Low Doc Home Loans: Lenders and Documents

Low doc home loans verify a self-employed client’s income with business activity statements (BAS), business bank statements or an accountant’s letter instead of tax returns and financial statements. Each lender sets its own minimum Australian Business Number (ABN) and GST history, deposit and credit rules for that evidence.

The lender still verifies the income. Your client’s signed income declaration starts the file, and the lender pairs it with at least one piece of evidence, such as lodged BAS or bank statements.

Non-bank lenders such as Pepper Money, Liberty, La Trobe Financial and Bluestone offer low doc loans, which some of them call alt doc (alternative documentation) loans. Westpac’s self-employed home loan page says Westpac doesn’t offer low doc home loans. RAMS closed to new home loan applications in August 2024.

When Low Doc Fits

Low doc fits when your client’s business income is current and traceable but their lodged tax returns and financials don’t show it yet. The evidence gap usually takes one of these forms.

• The latest tax return isn’t lodged, so a full-doc lender can’t read the most recent year.
• The business is younger than the trading history a full-doc lender needs.
• Recent BAS and bank statements show trading that the last lodged return doesn’t reflect.

Full doc stays the stronger route when lodged returns and financials already support the loan amount. AFG Home Loans’ guide to loan types says low doc loans often carry higher interest rates, need a larger deposit or both. The self-employed home loan guide explains how lenders calculate income from those returns and financials.

Low doc applies to residential purchases and refinances for owner-occupiers and investors. La Trobe Financial’s Self-Employed Lite Doc loan and AFG Home Loans Retro Lite both accept investment purposes. A loan secured by a shop, office or factory needs commercial lending, which the low doc commercial property loan guide covers.

Compare Lender Requirements

Low doc lenders differ most on minimum ABN and GST history, the evidence they accept and the maximum loan-to-value ratio (LVR). Compare all three against the same client facts before you recommend a lender.

Declaration and Verification

A declaration is your client’s own signed statement of their income or financial position. Verification is evidence that supports it, such as lodged BAS, business bank statements or an accountant’s letter. As at October 2026, Pepper Money asks for a declaration of financial position plus one evidence item, and La Trobe Financial asks for a borrower repayment declaration plus one.

The law requires that second step. The Australian Securities and Investments Commission’s (ASIC) Regulatory Guide 209 explains the responsible lending obligation to take reasonable steps to verify a consumer’s financial situation. In a 2014 review of 12 low doc lenders, ASIC found them verifying self-employed income with business bank statements or accountants’ letters.

Mortgage House’s low doc paths show the difference. As at October 2026, its Path B pairs the client’s declaration with an accountant’s certification that the client can afford the repayments. Its Path C replaces the accountant with bank statements and BAS, which the lender can match to the business’s own records.

One Client Across Six Lenders

This fictional scenario holds one client’s facts constant, so the lender rules are the only thing that changes. Jordan is a sole trader electrician buying an established house in a capital city.

• Jordan has held an ABN and GST registration for 27 months.
• Jordan’s 2023-24 tax return covers a part year, and the 2024-25 return isn’t lodged yet.
• Six quarterly BAS are lodged, the credit file is clear and there’s no tax debt.
• The house costs $750,000, and Jordan has a $150,000 deposit from savings. The $600,000 loan is at an 80% LVR before costs.

Lender and source date	Business history rule	Evidence accepted	Jordan’s file
Pepper Money Alt Doc, as at October 2026	ABN and GST registered for at least 6 months	Declaration of financial position, plus 6 months of business bank statements, 6 months of lodged BAS or Pepper’s accountant’s letter	Meets the history rule. Pepper lends up to $5 million at 80% LVR.
Liberty low doc, effective 1 October 2026	No minimum stated on its low doc page	Bank statements, BAS or a completed accountant’s declaration	Inside Liberty’s 85% maximum LVR
La Trobe Financial Self-Employed Lite Doc, as at October 2026	No minimum stated on its product page	Accountant’s letter, trading statements or BAS. Its broker term sheet asks for 12 months of BAS or trading statements.	At La Trobe’s 80% maximum for loans up to $5 million, with no lenders mortgage insurance (LMI)
Bluestone Alt Doc, quick policy guide updated 10 November 2025	Prime: ABN 24 months and GST 12 months. Near Prime: ABN 12 months. Specialist: ABN 6 months.	6 months of BAS with Bluestone’s BAS calculator in PDF, 6 months of business bank statements or an accountant’s letter	Meets the Prime history rule
AFG Home Loans Retro Lite, target market determination (TMD) dated 20 October 2025	Self-employed borrowers who can’t provide financials or tax returns and have an accountant on the Tax Practitioners Board register	Set by AFG Securities’ credit guidelines.	Inside the $100,000 to $3 million loan range. The TMD lists impaired credit and tax debt as unsuitable, so Jordan’s clear file fits.
Mortgage House Low Doc, as at October 2026	Self-employed for at least 6 months	Declaration plus bank statements and BAS, or declaration plus an accountant’s letter or certification	Meets the history rule

Jordan’s 27 months of ABN and GST history clears every published history rule here, so the evidence decides the shortlist. Six lodged quarters satisfy the 6-month BAS options at Pepper Money and Bluestone, and the last four quarters meet La Trobe Financial’s 12-month BAS request.

