BAS-based
4 quarters of Business Activity Statements showing GST turnover. Lender derives income estimate from BAS. Suits established businesses with steady turnover and clean ATO standing.
Low doc / alt doc lending
Lending built around real cashflow, not just tax returns
Low doc — sometimes called alt doc — lending was created to solve a real problem: self-employed borrowers whose accountants legitimately minimise taxable income through valid deductions and structuring end up looking thin on paper, even when their cashflow is strong.
Modern low doc lending isn't the "no-questions-asked" style of pre-GFC days. Lenders require real evidence of income — but accept alternative forms: Business Activity Statements, accountant declarations, business bank statements, or a combination. Each lender has its own preferred evidence type.
The borrowers we help with low doc are typically business owners 1–3 years post-startup, accountants and lawyers in early partnership, contractors with strong day rates but recent income transitions, and property investors with strong cashflow but complex tax positions.
Three evidence pathways
Three ways to evidence income on low doc
Accountant declaration
Your accountant signs a declaration of your annual taxable income for serviceability purposes. Suits structures where formal financials are still being finalised but accountant has good visibility.
Bank statements
6–12 months of business bank statements showing income deposits. Lender uses average monthly business income as the basis for serviceability calculation.
When low doc fits
When is low doc the right choice?
Tax returns don't reflect real income
Heavily-minimised tax returns through depreciation, interest deductions or other strategies that an accountant has correctly applied.
Recent tax returns not available
Recent business changes (new company, new partnership, restructure) mean current-year financials aren't yet finalised. BAS or bank statements can bridge.
Add-back complexity
Your taxable income before add-backs (interest, depreciation, one-off costs) is much lower than your true serviceable income. Full doc lender add-back policies vary; low doc sometimes simpler.
Short business history
Less than 2 years' returns available but strong recent BAS or bank statement turnover. Low doc lenders often accept 12 months trading where full doc lenders won't.
Investment-grade transaction
Lower-LVR (60–70%) investment property purchases where the income test isn't the binding constraint anyway. Low doc simplicity wins.
Confidentiality
Some borrowers prefer not to disclose complete tax returns for privacy reasons. Low doc reduces the documentation footprint while still meeting responsible lending obligations.
Client stories
Real outcomes for real clients
★★★★★
"The team made what felt like a daunting process completely manageable. We secured a rate the bank wouldn't touch directly and were in our first home eight weeks later."
★★★★★
"After years of being told no by the majors for our self-employed structure, MortgageHQ found a solution. Approval came within a fortnight and on competitive terms."
★★★★★
"We refinanced our commercial property and unlocked equity for a second purchase — they structured the whole deal across two lenders. Saved us hundreds of basis points."
Answers
Low doc lending — frequently asked questions
What's the difference between low doc and full doc?
Full doc uses 2 years of personal and business tax returns plus financial statements for income evidence. Low doc (also called alt doc) uses alternative evidence — typically BAS, accountant declaration or business bank statements — instead of tax returns. Low doc is for borrowers whose tax returns don't reflect true serviceable income.
Is low doc lending more expensive?
Sometimes, but not always. Bank-channel low doc rates from major banks are similar to full doc. Non-bank low doc rates can be 50–150bps higher than full doc. The premium is narrower than it used to be. For many self-employed borrowers, slightly higher rate is more than offset by access to a loan that wouldn't otherwise approve.
How much can I borrow on low doc?
Most lenders cap low doc LVR at 80% (some at 70%). Above 80% LMI is typically required, and at higher LVRs the loan reverts to needing full doc evidence with most lenders. Owner-occupier vs investment may have different LVR caps.
How long does a low doc application take?
Generally similar to full doc — 2–4 weeks from submission to approval. Document verification can be faster (BAS or bank statements vs full tax returns), but lender credit assessment processes are similar.
Will my accountant need to be involved?
For accountant declaration pathway, yes — your accountant signs a formal declaration of your income for serviceability. For BAS and bank statement pathways, accountant involvement is optional but recommended to ensure documentation is consistent with broader financial reporting.
Can I refinance from low doc to full doc later?
Yes — this is a common pathway. Many borrowers use low doc to access lending now, then refinance to a sharper full doc product 12–24 months later when tax returns better reflect their financial position. We plan for this transition from the start.
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