Low doc home loan

Frequently asked questions

• What is a low doc home loan?

  A low doc home loan is an otherwise standard home loan that does not require the typical income verification such as recent tax returns or financial statements. While each lender has their own requirements and will accept different types of documents to assess your income, typical examples include a signed accountant’s declaration of your income, Business Activity Statements (BAS) and old tax returns.

• Who are low doc home loans for?

  Low doc home loans are a way for small business owners, freelancers and other ABN holders to meet the requirements of a loan application. They are designed for customers who otherwise wouldn't be able to get a home loan due to their inability to validate their earnings using traditional methods. Low doc home loans often suit self-employed Australians, investors who rely on their investment income and contract workers. Liberty low doc home loans combine our low interest rate with a range of flexible home loan features, with options for start-up or established businesses.

• What is the eligibility for low doc home loans?

  Your eligibility will be improved by good credit history, and low doc mortgage lenders will want to know that you can afford repayments. There are many reasons why you might not have the full suite of documents or financials needed for a full doc loan application. For example, your most recently lodged tax returns may be over a year old and may not reflect your current income level. To find out more, check out our home loan calculators or get in touch with a Liberty Adviser, who can talk with you about your situation to find a lending solution that best suits you.

• What documentation do I need to apply for a loan if I’m self-employed?

  Liberty provides a range of full doc and low doc loans for self-employed customers with varying levels of verification.

  For a self-employed borrower applying for a low doc loan secured by residential property, we can look at alternative documentation such as bank statements, BAS statements, or a completed accountant’s declaration.

• How much of a deposit do I need if I’m self-employed?

  Liberty provides a range of home loans for self-employed borrowers. Depending on your credit history and amount you wish to borrow, the deposit will vary from customer to customer. To find out more, check out one of our home loan calculators or get in touch with a Liberty Adviser, who can talk with you about your situation to find a lending solution that best suits you.

• What if I’m self-employed and have bad credit?

  At Liberty, we look at the whole picture when assessing an application for a loan. Even if you have bad credit, we have home loan solutions that take credit blemishes into account.

  We know that life can have its ups and downs, but your dreams of homeownership shouldn’t have to suffer. Speaking to your broker and being upfront about any credit issues can help put you on the path to home loan success.

• What is a target market determination?

  A target market determination describes who a product may be suitable for, based on likely needs, objectives, and financial situation. It also outlines who can distribute our products, how they can do this, and examples of situations when we may need to review our products and the target market. To view the target market determination for this product, click here.

• Should I tell my broker if I have bad credit?

  If you’re a borrower looking at low doc home loans with a low credit score, you should tell your broker. If you let them know, they can help you find free-thinking low doc mortgage lenders such as Liberty, that will listen to your full story and consider your application even with a low credit score. If you know you have bad credit, talk to a Liberty Adviser or broker today to discuss your options. If you are unsure of your credit history, get in contact with a credit reporting agency like Experian for a free copy of your credit report.

• Where can I get Liberty low doc home loans?

  At Liberty, we offer low doc home loans across Australia. Whether you live in Sydney, Perth, Melbourne, Brisbane, Adelaide, Canberra, Hobart, or in a regional area – there is a Liberty Adviser nearby to help. Low doc home loans are a great option for borrowers who may not have the traditional financial documents required to apply for a home loan. See if this option may be right for you by chatting with a Liberty Adviser.

• What’s the difference between low doc and lo doc home loans?

  On your lending journey you may have come across the terms ‘lo doc’ and ‘low doc’ when referring to home loans. There is actually no difference between these terms, the spelling simply varies based on the lender. Short for low documentation, a lo doc or low doc loan uses different forms of income verification to assess your financial position, rather than relying on traditional income documents such as tax returns.