Bulma’s Policy Advisor can put the same alt doc question to 52+ lenders at once. Each answer quotes the lender’s documentation wording, which you can keep with your file notes.

AFG Home Loans and AFG’s Broker Network

AFG Home Loans has two low doc routes, and a different lender sets the evidence rules for each. AFG Securities manages Retro Lite, so its 20 October 2025 TMD and AFG Securities’ credit guidelines decide eligibility. As at October 2026, Pepper Money provides the AFG Home Loans Options product, which suits borrowers who want to use alternative income documentation, so Pepper’s credit rules apply.

AFG’s separate role as an aggregator for its member brokers sits apart from both products. AFG Home Loans products are sold only through AFG brokers, but the lodgement channel doesn’t change what AFG Securities or Pepper Money accepts as income evidence.

Best-Fit Routes by Evidence Gap

Match the client’s evidence gap to the lenders whose published rules cover it.

• If the latest return isn’t lodged but the ABN is over two years old and the credit file is clear, the widest choice is open. Compare Bluestone’s Prime Alt Doc, La Trobe Financial’s Lite Doc, Pepper Money’s Alt Doc and AFG Home Loans Retro Lite.
• If the ABN is between 6 and 12 months old, look at Pepper Money, whose minimum is 6 months of ABN and GST registration. Bluestone’s Specialist tiers and Mortgage House also start at 6 months.
• If the deposit is under 20%, Pepper Money’s Alt Doc lends up to 95% LVR on loans up to $3 million. Liberty’s low doc maximum is 85%.
• If the credit file is impaired, AFG Home Loans Retro Lite Specialist targets impaired credit, deposits without genuine savings and debt consolidation. Its 1 June 2026 TMD covers loans of $100,000 to $2 million. The bad credit home loan guide explains how lenders grade credit events.
• If the client isn’t registered for GST, start with Liberty, La Trobe Financial and Mortgage House, whose public pages state no GST registration rule. Pepper Money and Bluestone publish GST registration minimums, so that client falls outside their published Alt Doc rules.

No Doc Enquiries

A no doc home loan enquiry still ends with verified income. None of the lenders compared here approves a residential loan without income evidence, and the verification obligation in Regulatory Guide 209 applies to every credit licensee.

ASIC’s 2014 review noted that before responsible lending laws began in 2010, some lenders didn’t verify a borrower’s financial situation for low doc loans. When a client asks for a no doc loan, confirm which evidence your selected lender accepts now and build the application around it.

Prepare Supporting Documents

Prepare the evidence your chosen lender names, then check that the BAS, bank statements and any accountant’s letter support the same income. The table maps each document to what the lender reads from it.

Evidence	What the lender reads	Check before you submit
Lodged BAS	Quarterly sales and GST	Lodged with the Australian Taxation Office (ATO), and enough quarters for the lender’s period: 6 months at Pepper Money and Bluestone, 12 months at La Trobe Financial
Business bank statements	Deposits, business costs and transfers to the owner	Every business account for the full period, with deposits that line up with BAS sales
Accountant’s letter	The accountant’s confirmation of the declared income or of affordability	On the lender’s own template where it has one, such as Pepper Money’s. AFG Home Loans Retro Lite needs an accountant on the Tax Practitioners Board register.
Income declaration	Your client’s stated income or financial position	The same figure as the accountant’s letter and the loan application
ABN and GST records	Business age and GST status	Registration dates meet the lender’s minimum

Reading a BAS Statement Example

This fictional BAS statement example turns two quarters of sales into an annual turnover figure. Jordan’s last two quarterly BAS report total sales at label G1 of $66,000 and $71,500. Both figures include GST.

The ATO lets a business using the accounts method report G1 without GST, so confirm which basis the BAS uses before you compare it with anything. Removing GST gives $60,000 and $65,000, which is $125,000 for six months, or $250,000 a year. The GST on sales at label 1A is $6,000 and $6,500 if all of Jordan’s sales are taxable.

Turnover isn’t income. Each lender converts turnover into assessable income with its own method. Bluestone, for example, asks for its BAS calculator in PDF with the statements.

Reconcile Turnover, Cash Flow and Drawings

Business bank deposits for the same six months need to line up with the $137,500 of GST-inclusive sales. Explain any gap before you submit, such as transfers between the client’s own accounts or a loan paid into the business account.

Then compare the declared income with the business account’s outgoings. Business costs and the owner’s transfers to personal accounts, called drawings, show whether the business can support the income your client declares.

When No BAS Is Available

For a low doc application with no BAS, first find out why the BAS is missing. The ATO requires GST registration once GST turnover reaches $75,000 or more, and registered businesses lodge a BAS. A business below that threshold can be unregistered and have no BAS at all.

