A low doc (alt doc) home loan lets self-employed borrowers verify income without full tax returns — typically with 6–12 months of BAS, 3–6 months of business bank statements, or a signed accountant's declaration. They are offered mainly by non-bank and specialist lenders, cost roughly 0.5–2% more than full-doc loans, and are usually capped at 80% LVR. The strategy is normally to use alt doc to get in and refinance to full doc once your returns catch up.
This page is for people researching low doc home loans and related options such as alt doc home loans, alternative documentation mortgage, BAS home loan. It explains how this type of finance generally works, who it may suit, the issues that can affect lender approval, common scenarios and the steps involved from initial review through to settlement or funding.
Every application is assessed on its own facts. Property or asset value, income, expenses, existing debts, credit conduct, entity structure and lender policy can all change the outcome. The information below is general and is designed to help you ask better questions before choosing a lender or loan structure.
Alternative-documentation lending is designed mainly for eligible self-employed borrowers who cannot currently provide the standard full set of financial statements or tax returns. It is not “no-doc” lending. Lenders still need credible evidence that supports the declared income and the borrower’s ability to repay.
Depending on the product, supporting evidence may include BAS, business bank statements, accountant declarations, interim financials or other verified business information. Requirements can also change with the loan-to-value ratio and loan purpose.
Some borrowers use an alt-doc loan while current financial statements are being prepared, then review mainstream full-doc options later. That strategy only makes sense when the costs and exit conditions are understood from the beginning; there is never a guarantee that a future refinance will be available.
Broker's Guide
What you need to qualify, what to have ready, where lender policies genuinely differ, and the mistakes we see most often. General information — every application is assessed on its own facts.
Scenario 1
Situation: Last lodged return shows $60k but current BAS annualise to $190k turnover.
How we'd approach it: BAS-based alt doc at 75% LVR; refinance to a mainstream lender when the next return reflects the growth.
Scenario 2
Situation: Income flows through a Pty Ltd; returns not yet lodged for the latest year.
How we'd approach it: Accountant's letter plus 6 months of business statements; lender accepts the company structure.
Our Approach
We start by understanding the full scenario and what you want the finance to achieve. Depending on the transaction, our work can include:
Real Situations
Alt-doc lending is most useful where the business can demonstrate income but standard full financials are not currently available. Common scenarios include:
Step by Step
Initial strategy call and fact-find
Review relevant income, expenses, liabilities, assets and supporting documents
Identify the main lending objective and any policy constraints
Compare suitable lenders and structures
Present the recommended option, expected repayments, fees and key conditions
Prepare and lodge the application after you decide to proceed
Manage lender questions, valuation or asset checks and approval conditions
Complete documents and settlement or funding
Review the lending again when your circumstances or lender pricing change
A loan approval is only one part of the process. Derwent Finance focuses on understanding the objective, comparing lender policy and helping manage the application from initial strategy through to settlement. We assist borrowers across Australia with home loans, refinancing, investment, construction, self-employed, complex, commercial and business finance scenarios.
Where the best outcome is to keep an existing loan or wait until the borrower’s position changes, the recommendation should reflect that rather than moving a loan simply to create a transaction.
FAQs
A loan using alternative self-employed income evidence rather than the full standard financial package.
It is primarily designed for self-employed borrowers and business owners.
Depending on lender: BAS, bank statements, accountant declarations or interim financial statements.
They can be, depending on lender and risk profile.
Potentially, once mainstream documentation requirements are met.
No. Lenders still require evidence of income and ability to repay.
Still have questions? Speak with our team
Ready to understand your options? Book a Strategy Call with Derwent Finance. We can review your current position, what you want to achieve and which lending pathways may be available.
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General information only. Credit assistance is subject to individual circumstances and lender criteria. Interest rates, fees, lender policy, government schemes and eligibility can change without notice. This website does not provide legal, taxation or financial advice. Content last reviewed: August 2026.
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