Alternative evidence
What can you use instead of tax returns?
Depending on the lender: business activity statements, business bank statements, an accountant's declaration, or a combination. Each lender has its own accepted set.
LOW-DOC LENDING
When your income is good and your paperwork is not standard
Low-doc lending is for borrowers whose income is real but does not arrive as two years of tidy payslips.
IN SHORT
Low-doc means alternative evidence of income, not no evidence
The name is misleading. A low-doc or alt-doc loan still requires you to demonstrate that you can afford the repayments — it simply accepts a different set of documents than the standard two years of tax returns and notices of assessment.
It exists because a large number of people have perfectly sound income that a standard assessment handles badly: business owners who have recently restructured, contractors, sole traders, and anyone whose most recent year looks nothing like the one before it.
Lenders offering these products generally price them above standard loans and often require a larger deposit, because they are accepting a less conventional view of income.
WHY IT HELPS
What it solves
Recent trading counts
What if last year was unusual?
Standard assessment often averages two years, which penalises a business that has grown. Alt-doc assessment can give weight to more recent trading.
A path back to standard
Are you stuck with it?
Low-doc is frequently a bridge. Once you have the returns to support a full assessment, refinancing to standard pricing is often the sensible next move.
HOW IT WORKS
What lenders will want to see
Requirements vary more between lenders in this space than almost anywhere else, which is exactly why comparing across a panel matters here. One lender's decline is another's routine approval.
- An ABN registered and active for a minimum period, commonly one to two years
- GST registration, where the business turnover requires it
- One or more of: BAS, business bank statements, or an accountant's declaration
- A larger deposit than a standard loan typically requires
- A clean credit history, which carries more weight when income evidence is lighter
IS IT RIGHT FOR YOU
Whether low-doc is the right route
This tends to suit you if
- You are genuinely self-employed — with an established ABN and consistent trading.
- Your business banking is clean — statements that clearly show turnover make this far easier.
- You have a reasonable deposit — which offsets the lender's reduced income verification.
- Your accountant will support it — a declaration carries real weight with several lenders.
Worth weighing up
- Pricing sits above standard loans — you are paying for a different assessment approach.
- Deposits are usually larger — and maximum LVRs lower than standard lending.
- LMI can be harder or dearer — insurers apply their own criteria on top of the lender's.
- It is not a workaround — if the income genuinely does not support the loan, this will not fix that.
How working with us actually goes
Step 1
We start with a conversation, not an application
Step 2
We work out what you can borrow and what it costs
Step 3
We prepare the application and deal with the lender
Step 4
We stay across the loan long after settlement
COMMON QUESTIONS
Questions we get asked about this
Do I really not need tax returns?
Not necessarily for a low-doc product, but you will need something substantial in their place — typically BAS, business bank statements, or a signed accountant's declaration confirming your income.
The requirement is different, not absent. Lenders still have to be satisfied the loan is not unsuitable for you.
How long do I need to have been self-employed?
Most lenders want an ABN active for at least one to two years, and many want GST registration for a similar period.
Some will consider a shorter trading history where there is relevant prior experience in the same field, but the options narrow considerably.
Is a low-doc loan much more expensive?
It is generally priced above a comparable full-doc loan, and the gap varies with LVR and the strength of the application.
The useful comparison is against the alternative: for many borrowers the choice is a low-doc loan now or waiting a year or two for the returns to accumulate.
Can I refinance to a normal loan later?
Frequently, yes, and it is worth planning for. Once you have two years of returns supporting the income, a standard assessment usually becomes available and pricing improves.
We flag that as a review point rather than leaving you on low-doc pricing indefinitely.
Can I use a low-doc loan for an investment property?
Yes, many lenders offer alt-doc products for investment purposes as well as owner occupied.
Expect more conservative loan-to-value ratios, and the rental income assessment applies on top of the alternative income verification.
RELATED
Where people usually go next
GET IN TOUCH
Self-employed and want to know what is achievable?
Would rather talk it through?
(02) 9659 1694Important information
The information on this page is general in nature. It has been prepared without taking your objectives, financial situation or needs into account, so it is not personal advice and you should consider whether it is appropriate for you before acting on it.
Any rates, figures or examples shown are indicative only. Lending is subject to approval, and lender eligibility criteria, terms, conditions, fees and charges apply. Talk to us about what your own circumstances allow.