• If the client isn’t registered for GST, use a lender that accepts bank statements or an accountant’s letter alone. Mortgage House lists BAS in its Path C only where they apply.
• If the client registered recently, count the lodged quarters against the lender’s period before you choose between BAS and bank statements.
• If BAS are overdue, have the client lodge them first. Pepper Money asks for lodged BAS, and AFG’s Retro Lite TMD lists tax debt as unsuitable.

Without BAS, reconcile bank-statement deposits with business costs and drawings before you recommend a route. That check shows whether bank statements alone or an accountant’s letter will carry the declared income.

Compare Trade-Offs

Low doc routes trade a lighter income file for lower LVR caps, higher application fees and fewer product features at some lenders. This table compares each lender’s published limits and leaves out interest rates, which change too often for a fixed comparison.

Route and source date	Maximum LVR and loan size	Documentation burden	Fees, LMI and product limits
Pepper Money Alt Doc, as at October 2026	95% on loans up to $3 million. 80% on loans up to $5 million.	Declaration plus one evidence item, with 6-month periods for bank statements and BAS	Eligibility criteria apply to Pepper’s accountant’s letter. Terms up to 40 years.
Liberty low doc, effective 1 October 2026	85%. Loans from $50,000 to $8 million.	Bank statements, BAS or an accountant’s declaration	Terms of 10 to 40 years, with a rate loading on terms over 30 years
La Trobe Financial Self-Employed Lite Doc, as at October 2026	80% up to $5 million, 75% up to $10 million	Declaration plus an accountant’s letter, trading statements or BAS	No LMI. Application fee from 0.75% of the loan amount, against from $995 for its Self-Employed Full Doc loan.
Bluestone Alt Doc, updated 10 November 2025	Loan caps set by tier and LVR band	One evidence item, with 6-month periods for BAS and bank statements and a BAS calculator for BAS	Construction loans for Prime and Near Prime only, in metro locations
AFG Home Loans Retro Lite, TMD dated 20 October 2025	Loans of $100,000 to $3 million	Accountant on the Tax Practitioners Board register	Variable rate only and no construction loans. Unsuitable for impaired credit or tax debt.

A higher LVR cap changes the deposit your client needs. At Pepper Money a 5% deposit can be enough, while La Trobe Financial’s 80% cap needs 20% plus costs. Price the shortlist on the day you recommend it, because each lender’s rate depends on the LVR, the risk tier and the evidence used.

Construction and Rural Security

Alternative income evidence works for construction and rural loans only where the lender’s construction and security rules also accept the file. Check those rules before you compare income evidence.

Construction Loans

Bluestone’s 10 November 2025 policy guide accepts full doc and alt doc construction loans in its Prime and Near Prime tiers. It lends up to $3 million at 60% LVR or less, and up to 80% of the expected on-completion valuation on loans up to $1.5 million. Its construction loans are for metro locations only, with no owner-builders or related builders.

The reduced income file doesn’t reduce the construction file. Bluestone needs development consent, plans, specifications and a fixed-price contract with a registered third-party builder. It also needs evidence of home warranty and builder’s risk insurance before construction begins.

The loan then pays the builder in progress payments as each stage finishes. Each payment follows the builder’s invoice for that stage, and a lender can send a valuer to certify the work before it pays. That draw evidence is the same whatever income evidence your client used.

At Bluestone, repayments are interest only during construction, with interest paid monthly until the loan converts after completion. The construction loan requirements guide explains the build documents in more detail.

As at October 2026, La Trobe Financial’s residential construction loan accepts full doc or Lite Doc verification for a single or duplex dwelling. It lends up to $3 million at 80% LVR. AFG’s Retro Lite TMD lists construction loans as unsuitable, and Mortgage House lists low doc construction loans among its products.

Land Before the Build

La Trobe Financial’s pre-construction land loan accepts full doc or Lite Doc verification, as at October 2026. Its maximum LVR is 75% in metro areas, 70% in regional areas and 65% elsewhere, on an interest-only term of up to two years. Bluestone accepts vacant residential land at a maximum 70% LVR and $1.5 million, where the land is registered and can connect to water and power.

Rural Security

As at October 2026, La Trobe Financial’s Rural-Residential Lite Doc loan takes properties typically between 25 and 100 acres. It lends up to $2.5 million at a maximum 75% LVR, with a borrower repayment declaration plus an accountant’s letter, BAS or trading statements.

Bluestone’s 10 November 2025 guide accepts rural residential properties up to 5 acres (2 hectares) and treats hobby farms as unacceptable security. Its construction loans are metro only, so a low doc construction loan in a rural area needs a lender whose construction policy accepts that location. The rural property home loan guide helps you assess rural locations and land size.

For a rural or construction file, check the lender’s security and location rules first and its construction rules second. Compare income evidence last. If the property or the build falls outside a lender’s policy, a lighter income file won’t change that outcome.