yet.